UGI Corporation Completes Acquisition of Mountaineer Gas
September 01 2021 - 4:15PM
Business Wire
UGI Corporation (NYSE: UGI) has completed the previously
announced acquisition of Mountaintop Energy Holdings LLC, owner of
Mountaineer Gas Company (“Mountaineer”), the largest gas local
distribution company in West Virginia, for an enterprise value of
$540 million. With all closing conditions now satisfied, including
final regulatory approval from the West Virginia Public Service
Commission, Mountaineer becomes the newest wholly-owned subsidiary
of UGI.
UGI also announced that C. David Lokant has been named president
of Mountaineer, effective immediately. Mr. Lokant will assume
responsibility for all aspects of Mountaineer’s operations. Mr.
Lokant previously served as Chief Operating Officer and Senior Vice
President for Mountaineer. He joined Mountaineer when West Virginia
Power Gas assets were purchased from UtiliCorp in 2000. Mr. Lokant
has more than 30 years of industry experience and has held a
variety of positions throughout his career in operations,
regulatory relations, customer service, accounting, and
engineering.
Mountaineer serves nearly 215,000 customers across 50 of West
Virginia’s 55 counties. The customer base is approximately 90%
residential, with the remaining 10% comprised of commercial and
industrial customers. Mountaineer is fully regulated, and its
system has nearly 6,000 miles of distribution, transmission, and
gathering pipelines.
“We are very pleased to complete this important acquisition and
expand our core utility operations in the mid-Atlantic region. I am
also confident that Dave will provide excellent leadership of
Mountaineer,” said Roger Perreault, President and Chief Executive
Officer of UGI. “This addition provides us with an opportunity to
deliver safe, reliable, affordable, and environmentally responsible
energy solutions to customers in West Virginia. We see significant
opportunities to make regulated investments focused on long-term
system enhancement and expand the reach of natural gas to both
unserved and underserved areas. We are also pleased with this
acquisition as it supports our strategy of delivering reliable
earnings growth and rebalancing our portfolio.”
“We look forward to welcoming the Mountaineer employees and
customers to the UGI family of companies. Mountaineer is a great
fit for our natural gas businesses and UGI as a whole,” said Robert
F. Beard, UGI’s Executive Vice President, Natural Gas. “The company
brings an exceptional management team with significant experience,
a track record of safe operations, and strong regulatory, customer
and community relationships. Like UGI Utilities, Mountaineer’s
customers are situated in the prolific Marcellus shale production
region and have access to clean, abundant, reliable, and affordable
natural gas. We look forward to becoming a part of the West
Virginia community and investing in the safety and reliability of
the Mountaineer system in alignment with our environmental efforts
to lower methane and other GHG emissions. With over 135 years of
experience in the gas utilities business, we are confident that we
can execute on these investment opportunities while maintaining
competitive rates and providing best-in-class service to our new
customers.”
About UGI Corporation
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.
Comprehensive information about UGI Corporation is available on
the Internet at https://www.ugicorp.com.
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