Energy Transfer Partners (ETP) has completed the sale of assets of Missouri Gas Energy (MGE) to Laclede Gas Co., a subsidiary of The Laclede Group, for an estimated $975 million. The transaction positions Laclede to be the largest natural gas distribution company in Missouri, serving more than 1.1 million residential, commercial and industrial customers. MGE is a division of Southern Union Co., a wholly owned subsidiary of ETP.

“We’ve been working on the integration of the two companies since last year [see Daily GPI, Dec. 18, 2012], and we are now fully ready to complete a seamless transition as we welcome Missouri Gas Energy employees and customers into the Laclede family,” said Laclede Group CEO Suzanne Sitherwood.

“Part of our initial focus will be to increase investments in the gas distribution system in western Missouri through our pipeline replacement program,” said Laclede Gas President Steve Lindsey.

St. Louis, MO-based Laclede expects the acquisition of MGE to be accretive to its Gas Utility segment’s fiscal 2014 net economic earnings per share compared to fiscal 2013.

With this purchase now complete, ETP expects to turn its attention to the sale of the assets of Southern Union’s New England Gas Co. (NEG) gas distribution division for $60 million, less assumed debt, in the fourth quarter, pending receipt of required regulatory approval. Last December Laclede signaled its intention to buy NEG along with MGE from Southern Union. However, earlier this year, Algonquin Power & Utilities Corp. assumed Laclede Group’s right to buy NEG (see Daily GPI, Feb. 13).

The sale by Southern Union of the MGE and NEG assets is another important step in ETP’s efforts to streamline and integrate its asset portfolio through the divestiture of non-core assets. The cash proceeds from these sales will be utilized to repay debt, including borrowings under ETP’s revolving credit facility.