UGI to Acquire Stonehenge Appalachia Midstream Natural Gas Gathering System
Posted on 01/04/2022
UGI Corporation (NYSE:UGI), through its subsidiary, UGI Energy Services, LLC, entered into a definitive agreement to acquire Stonehenge Appalachia, LLC from Stonehenge Energy Holdings, LLC for approximately US$ 190 million. This investment is expected to be immediately accretive to adjusted earnings. The Stonehenge system, located in Butler County Pennsylvania, includes more than 47 miles of pipeline and associated compression assets, and has gathering capacity of 130 million cubic feet per day. Stonehenge Energy Resources II L.P. owns Stonehenge Energy Holdings, LLC which holds Stonehenge Appalachia, LLC and 60% of Stonehenge Laurel Gathering, LLC. The operating companies own and operate gathering and compression facilities serving natural gas producers in Butler and Clarion Counties, Pennsylvania.
UGI Corporation is a distributor and marketer of energy products and services. Through subsidiaries, UGI operates natural gas and electric utilities in Pennsylvania and West Virginia, distributes LPG both domestically (through AmeriGas) and internationally (through UGI International), manages midstream energy assets in Pennsylvania, Ohio, and West Virginia and electric generation assets in Pennsylvania, and engages in energy marketing, including renewable natural gas in the eastern region of the United States and California, and internationally in France, Belgium, the Netherlands and the UK.
Stonehenge Energy Resources II, L.P. is a limited partnership, formed in 2012, based in Westminster, Colorado. The General Partner is 3MG Enterprises II, LLC. 3MG is owned by the principals of Stonehenge and the owners of Kahuna Ventures LLC. Kahuna is a midstream engineering enterprise headquartered in Westminster, Colorado. The Limited Partners are Energy Spectrum Partners VI LP and Energy Spectrum Partners VII LP, the sixth and seventh midstream equity funds of Energy Spectrum Capital. Energy Spectrum is a private equity firm, located in Dallas, focused exclusively on the energy industry. It has managed and currently manages cumulatively $3.5 billion.
