Acquisition expands SiEnergy’s footprint in Houston area and supports EPCOR’s U.S. growth strategy focused on water
SiEnergy Operating (SiEnergy), a wholly owned subsidiary of Northwest Natural Holding Company, and EPCOR USA Inc. (EPCOR USA) announced an agreement for SiEnergy to acquire 100% of the capital stock of Hughes Gas Resources, Inc. (EPCOR Texas Gas) for $60 million. The transaction is expected to close in the second quarter of 2025.
EPCOR Texas Gas’s assets include approximately 6,900 metered connections and 353 miles of pipeline that serve 12 communities northeast of Houston. EPCOR Texas Gas, which has owned and operated the assets since 2017, is expected to have a rate base of approximately $46 million at the end of 2025.
“With a similar business model as SiEnergy, Hughes has grown organically by providing infrastructure to residential and commercial developments in high-growth areas surrounding Houston,” said NW Natural Holdings CEO Justin Palfreyman. “EPCOR Texas Gas is a great fit for us as we continue to expand and diversify our overall utility portfolio in Texas.”
“Today’s announcement reflects a strategic decision by EPCOR USA to focus growth plans in Texas on water opportunities,” said John Elford, President and CEO of EPCOR Utilities Inc. “Our natural gas customers and operations teams will also benefit from SiEnergy’s scale and experience as a natural gas utility operator, and we look forward to working together to facilitate a seamless transition of service.”
“SiEnergy and EPCOR share a common focus on providing safe, reliable service to customers and communities,” said SiEnergy president June Dively. “We are excited for this opportunity to expand SiEnergy’s presence in metro Houston.”
“SiEnergy is a proven, high-quality natural gas utility founded in the Houston area. Our customers in Texas will benefit from SiEnergy’s substantial footprint in natural gas utilities while EPCOR continues to focus on growing its water business in the United States,” said Joe Gysel, Senior Vice President of North American Commercial Services for EPCOR.
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