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HAMPTON, N.H. - Unitil Corporation (NYSE:UTL), a provider of electric and natural gas energy with a market capitalization of $937 million and a strong track record of maintaining dividend payments for 41 consecutive years, has announced a definitive agreement to purchase Maine Natural Gas Company from Avangrid Enterprises, Inc. According to InvestingPro data, the company has demonstrated resilience with a beta of 0.59, indicating lower volatility compared to the broader market. The transaction, valued at $86 million on a debt-free basis, is expected to be finalized by the end of 2025, pending approval from the Maine Public Utilities Commission.
Maine Natural Gas, which began operations in 1999, currently serves about 6,300 residential and commercial customers in nine communities within the Greater Portland area and the city of Augusta. The company’s infrastructure encompasses roughly 230 miles of distribution mains. With an estimated rate base of $69 million as of December 31, 2024, and an average annual customer growth rate of 4.4% over the past five years, Maine Natural Gas is positioned for continued expansion. Unitil’s own financial metrics show promise, with InvestingPro reporting a healthy gross profit margin of 39.7% and a dividend yield of 3.12%.
The acquisition will make Maine Natural Gas a wholly owned subsidiary of Unitil and is projected to enhance Unitil’s earnings over the long term, aligning with its 5% to 7% earnings per share growth target. This move follows Unitil’s recent acquisition of Bangor Natural Gas Company and will extend its service reach to areas representing over 40% of Maine’s total population.
Unitil’s Chairman and CEO, Thomas P. Meissner, Jr., stated that Maine Natural Gas is highly complementary to Unitil’s existing operations and praised the company’s commitment to providing safe and affordable energy. He emphasized the shared focus on high-quality service and local management in serving Maine communities.
To finance the acquisition, Unitil has secured committed debt financing from Scotiabank and has received advisory services from both Scotiabank and the law firm Dentons.
Unitil Corporation, headquartered in New Hampshire, serves approximately 109,400 electric customers and 97,600 natural gas customers across New England. The company prioritizes safe and reliable energy delivery and is actively involved in the communities it serves.
This press release includes forward-looking statements subject to risks and uncertainties that could cause actual results to differ from projected outcomes. These risks include regulatory approvals, financing arrangements, integration challenges, and various factors affecting energy demand and prices. Unitil does not intend to update these forward-looking statements unless required by law. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with additional ProTips and detailed financial metrics, including exclusive Fair Value calculations and health scores, available in the Pro Research Report for UTL, one of over 1,400 stocks covered in depth.
The information in this article is based on a press release statement from Unitil Corporation.
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