Stonehenge, UGI Complete $120 Million Acquisition of Pennsylvania Gas Gathering Systems
(P&GJ) — Pine Run Gathering LLC has acquired Superior Midstream Appalachian LLC in a $120 million deal, subject to customary adjustments. Pine Run Gathering is a joint venture between Stonehenge Energy Resources III LLC, a portfolio company of Energy Spectrum Partners VIII LP, and UGI Corporation's subsidiary, UGI Energy Services LLC.
Superior Appalachian operates three natural gas gathering systems in Pennsylvania—Pittsburgh Mills, Snow Shoe, and Brookfield. These systems collectively handle approximately 190 million cubic feet of natural gas per day. The Pittsburgh Mills system connects to UGI Energy Services’ Big Pine gathering system, and all three assets have long-term acreage dedications.
The acquisition, financed through debt, gives Stonehenge a 51% ownership stake in Pine Run Gathering, while UGI Energy Services holds 49%. The deal is expected to boost earnings immediately.
“Today marks an exciting day for us and our partners at UGI Energy Services,” said Patrick Redalen, President and 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.”
UGI Corporation’s President and CEO, Bob Flexon, highlighted the deal’s strategic fit. “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,” Flexon said.
Baker Botts L.L.P. and Vinson & Elkins LLP served as legal counsel to Pine Run Gathering. BOK Financial acted as the Administrative Agent, with Cadence Bank and Citizens Bank serving as Joint Lead Arrangers.
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