Stonehenge and UGI Acquire Superior Midstream Appalachian Pipeline Gathering Systems
Pine Run Gathering, a joint venture between Stonehenge Energy Resources III (51%) and UGI Energy Services (49%), has completed the acquisition of Superior Midstream Appalachian for $120 million. The acquisition includes three gathering systems in Pennsylvania: Pittsburgh Mills, Snow Shoe, and Brookfield.
The acquired systems feature long-term acreage dedications and process approximately 190 million cubic feet per day in combined flow. The Pittsburgh Mills system is connected to UGIES' Big Pine gathering system. The transaction was entirely financed through debt at Pine Run Gathering and is expected to be immediately accretive to earnings.
The acquisition expands UGI's midstream footprint and enhances its reach from producers to end-use customers, demonstrating the company's commitment to growth in the Midstream business.
Pine Run Gathering, una joint venture tra Stonehenge Energy Resources III (51%) e UGI Energy Services (49%), ha completato l'acquisizione di Superior Midstream Appalachian per 120 milioni di dollari. L'acquisizione comprende tre sistemi di raccolta in Pennsylvania: Pittsburgh Mills, Snow Shoe e Brookfield.
I sistemi acquisiti presentano dediche di terreni a lungo termine e trattano circa 190 milioni di piedi cubici al giorno in flusso combinato. Il sistema Pittsburgh Mills è collegato al sistema di raccolta Big Pine di UGIES. La transazione è stata completamente finanziata tramite debito presso Pine Run Gathering e si prevede che contribuisca immediatamente agli utili.
L'acquisizione espande la presenza di UGI nel settore midstream e migliora la propria portata dai produttori ai clienti finali, dimostrando l'impegno dell'azienda nella crescita del business midstream.
Pine Run Gathering, una empresa conjunta entre Stonehenge Energy Resources III (51%) y UGI Energy Services (49%), ha completado la adquisición de Superior Midstream Appalachian por 120 millones de dólares. La adquisición incluye tres sistemas de recolección en Pennsylvania: Pittsburgh Mills, Snow Shoe y Brookfield.
Los sistemas adquiridos cuentan con dedicatorias de terrenos a largo plazo y procesan aproximadamente 190 millones de pies cúbicos por día en flujo combinado. El sistema Pittsburgh Mills está conectado al sistema de recolección Big Pine de UGIES. La transacción fue completamente financiada a través de deuda en Pine Run Gathering y se espera que contribuya inmediatamente a las ganancias.
La adquisición expande la presencia de UGI en el sector midstream y mejora su alcance desde los productores hasta los clientes finales, demostrando el compromiso de la empresa con el crecimiento en el negocio midstream.
파인런 모임은 스톤헨지 에너지 리소스 III (51%)와 UGI 에너지 서비스 (49%)의 합작 투자로, 수퍼리어 미드스트림 아펼래치안을 1억 2천만 달러에 인수했습니다. 인수에는 Pennsylvania의 세 가지 수집 시스템인 Pittsburgh Mills, Snow Shoe, Brookfield이 포함됩니다.
인수된 시스템은 장기적인 면적 기부를 특징으로 하며, 합산 흐름으로 약 일일 1억 9천만 입방피트를 처리합니다. Pittsburgh Mills 시스템은 UGIES의 Big Pine 수집 시스템에 연결되어 있습니다. 이 거래는 파인런 모임의 부채로 전적으로 자금조달되었으며, 즉각적으로 수익에 기여할 것으로 예상됩니다.
이 인수는 UGI의 미드스트림 입지를 확장하고 생산자에서 최종 소비자까지의 접근을 개선하여 미드스트림 비즈니스 성장에 대한 회사의 의지를 보여줍니다.
Pine Run Gathering, une coentreprise entre Stonehenge Energy Resources III (51%) et UGI Energy Services (49%), a finalisé l'acquisition de Superior Midstream Appalachian pour 120 millions de dollars. L'acquisition inclut trois systèmes de collecte en Pennsylvanie : Pittsburgh Mills, Snow Shoe et Brookfield.
Les systèmes acquises comportent des engagements de surface à long terme et traitent environ 190 millions de pieds cubes par jour en flux combiné. Le système Pittsburgh Mills est connecté au système de collecte Big Pine de UGIES. La transaction a été entièrement financée par la dette de Pine Run Gathering et devrait immédiatement contribuer aux bénéfices.
