Why Regency Energy Is buying PVR Partners LP (NYSE:PVR)

Posted by Kristi Scott October 11, 2013 0 Comment 664 views

Regency Energy, the natural-gas pipeline operator announced that it will acquire PVR Partners LP (NYSE:PVR) for $5.6B. This amount includes $1.8B in debt. The former is seeking to expand its presence in the Utica and Marcellus shale fields that are located in the Mid-Atlantic. Post this news, PVR Partners LP (NYSE:PVR) shares surged by 12.89% while Regency dipped by 8.6%. Similar news in the same field is that Crestwood which is another pipeline company is acquiring Arrow Midstream, a privately held company, for $750M. This will make Crestwood one of the largest storage and pipeline players in the Bakken Shale.

Thursday’s trading

In Thursday’s trading, PVR Partners LP (NYSE:PVR) rose by 12.89%. The opening price of the shares was $26.05, which climbed to an intraday high of $26.54 and dipped to a close of $25.75. Approximately 8.31 million shares were traded on Thursday while an average volume of 0.431 million shares were traded over a 30 day period. The 52-week low of PVR Partners LP (NYSE:PVR) shares is $21.87 and its 52-week high is $29.26. The company has a market capitalization of $3.32 billion.

About the company

PVR Partners LP (NYSE:PVR) is involved in gathering and processing natural gas. It is also engaged in managing coal and natural-resource properties in the U.S. It operates in 3 different business segments: 1) Eastern Midstream, 2) Mid-continent Midstream and 3) Coal and Natural Resource Management. On 17 May 2012, PVR Partners LP (NYSE:PVR) completed the acquisition of membership interests of the Chief Gathering LLC.

The company’s Midstream segment is involved in providing natural-gas gathering, as well as other related services in West Virginia and Pennsylvania. The Mid-continent Midstream segment is involved in providing natural-gas processing, gathering-services, as well as other related services. The company’s Coal and Natural Resource Management section is mainly involved in the management & leasing of coal-properties as well as the subsequent royalties’ collection.

About Kristi Scott

Kristi Scott joined GDP Insider in 2005 as a Wall Street reporter for the Business and Market section. Kristi covers the stock market, financial markets and personal finance. Her awards have come from the National Federation of Professional Writers, the Ohio Newspaper Association, the Cleveland Press Club, the Society of Professional Journalists and Suburban Newspapers of America. Kristi was named SNA's national Journalist of the Year

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