Pine Run Gathering, 51% of which is owned by Stonehenge Energy and 49% by UGIES, financed the acquisition entirely through debt. Credit: khunkornStudio/Shutterstock.

Pine Run Gathering has completed the acquisition of Superior Midstream Appalachian for $120m, enhancing its presence in the Pennsylvania region.

Superior Appalachian operates the Pittsburgh Mills, Snow Shoe and Brookfield gathering systems in Pennsylvania.

The acquisition was fully financed through debt by Pine Run Gathering, a joint venture with 51% ownership by Stonehenge Energy Resources III and a 49% stake by UGI Energy Services.

The Pittsburgh Mills system is connected to UGI Energy Services’ Big Pine gathering system. These systems boast long-term acreage dedications and a combined flow of approximately 190 million cubic feet per day.

The transaction is expected to be immediately accretive to earnings, suggesting a positive financial outlook for Pine Run Gathering.

Stonehenge president and CEO Patrick Redalen said: 鈥淭his acquisition underscores our optimism about the future of our industry and the strength of our partnerships with UGI and Energy Spectrum. We are excited to welcome the talented team that has been supporting these assets and look forward to continuing to work closely together with the customers on all our systems as we help provide the energy needed by our country and the world.鈥�

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don鈥檛 let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Stonehenge, which was established in 2007, gathered and processed natural gas liquids-rich gas in western Pennsylvania, supporting early Appalachian unconventional shale gas development.

The acquisition takes the total number of natural gas gathering systems operated by Stonehenge to five across western and central Pennsylvania.

UGI president and CEO Bob Flexon said: 鈥淲e are excited to announce this investment alongside our partners at Stonehenge.

鈥淭he assets are highly complementary to our existing midstream footprint and will extend our reach from producers through to end-use customers, demonstrating our commitment to explore additional growth opportunities within the Midstream business.鈥�

Legal advisory for the acquisition was provided by Baker Botts and Vinson & Elkins, while BOK Financial acted as the administrative agent on the deal.

Additionally, Cadence Bank and Citizens Bank were appointed as joint lead arrangers.