SourceGas is Now Black Hills Energy
On February 12, 2016, we completed our purchase of SourceGas, a natural gas utility serving approximately 429,000 customers in Arkansas, Colorado, Nebraska and Wyoming. SourceGas also owned a 512-mile regulated intrastate natural gas transmission pipeline in Colorado.
This acquisition fits our strategy to create value for our customers and shareholders. The complementary service territories, operational strengths and above-industry-average growth make the combined utility stronger. The combination increases our operating scale, which will help us to manage costs while continuing our commitment to providing safe, reliable service to our customers and communities. The acquisition also provides additional opportunities to grow the business as we meet customer demand for products and services.
We acquired SourceGas from investment funds managed by Alinda Capital Partners and GE Unit (NYSE:GE) GE Energy Financial Services. The purchase was approved by the utility commissions in Arkansas, Colorado, Nebraska and Wyoming.
- Overview: Why this acquisition is a great fit.
- News, Presentations & Updates: Get the latest news related to the acquisition.
- Investor Information: Looking for the official documents? Check here.
- Contact Us: Have a specific question? Reach out to us.
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Frequently Asked Questions: Answers to commonly asked questions.
Overview
We’re a utility leader with vast experience and operational excellence, and this combination builds on our more-than 130 years of utility experience. We look forward to meeting the region’s future energy needs. We’ll provide efficient energy services and partnerships that strengthen our communities through economic development initiatives, charitable contributions, sponsorships and employee involvement.
acquisition facts
Black Hills ENERGY TODAY
As a larger company, we can take advantage of the strengths of each organization to deliver valued service to customers. We’ll also continue to provide a great workplace for employees and to continuously improve to achieve industry-leading results.
- Approximately 800 communities
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Approximately 1.2 million customers
- Arkansas: 160,000
- Colorado: 262,000
- Iowa: 154,000
- Kansas: 113,000
- Montana: 40
- Nebraska: 298,000
- South Dakota: 67,000
- Wyoming: 165,000
Purchase price
- $1.89 billion
- Includes the assumption of $760 million of debt.
The purchase was approved by the utility commissions in Arkansas, Colorado, Nebraska and Wyoming.
News, Presentations & Updates
News Releases
- SourceGas is Now Black Hills Energy in Arkansas
- SourceGas is Now Black Hills Energy in Colorado
- SourceGas is Now Black Hills Energy in Nebraska
- SourceGas is Now Black Hills Energy in Wyoming
- Black Hills Corp. Completes Purchase of SourceGas
- Black Hills Corp. Announces Approval in Arkansas for Purchase of SourceGas
- Black Hills Corp. Announces Settlement Agreement in Colorado for Purchase of SourceGas
- Black Hills Corp. Receives Hart-Scott-Rodino Clearance for SourceGas Acquisition
- Black Hills Corp. To Acquire SourceGas Holdings LLC
Presentations
- Feb. 12, 2016 February Investor Meetings
- Feb. 3, 2016 Q4 2015 Earnings Presentation
- Nov. 16, 2015 Common Stock and Equity Units Offerings
- July 13, 2015 Webcast Information
- July 13, 2015 Acquisition of SourceGas Investor Presentation
Contact Us
Reach out to one of our media representatives if you have any questions.
24-hour media assistance: 866-243-9002
Jerome Nichols, director, Investor Relations
Frequently Asked Questions
Explain today’s announcement.
SourceGas is now operating as Black Hills Energy with the successful acquisition of SourceGas, a natural gas utility serving approximately 429,000 customers in Arkansas, Colorado, Nebraska and Wyoming.
The combined company now serves more than 1.2 million natural gas and electric utility customers in nearly 800 communities in eight Rocky Mountain and Midcontinent states.
Who is Black Hills Energy?
Black Hills Energy, the business name under which we operate our natural gas and electric utilities, serves 1.2 million customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. Our utilities are subsidiaries of Black Hills Corp. Black Hills Corp. (NYSE: BKH), a growth-oriented, vertically integrated energy company with a mission of improving life with energy and a vision to be the energy partner of choice, is based in Rapid City, South Dakota. The company serves 1.2 million natural gas and electric utility customers in eight states. The company’s non-regulated businesses generate wholesale electricity and produce natural gas, oil and coal. More information is available at www.blackhillscorp.com and www.blackhillsenergy.com.
