NW Natural Signs Agreement to Sell Gill Ranch Storage LLC
23 June 2018 - 8:15AM
NW Natural (NYSE:NWN) today announced that NW Natural Gas Storage
has entered into an agreement to sell its wholly-owned subsidiary
Gill Ranch Storage LLC to SENSA Holdings LLC (SENSA), an investment
partnership led by eCorp Storage.
Gill Ranch Storage owns a 75% undivided interest in the Gill
Ranch facility, located outside of Fresno, California, amounting to
approximately 15 Bcf of underground natural gas storage capacity.
The remaining interest in the facility is owned by Pacific Gas
& Electric (NYSE:PCG).
The transaction follows a comprehensive review process that
concluded Gill Ranch was no longer core to the company’s strategy.
“This sale is consistent with our strategy of focusing on
predictable, low‑risk cash flows for our investors through
primarily regulated utility businesses,” said David H. Anderson, NW
Natural president and CEO. “We look forward to working with SENSA
and the eCorp team through the transition period.”
NW Natural Gas Storage will continue to provide management
services to the Gill Ranch facility for up to 18 months after the
transaction closes under a transition services agreement. All Gill
Ranch facility personnel are expected to remain in their current
capacity.
ECorp Storage and its affiliates have been involved in the
development and operations of 13 natural gas storage facilities in
the U.S. and globally since 1985. “We look forward to continuing NW
Natural’s excellent track record of safety and reliability at the
Gill Ranch facility,” said John Thrash, chairman and co-founder of
eCorp.
The sale is subject to certain closing conditions, including
approval by the California Public Utility Commission, a right of
first refusal that can be exercised by PG&E until August 4,
2018, and other usual and customary closing conditions. The sale is
expected to be final in 2019.
BofA Merrill Lynch served as exclusive financial advisor and
Stoel Rives LLP served as legal advisor to NW Natural Gas Storage
on the transaction. Orrick, Herrington & Sutcliffe LLP served
as legal advisor to SENSA.
ABOUT NW NATURAL NW Natural (NYSE:NWN) is
headquartered in Portland, Ore. The 159-year-old regulated natural
gas utility serves Oregon and southwest Washington with one of the
most modern distribution and transmission pipeline systems in the
nation. It is the largest stand-alone local gas distribution
company in the Pacific Northwest with over 740,000 customers,14,000
miles of pipeline infrastructure, and $3 billion in total assets.
NW Natural and its subsidiaries also own and operate 16 Bcf of
underground gas storage capacity primarily for utility customers in
Oregon. Additional information is available at nwnatural.com.
Investor Contact: Nikki Sparley, 503-721-2530, nikki.sparley@nwnatural.com
Media Contact: Melissa Moore, 503-220-2436, Melissa.moore@nwnatural.com
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