Pace Global

Portfolio Restructuring and Optimization for a Mid-Size Local Distribution Company

Clien Need
Client Need:
A diversified natural gas holding company was looking to optimize its asset portfolio in light of its acquisition of a Mid-Western natural gas utility.


Our Role
Our Role:
Pace Global provided commercial advisory services to a diversified natural gas holding company that owns and operates local distribution companies (LDCs) in the Midwest. Pace Global was hired to analyze the client’s historical supply decision process; evaluate its combined asset base inclusive of natural gas transportation, storage, and gas supply; forecast system supply and demand requirements; evaluate firm capacity re-contracting risk in light of increased market competition; and recommend a modified asset mix (inclusive of gas supply portfolio options) based on a forward view of gas prices.


Results
Results:
Pace Global worked collaboratively with the client to refine its asset portfolio and gas supply options, including assisting with the final selection of assets, implementation and integration planning, and the securing of approvals from the client’s Board, the Public Utility Commission, and other key stakeholders. The client depended on Pace Global’s commercial and technical experience to evaluate and identify the most reliable and economical set of assets (both new and existing) that would meet its strategic needs as the U.S. natural gas market continues to undergo near-unprecedented change due to shale gas development and the associated transformation of North American infrastructure.

Pace Global