Pipeline partnership Regency Energy Partners LP, which is controlled by Energy Transfer Equity LP, agreed to purchase PVR Partners LP for USD3.88 billion in stock. The Kely Warren controlled corporation would be the key for the expansion in natural gas transport and/or processing capabilites of Regency in the long run.
Under the transaction, PVR Holders would receive 1.02 common units of Regency for each unit owned with a one time cash payment estimated to reach USD40 million. In a joint statement, the USD28.68 per unit cash offer includes a 26% premium compared to the share prices at market close yesterday. Included in the transaction would be the assumption of nearly USD1.8 billion debt pile by Regency.
The said transaction is expected to be completed by the first quarter of 2014 would extend the operations of Regency far into the Marcellus Shale, which us the largest US shale gas basin as well as the Utica Shale in Ohio among others. This was confirmed by Regency Energy Partners CEO Michael J. Bradley.
For its part, PVR CEO William H. Shea, "The size and scope of the combined enterprise will be highly beneficial to our unitholders, offering added diversification and critical mass."
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