Northwest Natural Holdings announced an agreement to acquire SiEnergy Operating, LLC from SiEnergy Capital Partners, LLC for $273 million in cash and the assumption of $152 million of debt. SiEnergy is a rapidly growing natural gas distribution utility serving approximately 70,000 residential and commercial customers in the high-growth metropolitan areas of Houston, Dallas, and Austin, Texas.
The transaction is expected to close in the first quarter of 2025. SiEnergy has a contracted customer backlog of over 180,000 and is projected to have a rate base of approximately $247 million by December 31, 2024. The company achieved compounded annual rate base and customer growth of 26% and 22%, respectively, over the last five years ending in 2024.
This acquisition is expected to support NW Natural Holdings' long-term EPS growth outlook of 4% to 6%. The company plans to finance the cash portion of the acquisition with junior subordinated notes in the first half of 2025, without issuing common equity to directly fund this transaction. NW Natural Holdings reaffirmed its 2024 EPS guidance in the range of $1.94 to $2.14 on a GAAP basis or $2.20 to $2.40 on a non-GAAP Adjusted Basis.
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