UGI Utilities Sells Electric Division to Argo Infrastructure Partners
UGI Utilities has agreed to sell its Electric Division to funds managed by Argo Infrastructure Partners, sharpening its focus on natural gas and placing customers under an experienced infrastructure operator.
UGI Utilities, Inc., a subsidiary of UGI Corporation (NYSE: UGI), announced a definitive agreement to sell its Electric Division to funds managed by Argo Infrastructure Partners LP. The move is designed to sharpen UGI's focus on its core natural gas business while transitioning electric customers and employees to a committed infrastructure operator.
Argo Infrastructure Partners, a mid-market manager of essential infrastructure and utility assets, will take over the electric utility operations. This marks Argo's 20th investment and its fourth utility investment in Pennsylvania, bringing expanded capital investment and long-term infrastructure management experience to a growing region within the Commonwealth. As of March 2026, Argo manages over $7.5 billion in assets, according to the company's website at www.argoip.com.
The transaction underscores a strategic shift for UGI Corporation, which serves more than 760,000 customers across Pennsylvania and Maryland through its natural gas and electric utility operations. By divesting the Electric Division, UGI can concentrate resources on its natural gas distribution, midstream services, propane distribution, and renewable natural gas initiatives. UGI's broader portfolio includes energy marketing services in both the U.S. and Europe, as detailed on its corporate site at https://www.ugicorp.com.
For Argo, the acquisition represents a continued expansion into the Pennsylvania utility market. The firm, founded by Jason Zibarras, focuses on long-term investments in high-quality mid-market infrastructure that provides essential services to communities. Its portfolio includes utilities, renewable energy, digital infrastructure, and other long-duration assets. The purchase of UGI's Electric Division aligns with Argo's investment philosophy of coupling sound returns with responsible and sustainable investing.
The implications of this deal are significant for stakeholders. Customers of UGI's Electric Division will be served by an operator that specializes in utility management and infrastructure investment, potentially leading to improved service reliability and capital improvements. Employees will transition to a company with deep experience in regulated utilities. For UGI, the sale allows it to streamline operations and focus on its natural gas business, which remains a core growth area amid the energy transition. The transaction also highlights ongoing consolidation in the utility sector as companies seek to optimize portfolios and allocate capital to strategic priorities.
UGI Utilities, Inc. is a natural gas and electric utility company serving over 760,000 customers in Pennsylvania and Maryland. Argo Infrastructure Partners is an independent fund manager with a long-term approach to infrastructure investing.