WYOMISSING, Pa.--(BUSINESS WIRE)--UGI Energy Services LLC (UGIES), a subsidiary of UGI Corporation (NYSE: UGI), announced today the acquisition of midstream assets from Rockdale Marcellus LLC (Rockdale) by its wholly owned subsidiary, UGI Texas Creek LLC (UGI Texas Creek).
UGI Texas Creek acquired 100 percent of a midstream system located in Tioga, Lycoming and Bradford counties, Pennsylvania. The system is composed of more than 60 miles of natural gas gathering lines, along with dehydration and compression facilities. UGI Texas Creek received a dedication from Rockdale for the 1 Tcf of gas to be produced from the 42,000 acres associated with the midstream system described above. The midstream investment is expected to be immediately EPS accretive and grow to $0.04 accretive by year three.
With this acquisition, UGIES continues to build on its existing midstream asset base, which includes 15.0 Bcf of natural gas storage in Tioga, Potter and Cameron counties, the Auburn Gathering System in Susquehanna, Wyoming and Luzerne counties, and the recently constructed Sunbury Pipeline which originates in Lycoming County, Pennsylvania. UGIES also operates a liquefied natural gas (LNG) liquefaction and storage facility in Wyoming County.
“This investment is a natural progression for UGIES,” said Joe Hartz, president of UGIES. “Utilizing our expertise as a midstream operator, this acquisition enhances the buildout of natural gas infrastructure in the Appalachian Basin to further the production of Pennsylvania-produced, abundant natural gas and helps position UGIES as a premier provider of midstream services in the Appalachian Basin.”
“These assets will extend UGIES’ reach through every step of the supply chain, from producers at the wellhead to storage to end-use customers, through direct pipeline delivery or by using LNG. The connection of these assets to both the Transco and Tennessee interstate pipelines, among other pipelines in the area, provides UGIES with the opportunity to attract third-party volumes from numerous producers and a platform for future growth in one of the most prolific parts of the basin,” added Hartz.
About UGI Energy Services, LLC
UGI Energy Services, LLC markets natural gas, electricity and liquid fuels to commercial, institutional and industrial customers at approximately 43,000 locations in ten eastern states and Washington, D.C. UGIES owns and operates, natural gas underground storage fields, gathering systems, compressor stations and peaking plants including LNG liquefaction and vaporization capability, as well as propane terminals. In addition, UGIES owns and operates a variety of midstream natural gas assets that support the storage, transportation and delivery of natural gas in the Mid-Atlantic region and also owns and operates electric generation assets in Pennsylvania. To learn more about UGIES, visit: www.ugies.com.