Sprague Resources LP announced on Oct. 1 that its wholly owned subsidiary, Sprague Operating Resources LLC, has completed the purchase of Metromedia Gas & Power, Inc.’s natural gas marketing and electricity brokerage business assets for $22 million in cash and the assumption of liabilities under pre-existing forward supply contracts.
Sprague will now provide an additional 10,000 commercial, industrial and municipal accounts with more than 15 Bcf of annual natural gas supply, and expand its service area to include Maryland, Virginia and the District of Columbia. Sprague will also now assist more than 7,000 commercial and industrial accounts with their procurement of more than 150 Megawatts of annual power demand.
‘The acquisition of Metromedia Energy’s natural gas marketing and electricity brokerage business is an outstanding strategic addition for Sprague, strengthening our presence in core markets and expanding our geographic reach,” said David Glendon, Sprague’s president and CEO. ‘We look forward to leveraging Sprague’s extensive supply capabilities across a larger customer base and continuing our successful growth by providing more customers with solutions for managing their energy requirements. We expect the transaction to be immediately accretive for unitholders and support future distribution growth.”