Pine Run Gathering has completed a transaction to acquire Superior Midstream Appalachian for $120 million subject to customary adjustments.
Pine Run Gathering is a joint venture owned by a subsidiary of Stonehenge Energy Resources III, a portfolio company of Energy Spectrum Partners VIII LP, and UGI Corporation’s wholly owned subsidiary, UGI Energy Services (UGIES).
Superior Appalachian owns and operates three gathering systems in Pennsylvania: Pittsburgh Mills, Snow Shoe and Brookfield. The Pittsburgh Mills system is connected to UGIES’ Big Pine gathering system. All three have long-term acreage dedications and total combined daily flow of approximately 190 million cubic feet per day. The transaction was wholly financed by debt at Pine Run Gathering, in which Stonehenge and UGIES hold a 51 percent and 49 percent ownership interest, respectively, and is expected to be immediately accretive to earnings.