Unitil Corporation (NYSE: UTL) has announced its agreement to purchase Bangor Natural Gas Company from PHC Utilities, Inc., a subsidiary of Hope Utilities, Inc., for $70.9 million on a debt-free basis. This acquisition is expected to be completed by the end of the first quarter of 2025, pending approval by the Maine Public Utilities Commission and other closing conditions.
Bangor Natural Gas Company, established in 1998, serves approximately 8,500 customers and operates around 351 miles of distribution pipelines and nine miles of transmission pipelines. The enterprise value of Bangor represents a multiple of approximately 1.2 times its rate base, based on its estimated rate base as of December 31, 2023.
Unitil plans to finance the transaction with a balanced mix of equity and debt, and has secured committed debt financing from Scotiabank to fund the purchase price.
Upon completion of the transaction, Bangor will become a wholly owned subsidiary of Unitil. Thomas P. Meissner, Jr., Unitil’s Chairman and Chief Executive Officer, expressed that Bangor Natural Gas Company is a great complement to their current natural gas distribution operations in Maine, and highlighted Bangor's strong management team committed to providing safe, clean, reliable, and affordable energy to customers.
Unitil Corporation, a public utility holding company with operations in Maine, New Hampshire, and Massachusetts, serves approximately 108,500 electric customers and 88,400 natural gas customers across its operating utilities. Today the company's shares have moved 1.1% to a price of $55.11. If you want to know more, read the company's complete 8-K report here.
