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 (Argo), a mid-market manager of essential infrastructure and utility assets. The announcement was made jointly from Valley Forge, PA and New York, NY on April 28, 2026.
The transaction sharpens UGI's focus on its core natural gas business while placing Electric Division customers and employees into the hands of Argo, a committed and experienced infrastructure operator with deep experience supporting regulated utilities. 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.
UGI Utilities serves more than 760,000 customers throughout Pennsylvania and Maryland as a natural gas and electric utility company. By divesting its electric operations, UGI can concentrate resources on its natural gas distribution and other energy services, which align with its broader strategy under UGI Corporation. UGI Corporation is a distributor and marketer of energy products and services in the U.S. and Europe, offering safe, reliable, affordable, and sustainable energy solutions through subsidiaries involved in natural gas transmission and distribution, electric generation and distribution, midstream services, propane distribution, renewable natural gas generation, and energy marketing services.
Argo Infrastructure Partners, founded by Jason Zibarras, is an independent fund manager with a long-term approach to infrastructure investing. The firm invests in high-quality mid-market infrastructure businesses and assets that provide essential services to their communities over long operational lives, including utilities, renewable energy, digital infrastructure, and other long-duration assets. Argo's investment philosophy couples sound investment return with responsible and sustainable investing. As of March 2026, Argo manages over $7.5 billion in assets.
The sale is significant for the electric utility customers in Pennsylvania, as they will benefit from Argo's dedicated focus and capital investment in the region. For UGI, the deal allows the company to streamline operations and enhance its natural gas business, potentially leading to improved service and growth in its core areas. Industry observers may view this as a strategic move reflecting broader trends in the utility sector, where companies increasingly specialize to improve efficiency and meet evolving energy demands.
More information about UGI Utilities, Inc. is available at www.ugi.com. Details about Argo Infrastructure Partners can be found at www.argoip.com. For UGI Corporation, visit https://www.ugicorp.com.
