SemStream, L.P. announced its acquisition today of all of the
propane assets of Energy West (Nasdaq:EWST) that are located in
Arizona. SemStream's intention to purchase the assets was initially
announced in July 2006. It was approved by the Arizona Corporation
Commission on March 20, 2007, and has an effective date of April 1,
2007. The acquisition is SemStream's first in Arizona.
Larry Payne, SemStream president and chief operating officer,
said, "These tremendous assets complement SemStream's strong supply
and marketing presence in the Southwest. We are very pleased to own
assets in Arizona and look forward to serving more than 10,000
customers there."
Payne said the business will be renamed SemStream Arizona Propane
and the 21 people who previously worked for Energy West will become
SemStream employees.
The acquisition adds to SemStream's asset base a regulated
underground pipeline system with 170 miles of pipe and approximately
300,000 gallons of bulk storage and related assets. The assets serve
approximately 7,500 regulated customers in the Arizona communities of
Payson, Pine and Strawberry. The acquisition also includes unregulated
propane assets used in propane sales to rural areas adjacent to those
communities. The unregulated business serves approximately 2,800
additional customers.
SemStream, L.P., a subsidiary of SemGroup, L.P., is a North
American midstream business providing natural gas liquids (NGL)
supply, marketing, storage and terminal services through 11 privately
owned propane terminals. It is one of the largest private propane
terminal operators in the industry and is a major shipper on all six
North American NGL common carrier pipelines. The company is based in
Tulsa, Oklahoma.