News Summary
SiEnergy Operating, a subsidiary of Northwest Natural Holding Company, is set to acquire EPCOR USA Inc.’s Texas natural gas utility, Hughes Gas Resources, for $60 million. This acquisition will expand SiEnergy’s presence in the Houston area, positioning them as a key player in Texas’s natural gas sector. With a robust infrastructure and a commitment to service reliability, SiEnergy aims to enhance operational standards for Texas customers. The deal is expected to close in 2025, promising a bright future for both the utility and its community.
Texas – SiEnergy Operating, a subsidiary of Northwest Natural Holding Company (NYSE: NWN), has announced plans to acquire EPCOR USA Inc.’s Texas natural gas utility, known as Hughes Gas Resources, Inc. or EPCOR Texas Gas, for $60 million. This acquisition is expected to close in the second quarter of 2025 and will expand SiEnergy’s footprint in the Houston metropolitan area.
EPCOR Texas Gas currently manages approximately 6,900 metered connections and operates 353 miles of pipeline serving 12 communities northeast of Houston. The utility has been under EPCOR’s ownership since 2017 and is projected to have a rate base of roughly $46 million by the end of 2025. SiEnergy’s acquisition is strategically aligned with its goal to grow and diversify its utility portfolio within Texas.
The acquisition is highlighted by both companies as a mutually beneficial move. SiEnergy aims to enhance service reliability for natural gas consumers by leveraging its established operations and scale within the natural gas utility sector. SiEnergy has expressed its eagerness to expand its presence in the rapidly growing Houston area, anticipating positive implications for customers who would benefit from improved service and established operational expertise.
This acquisition aligns with EPCOR USA’s recent strategic shift away from natural gas toward focusing on water-related opportunities. EPCOR Utilities has made this decision under the leadership of John Elford, President and CEO of EPCOR Utilities Inc., as part of a broader initiative to concentrate on environmental stewardship and community well-being.
EPCOR Texas boasts a history of facilitating infrastructure for residential and commercial developments within high-growth areas around Houston, making it a valuable addition to SiEnergy’s operations. The acquisition is framed as a step towards ensuring that natural gas customers enjoy reliable service backed by professional expertise in the utilities field.
SiEnergy has stated that it looks forward to integrating EPCOR Texas Gas into its existing services. The company’s president has noted the exciting potential for growth and service enhancement in the metro area as they proceed with this acquisition. The emphasis on utilizing their extensive background operating as a natural gas utility is expected to bring significant benefits to the local communities served by EPCOR Texas.
As a well-established entity, NW Natural Holding Company has been operational for over 166 years, providing critical energy and water services across seven states. The company is known for its commitment to customer satisfaction and ethical business practices, which have contributed to its longstanding reputation in the industry.
In summary, SiEnergy’s acquisition of EPCOR Texas Gas represents an important strategic development in the Texas natural gas market. By integrating EPCOR’s assets and expertise, SiEnergy aims to solidify its presence in Houston while enhancing service delivery and reliability for its customers, fostering a more robust natural gas utility network in the region.
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