SiEnergy Operating, a wholly owned subsidiary of Northwest Natural Holding Co., and EPCOR USA Inc. have announced an agreement under which SiEnergy will acquire 100% of the capital stock of Hughes Gas Resources Inc. for $60 million. The transaction is expected to close in the second quarter of 2025, pending regulatory approvals and customary closing conditions.

The acquisition includes all assets of EPCOR Texas Gas, which serves approximately 6,900 metered connections across 353 miles of pipeline in 12 communities northeast of Houston. EPCOR has owned and operated the system since 2017. The rate base of the acquired utility is projected to be about $46 million by the end of 2025.

“This acquisition aligns with our strategy to expand and diversify our utility portfolio in Texas,” said Justin Palfreyman, president and CEO of NW Natural Holdings. “Hughes has followed a growth path similar to SiEnergy by supporting infrastructure for residential and commercial developments in rapidly expanding areas around Houston. EPCOR Texas Gas represents a strong strategic fit.”

John Elford, president and CEO of EPCOR Utilities Inc., said the sale is part of a broader plan to refocus the company’s Texas growth efforts on water services.

“This transaction is a strategic decision for EPCOR USA as we pivot toward expanding our water utility operations in Texas,” Elford said. “SiEnergy brings scale and deep experience in natural gas operations, which will benefit both our customers and transitioning employees. We look forward to a smooth and collaborative handoff.”

June Dively, president of SiEnergy, emphasized the cultural and operational alignment between the two companies.

“SiEnergy and EPCOR both prioritize safe, reliable service to customers and communities,” Dively said. “This acquisition represents an exciting opportunity to further grow SiEnergy’s presence in the greater Houston area.”

Joe Gysel, senior vice president of North American commercial services for EPCOR, also voiced confidence in the deal’s benefits.

“SiEnergy is a well-established, high-quality natural gas utility with deep roots in the Houston region,” Gysel said. “We are confident our customers will be well served by SiEnergy’s capabilities, while EPCOR continues to build its U.S. water utility business.”

The deal supports both companies’ long-term strategic goals—SiEnergy’s expansion in the Texas gas market and EPCOR’s focused growth in water infrastructure.

Northwest Natural Holding Co., based in Portland, Oregon, has been in operation for more than 166 years. The company owns a portfolio of businesses, including Northwest Natural Gas Co., SiEnergy Operating (SiEnergy), NW Natural Water Co. (NW Natural Water), NW Natural Renewables Holdings (NW Natural Renewables), along with other affiliated interests.