Black Hills Corp signed an agreement today to buy gas transmission and distribution utility assets from MGTC Inc. The latter is a certificated public gas utility in Wyoming and Anadarko Petroleum Corporation's wholly owned subsidiary, according to The Wall Street Transcript (TWST).
Under the terms of the acquisition deal, Black Hills will buy the said Wyoming assets for $6 million. The deal is subject to customary closing revisions. The purchase target currently serves around 400 clients in northeastern Wyoming. The transaction is expected to close by the end of 2014, the report detailed.
Black Hills plans to operate the MGTC system as a new division of Cheyenne Light, Fuel & Power, which is the Cheyenne electric and natural gas utility of the corporation. The assets to be acquired will be rebranded as Black Hills Energy, the report said.
The inked deal includes the purchase of the gas transmission and distribution utility assets of MTGC in northeastern Wyoming, across portions of Johnson, Converse, Campbell, Weston, and Crook counties, TWST reported.
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