UGI Utilities, Inc., a 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, as announced on April 28, 2026. The sale marks a strategic shift for UGI, allowing it to concentrate on its core natural gas business while placing electric customers and employees under the management of an experienced infrastructure operator.
Argo Infrastructure Partners, a mid-market manager of essential infrastructure assets, will acquire UGI's Pennsylvania electric utility operations. This transaction represents Argo's 20th investment overall and its fourth utility investment in Pennsylvania. The firm brings expanded capital investment and long-term infrastructure management experience to the region, which is experiencing growth within the Commonwealth.
For UGI, the divestiture sharpens its focus on natural gas distribution and related energy services. UGI Utilities currently serves more than 760,000 customers across Pennsylvania and Maryland, with the Electric Division being a portion of that customer base. The sale proceeds will likely be redeployed into UGI's natural gas and other energy businesses, aligning with the company's strategy to prioritize its core operations.
Argo Infrastructure Partners, founded by Jason Zibarras, manages over $7.5 billion in assets as of March 2026. The firm invests in utilities, renewable energy, digital infrastructure, and other long-duration assets, focusing on providing essential services to communities. This acquisition aligns with Argo's philosophy of coupling sound investment returns with responsible and sustainable investing.
The impact on customers of UGI's Electric Division is expected to be positive, as Argo has a track record of supporting regulated utilities with capital investment and operational expertise. Employees will transition to a company dedicated to infrastructure management, potentially offering new growth opportunities. For the broader industry, this transaction highlights ongoing consolidation and specialization in the utility sector, where companies are focusing on core businesses while selling non-core assets to dedicated operators.
UGI Corporation, listed on the New York Stock Exchange under the ticker UGI, continues to operate its natural gas transmission and distribution, midstream services, propane distribution, renewable natural gas, and energy marketing businesses in the U.S. and Europe. More information about UGI can be found at https://www.ugicorp.com. Argo Infrastructure Partners provides additional details at https://www.argoip.com.
