Unitil Acquires Maine Natural Gas Company

By Tamara Parker • Saturday, April 05 15:11 • Permanent Link

Unitil Corporation (NYSE: UTL) has announced its definitive agreement to acquire Maine Natural Gas Company from Avangrid Enterprises, Inc. for $86.0 million on a debt-free basis. This acquisition is expected to be completed by the end of 2025, subject to approval by the Maine Public Utilities Commission.

Maine Natural Gas Company, which began operations in 1999, serves about 6,300 residential and commercial natural gas customers in nine communities in the greater Portland region of Maine and the capital city of Augusta. As of December 31, 2024, it is estimated to have approximately $69.0 million of rate base. Over the most recent five-year period, the company has seen an average annual customer growth of 4.4%.

Upon completion of the acquisition, Maine Natural Gas will become a wholly owned subsidiary of Unitil. The company's gas system spans approximately 230 miles of distribution mains, providing opportunities for continued customer growth. This acquisition is highly complementary to Unitil's existing natural gas distribution operations in Maine and is expected to be earnings accretive over the long-term, supporting Unitil’s long-term earnings per share growth of 5% to 7%.

Unitil Corporation, a public utility holding company with operations in Maine, New Hampshire, and Massachusetts, serves approximately 109,400 electric customers and, including the recent acquisition of Bangor Natural Gas Company, 97,600 natural gas customers.

The acquisition of Maine Natural Gas Company further strengthens Unitil’s position in Maine, with the company now serving communities representing over 40% of Maine’s total population. This strategic move aligns with Unitil’s commitment to safely and reliably delivering electricity and natural gas in New England, and to developing technologies that lead to the delivery of dependable, more efficient energy. As a result of these announcements, the company's shares have moved -2.4% on the market, and are now trading at a price of $57.01. For more information, read the company's full 8-K submission here.

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