SiEnergy, founded in 1997, distributes natural gas to customers in and around Texas including Dallas-Fort Worth, Austin and Houston. (Source: Shutterstock)
Portland, Oregon-based Northwest (NW) Natural Holdings Co. has agreed to acquire natural gas distribution utility SiEnergy Operating for $273 million in cash and assuming $152 million in debt.
NW Natural said the transaction should further support its long-term earnings growth outlook of 4% to 6%. CEO David Anderson said on a Nov. 19 conference call that the opportunity to expand in Texas was too good to pass up.
The purchase “builds on our core strength of operating utilities and delivering essential services to customers,” Anderson said. “Texas is one of the fastest-growing states in the nation with a constructive regulatory and policy environment.”
SiEnergy, founded in 1997, distributes natural gas to customers in and around the state including Dallas-Fort Worth, Austin and Houston. NW noted strong growth in population and employment in SiEnergy’s service territories.
NW Natural said it expects to finance the cash portion of the acquisition with junior subordinated notes in the first half of 2025, which is when the sale is expected to close.
The company predicts SiEnergy’s capex to be in the range of $450 million to $650 million over the next five years.
J.P. Morgan Securities LLC is serving as exclusive financial adviser to Northwest with Stoel Rives, LLP serving as legal adviser.
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