Loading...
Loading...
Black Hills Corp.
BKH
today entered into an agreement to acquire the stock of Energy West
Wyoming, Inc., a Wyoming gas utility, and pipeline assets from Energy
West Development, Inc., both indirect, wholly owned subsidiaries of Gas
Natural, Inc. (NYSE MKT:
EGAS).
Black Hills Corp. will acquire the utility business and pipeline assets
for $17 million, subject to customary closing adjustments. The gas
utility currently serves approximately 6,700 customers, including
service to Cody, Ralston and Meeteetse, Wyoming. The pipeline assets
include a 30 mile gas transmission pipeline and a 42 mile gas gathering
pipeline, both located near the utility service territory. Black Hills
intends to operate the utility under the name Black Hills Energy.
"This acquisition is an excellent fit for Black Hills and allows us to
leverage our scale, commitment to the state of Wyoming and 131 years of
experience providing customers with safe and reliable energy," said Linn
Evans, Black Hills Corp.'s president and chief operating officer of
utilities. "We are making progress in our strategy to grow our customer
base through acquiring utilities near our existing operations.
Specifically, this acquisition, in conjunction with our pending
acquisition of MGTC, will expand our Wyoming operations."
The transaction requires approval by the Wyoming Public Service
Commission, the Montana Public Service Commission and the Federal Energy
Regulatory Commission and is expected to close within six to 12 months.
The company expects the purchase to be slightly accretive to earnings
after the first full year of Black Hills' ownership.
"We look forward to welcoming these new customers and employees to the
Black Hills family," continued Evans. "Black Hills will continue to
support regional economic development efforts and local civic and
charitable activities in addition to offering customers additional
resources to manage their energy consumption."
Loading...
Loading...
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted In: NewsPress Releases
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in