Who approved the acquisition?
The acquisition was approved by the Arkansas Public Service Commission, Colorado Public Utilities Commission, Nebraska Public Service Commission and Wyoming Public Service Commission. The acquisition also cleared Hart-Scott-Rodino (HSR) anti-trust review.
How will this announcement impact SourceGas customers?
Black Hills Energy is committed to continuing to provide safe, reliable and valued natural gas service to all of our customers and communities, and making the transition as smooth as possible.
Beginning in March, the Black Hills Energy logo will replace the SourceGas logo on buildings, company vehicles, employee uniforms and more. SourceGas customers will also see the Black Hills Energy logo alongside the SourceGas logo on their bills and on the SourceGas website. A website introducing Black Hills Energy, will also provide customer information. We anticipate customers will see the Black Hills Energy logo on their bills and on the website through October 2016 until we transition customer service systems.
Why is this combination positive for SourceGas customers?
The combination of our companies forms a stronger utility and builds upon our more than 130 years of utility experience. This helps us to better meet our customers’ future energy needs, through increased scale, more efficient and cost-effective delivery of energy services and strong partnerships that strengthen our communities through economic development initiatives, charitable contributions, sponsorships and employee involvement.
Black Hills Energy is committed to our customers: their safety, their comfort and their energy budget. This is reflected in our mission: Improving life with energy.
Why is this combined organization good for existing Black Hills Energy customers?
The combination of our companies forms a stronger utility and builds upon our more than 130 years of utility experience. This helps us to better meet our customers’ future energy needs, through increased scale, more efficient and cost-effective delivery of energy services and strong partnerships that strengthen our communities through economic development initiatives, charitable contributions, sponsorships and employee involvement.
Black Hills Energy remains committed to our customers: their safety, their comfort and their energy budget. This is reflected in our mission: Improving life with energy.
How will customers be notified of this change?
Black Hills Energy wants to be sure our customers know the new name of their natural gas provider and other important information about our service. A public information plan will get the word out through television, radio, digital media, bill inserts, newsletters, newspaper advertisements and more. Black Hills also has set up a website (www.SourceGasIsBlackHills.com) to introduce Black Hills Energy to SourceGas customers.
Do customers need to change the way they pay their bill?
No. Customers should continue paying their bill to SourceGas as they've always done, using the return payment envelope in their statement, visiting the service office where they typically pay, or using their SourceGas online account.
Will SourceGas customer rates be impacted?
Customer rates will not be impacted as a result of the acquisition. The combined organization is more economical for customers as long-term rates will reflect the combined organization’s improved scale and efficiencies.
Who is paying for the rebranding?
Black Hills Energy is paying for the rebranding needed to ensure customer notification of this announcement and transition.
Will SourceGas customers’ online accounts still work?
Yes. If a customer has an online account, they can continue accessing it through the SourceGas website. The site will remain operational throughout the transition to accept payments and handle other business with us.
Have any of SourceGas phone numbers changed?
No. Customers can continue calling the 800-563-0012 customer service number.
How can customers reach Black Hills Energy?
For specific information about the transition, customers can call our customer service line at 800-563-0012, where we will be glad to answer questions.
They can also send other correspondence to:
SourceGas
655 E. Millsap Road, Suite 104
Fayetteville, AR 72703
What will happen to SourceGas’s community commitment?
Black Hills Energy has more than 130 years of community partnerships in the states it serves, and this long history will continue in our new service areas.
What will happen to the SourceGas energy efficiency rebate programs?
Black Hills Energy will honor existing SourceGas rebate programs, and SourceGas’s energy-efficiency programs will continue. Black Hills will evaluate this program, as we do with all of our programs, in the future.
What will happen to the Choice Gas Program?
The existing Choice Gas program will continue in Nebraska and Wyoming where it is currently offered. Black Hills will periodically evaluate the effectiveness of this program, as we do with all of our programs.
Will I still be able to purchase appliances through Black Hills Energy?
Yes. Under the new Black Hills Energy name, the same products and services will continue to be offered. Black Hills will periodically evaluate the effectiveness of this program, as we do with all of our programs.
Will this affect my appliance protection/repair program?
No. Under the new Black Hills Energy name, the same products and services will continue to be offered. In fact, Black Hills has a similar program, called Service Guard. Black Hills will periodically evaluate the effectiveness of both programs, as we do with all of our programs.