Pine Run Gathering LLC, a joint venture owned by subsidiaries of Stonehenge Energy Resources III LLC and UGI Energy Services LLC (UGIES), has completed a transaction to acquire Pine Run Midstream LLC for $205 million.

stonehenge

The acquisition is from Pittsburgh-based independent PennEnergy, an anchor customer on the Pine Run system. 

Pine Run Midstream currently operates 43 miles of dry gas gathering pipeline and compression assets within western Pennsylvania’s Butler and Armstrong counties. The system is to be operated by Stonehenge.

The transaction is to be funded with debt and 51% equity capital from Stonehenge and 49% from UGIES. Stonehenge and UGIES expect the investment to be accretive to earnings promptly. 

Stonehenge “views the strategic partnership with UGIES as a...