As previously announced, UGI Corporation (UGI) entered into a definitive agreement to acquire 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, which includes the assumption of approximately $140 million of debt.
- Highly strategic and complementary investment in a single-state utility adjacent to UGI’s existing utility footprint.
- Enterprise value represents approximately 1.4 times projected 2021 rate base.
- The acquisition will increase UGI’s regulated utility rate base and customers served by nearly 14% and 30%, respectively, and is consistent with its strategy to focus growth investments on natural gas and renewable energy solutions opportunities.
- Accretive to adjusted earnings per share (“EPS”) in first full year of operations.
- Supports all financial targets and commitments including long-term 6% - 10% EPS growth and 4% annual dividend growth.
- Mountaineer offers a secure platform for growth with predictable, regulated investment opportunities over the next several decades to improve the safety and reliability of the distribution system, serve new customers on the system, decrease methane and greenhouse gas emissions (“GHG”), and build on a long history of providing excellent customer service.
