RAPID CITY, S.D. — Black Hills Corp. (NYSE:BKH) announced wEDNESDAY that the Wyoming Public Service Commission approved the acquisition of certain gas transmission and distribution utility assets of MGTC, Inc. a certificated Wyoming gas utility and an indirect, wholly owned subsidiary of Anadarko Petroleum Corporation. The transaction is expected to close by Jan. 1, 2015.
Black Hills Corp. is acquiring the MGTC assets in northeastern Wyoming for approximately $6 million. The acquired MGTC system currently serves approximately 400 customers, located in Johnson, Campbell, Converse, Crook and Weston counties in northeastern Wyoming. The acquisition includes 271 miles of transmission and 135 miles of distribution pipeline assets, with annual throughput exceeding 2.8 billion cubic feet.
"This acquisition demonstrates our continuing strategy to grow our customer base by acquiring small utilities near our existing operations," said David R. Emery, chairman, president and chief executive officer of Black Hills Corp.
Black Hills will operate the assets under the name Black Hills Energy.