UGI Corporation 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 percent residential, with the remaining 10 percent comprised of commercial and industrial customers.
Mountaineer is fully regulated, and its system has nearly 6,000 miles of distribution, transmission, and gathering pipelines.
Roger Perreault, President and CEO of UGI, said: “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.
“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.”
For more information visit www.ugicorp.com