Unitil Corporation (NYSE: UTL) has just announced the acquisition of Maine Natural Gas Company from Avangrid Enterprises, Inc. for $86.0 million on a debt-free basis. This acquisition is expected to close by the end of 2025 and is subject to approval by the Maine Public Utilities Commission.
Maine Natural Gas Company, which began operations in 1999, serves approximately 6,300 residential and commercial natural gas customers in nine communities in the greater Portland region of Maine, as well as the capital city of Augusta. The company's gas system comprises around 230 miles of distribution mains and is estimated to have approximately $69.0 million of rate base as of December 31, 2024. Notably, its customer growth over the most recent five-year period averaged 4.4% annually.
The acquisition of Maine Natural Gas Company is seen as highly complementary to Unitil's existing natural gas distribution operations in Maine. With Unitil's recent acquisition of Bangor Natural Gas Company, the company will now serve communities representing over 40% of Maine's total population.
Unitil anticipates that the acquisition will be earnings accretive over the long term, supporting the company's long-term earnings per share growth of 5% to 7%.
Unitil Corporation, a public utility holding company, operates in Maine, New Hampshire, and Massachusetts. With the recent acquisition of Bangor Natural Gas Company, Unitil's operating utilities now serve approximately 109,400 electric customers and 97,600 natural gas customers. The market has reacted to these announcements by moving the company's shares -2.8% to a price of $55.42. For the full picture, make sure to review Unitil's 8-K report.
