UGI Utilities, Inc., a wholly owned subsidiary of UGI Corporation (NYSE: UGI), has entered into a definitive agreement to sell its Electric Division to funds managed by Argo Infrastructure Partners LP, a mid-market manager of essential infrastructure and utility assets. The transaction, announced on April 28, 2026, marks a strategic shift for UGI as it hones in on its core natural gas business while placing its electric customers and employees under the stewardship of an experienced infrastructure operator.
Argo Infrastructure Partners, founded by Jason Zibarras, brings deep experience in supporting regulated utilities. This acquisition represents Argo's 20th investment and its fourth utility investment in Pennsylvania, underscoring its commitment to the Commonwealth. The deal is expected to bring expanded capital investment and long-term infrastructure management expertise to a growing region within Pennsylvania. For more details on Argo's investment philosophy and portfolio, visit www.argoip.com.
UGI Utilities serves over 760,000 customers across Pennsylvania and Maryland, providing natural gas and electric services. By divesting its electric operations, UGI aims to streamline its focus on natural gas distribution and related energy solutions. The company's parent, UGI Corporation, is a distributor and marketer of energy products and services in the U.S. and Europe, offering solutions that include natural gas transmission, electric generation, propane distribution, and renewable natural gas. Additional information about UGI Utilities is available at www.ugi.com.
The transaction is subject to regulatory approvals and customary closing conditions. Upon completion, Argo will assume ownership and operation of UGI's electric utility assets, ensuring continuity of service for customers and providing opportunities for infrastructure upgrades. This move aligns with Argo's focus on essential services and sustainable investing, as the firm manages over $7.5 billion in assets as of March 2026.
The sale highlights a trend of utility companies optimizing their portfolios to concentrate on core operations. For UGI, this means doubling down on natural gas, which remains a key component of the energy transition. For Argo, it represents a strategic addition to its growing portfolio of regulated utilities in Pennsylvania, a state with significant energy needs. The implications for customers include potential improvements in grid reliability and investment in modern infrastructure, backed by Argo's long-term investment horizon.
For further information about UGI Corporation, visit www.ugicorp.com. Media inquiries can be directed to John Mason at (610) 334-7135 or jmason@ugi.com.
