Alliant Gas Enters Agreement to Acquire SemStream Arizona, LLC
Irving, Texas, October 29, 2012 – Alliant Gas, LLC, (“Alliant”), a wholly owned subsidiary of Pinnacle Propane (“Pinnacle”) and JP Energy Partners (“JP Energy”), has entered into a definitive agreement to acquire SemStream Arizona, LLC (“SemStream”). Pinnacle is a leading distributor of propane in the south and southwest United States. This transaction will expand Alliant’s portfolio of central distribution systems, Alliant currently services 27 communities in Texas.
The transaction is subject to approval by the Arizona Corporation Commission and will close shortly after approval is granted.
Chris Hill, President of Pinnacle Propane and Alliant Gas, commented on the acquisition, “As we continue to execute our strategy to grow propane operations, this transaction will expand our footprint and provide additional markets to grow our business. We will continue SemStream Arizona’s commitment to providing excellent customer service while making safety the top priority. We believe long term value is built by delivering safety and service at a fair price.”
Rob Chalmers, SVP of Business Development added, “The addition of SemStream Arizona will further solidify our position as one of the leading retail propane operators in the southern United States. In addition, as we continue to aggressively expand our propane operations, this acquisition will facilitate our western expansion.”
Alliant anticipates all of SemStream Arizona’s employees will continue after the transaction and the company will continue to operate as it has in the past with a focus on safety and customer service.
SemStream Arizona is a full service propane company offering service to over 11 thousand customers in Payson and Page Arizona through its regulated central distribution systems and non-regulated delivery of propane to commercial and residential customers.
JP Energy Partners was formed in 2010 to focus on developing a platform of assets to provide integrated refinery services. JPE currently owns these assets through its subsidiaries Pinnacle Propane, JP Crude Oil Services and JP Refined Products. The ownership and management team of JP Energy Partners bring extensive experience and a history of success in the energy business. Additional information about JP Energy Partners, Pinnacle Propane and Alliant Gas can be found at www.jpenergypartners.com, www.pinnpropane.com and www.alliantgas.com.
SemStream Arizona offers underground utility and tank propane deliveries in the Page and Payson area. The company’s customers receive their propane delivered through metered underground systems or with leased tanks and metered-tank service. Currently between 11,100 to 11,700 customers are served in Payson, Pine, Strawberry and many other areas around Northern Gila County, and in and around Page in Coconino County. Additional information about SemStream Arizona can be found at www.semstreamarizona.com.
Posted: October 26, 2012