Kentucky approves sale of Delta Natural Gas to PNG
The Kentucky Public Service Commission (PSC) recently approved the sale of Delta Natural Gas Co., the smallest of Kentucky’s five major local natural gas distribution companies, to PNG Companies LLC.
Delta Natural Gas Co. is based in Winchester, Kentucky and serves approximately 39,000 customers in
23 counties in eastern and central Kentucky.
PNG is based in Pittsburgh and serves approximately 700,000 customers through its systems in
Pennsylvania, West Virginia and Kentucky. It also operates People’s Gas KY, a farm tap system that
serves 2,950 customers in 10 eastern Kentucky counties.
The approval is subject to 43 conditions, including continuing to operate under the Delta name and remain headquarter in Winchester. PNG must also maintain current service levels to Delta customers, continue Delta’s assistance to low-income customers. Costs associated with the acquisition may not be passed on to Delta customers.
The sales will include the purchase of all outstanding Delta stock. At a price of $30.50 and approximately 7.13 million outstanding shares, the transaction is valued at approximately $217.5 million. The sale includes three Delta affiliates that are not regulated by the PSC.
Upon completion of the sale, Delta will become a wholly owned subsidiary of PNG.
