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