L'acquisition étend l'empreinte midstream de UGI et améliore sa portée des producteurs aux clients finaux, illustrant l'engagement de l'entreprise à croître dans le secteur midstream.
Pine Run Gathering, ein Joint Venture zwischen Stonehenge Energy Resources III (51%) und UGI Energy Services (49%), hat die Übernahme von Superior Midstream Appalachian für 120 Millionen Dollar abgeschlossen. Die Übernahme umfasst drei Sammelsysteme in Pennsylvania: Pittsburgh Mills, Snow Shoe und Brookfield.
Die übernommenen Systeme verfügen über langfristige Flächennutzungsrechte und verarbeiten etwa 190 Millionen Kubikfuß pro Tag im kombinierten Fluss. Das Pittsburgh Mills-System ist mit UGIES' Big Pine-Sammelsystem verbunden. Die Transaktion wurde vollständig durch Schulden bei Pine Run Gathering finanziert und soll sofort zur Ertragssteigerung beitragen.
Die Übernahme erweitert die Midstream-Präsenz von UGI und verbessert die Reichweite vom Produzenten bis zum Endverbraucher und zeigt das Engagement des Unternehmens für das Wachstum im Midstream-Geschäft.
- Immediate earnings accretion expected from the acquisition
- Strategic expansion of midstream footprint through three gathering systems
- Long-term acreage dedications securing future revenue streams
- Significant daily flow of 190 million cubic feet per day
- Integration potential with existing Big Pine gathering system
- 100% debt financing of the $120 million acquisition increases leverage
- Minority ownership position (49%) limits UGI's control over operations
Insights
This strategic
The deal's immediate accretive nature to earnings, despite being fully debt-financed, suggests strong cash flow generation potential from the acquired assets. The 190 million cubic feet per day of combined flow, backed by long-term acreage dedications, provides reliable revenue streams that support the debt service.
The operational synergies are compelling, especially the Pittsburgh Mills system's integration with UGIES' existing Big Pine gathering system. This interconnection enhances network effects and potentially provides cost optimization opportunities through improved capacity utilization and operational efficiency.
The timing of this acquisition is strategic, considering the growing importance of natural gas infrastructure in the energy transition. The Appalachian Basin's role in U.S. energy security and export capabilities makes these assets particularly valuable. The long-term acreage dedications provide a hedge against production volatility and ensure steady utilization rates.
For UGI, this expansion represents a calculated move to strengthen its midstream business segment, potentially capturing more value across the natural gas value chain. The joint venture structure with Stonehenge also allows for risk-sharing while maintaining significant operational influence through the
Stonehenge and UGI Acquire Superior Midstream Appalachian Pipeline Gathering Systems (Graphic: Business Wire)
Superior Appalachian owns and operates three gathering systems in
“Today marks an exciting day for us and our partners at UGI Energy Services,” said Patrick Redalen, President & CEO of Stonehenge. “This acquisition underscores our optimism about the future of our industry and the strength of our partnerships with UGI and Energy Spectrum. We are excited to welcome the talented team that has been supporting these assets and look forward to continuing to work closely together with the customers on all our systems as we help provide the energy needed by our country and the world.”
“We are excited to announce this investment alongside our partners at Stonehenge,” said Bob Flexon, President & CEO, UGI Corporation. “The assets are highly complementary to our existing midstream footprint and will extend our reach from producers through to end-use customers, demonstrating our commitment to explore additional growth opportunities within the Midstream business.”
Baker Botts L.L.P. and Vinson & Elkins LLP served as legal counsel to Pine Run Gathering, and BOK Financial served as the Administrative Agent on the transaction. Cadence Bank and Citizens Bank served as Joint Lead Arrangers.
About Stonehenge
Headquartered in
About UGI Corporation
UGI Corporation (NYSE: UGI) is a distributor and marketer of energy products and services in the
Comprehensive information about UGI Corporation is available on the Internet at https://www.ugicorp.com.
About Energy Spectrum Capital
Energy Spectrum Capital is a
View source version on businesswire.com: https://www.businesswire.com/news/home/20250127782348/en/
STONEHENGE
John Ha
Vice President of Business Development
(303) 991-1481
UGI
610-337-1000
Tameka Morris, ext. 6297
Arnab Mukherjee, ext. 7498
Source: UGI Corporation
FAQ
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