Pine Run Gathering, a joint venture, recently completed its acquisition of Pine Run Midstream from a PennEnergy Resources affiliate and its minority partners for $205 million.
Pine Run Gathering is owned by a subsidiary of Stonehenge Energy Resources III, a subsidiary of UGI Corp. and a portfolio company of Energy Spectrum Partners VIII LP, and a subsidiary of UGI Energy Services (UGIES). PennEnergy is a Pittsburgh-based independent oil and gas company and anchor customer on the Pine Run system.
This is Stonehenge’s fourth venture in the Appalachian basin. It will operate the Pine Run Midstream. The midstream operates 43-miles of dry gas gathering pipeline and compression assets in Butler and Armstrong counties.
“Stonehenge is pleased to add the Pine Run Midstream system to our operations in western Pennsylvania and views the strategic partnership with UGIES as a beneficial step to providing area producers with cost-effective, customer-focused services,” Patrick Redalen, Stonehenge CEO, said. “The Pine Run Midstream system is a high-quality asset that has been well managed and operated by the PennEnergy team.”
The midstream is UGIES’ second recent investment in the Appalachian basin. It will add its ownership stake in Pine Run Gathering to UGI Appalachia, which operates gathering assets in Pennsylvania, Ohio, and West Virginia.