Regency closes merger with PVR Partners

Regency Energy Partners LP

Regency Energy Partners LP (NYSE: RGP) and PVR Partners LP (NYSE: PVR) have closed Regency’s acquisition of PVR. Regency acquired all of PVR’s outstanding units for a total purchase price of approximately $5.6 billion (based on Regency’s closing price of $26.70 per unit on March 20), including approximately $1.8 billion of assumed debt.

In the merger, PVR unitholders received (on a per unit basis) 1.020 Regency common units and a one-time cash payment of $0.262 per unit (representing the difference between PVR’s annualized quarterly distribution immediately prior to the merger and 1.020 times Regency’s annualized quarter distribution immediately prior to the merger).

The PVR assets include a network of natural gas midstream pipelines and processing plants located principally in the Marcellus and Utica shale plays in Appalachia and in the Granite Wash in the US Mid-Continent region—as well as coal and natural resource properties located in the Appalachian, Illinois, and San Juan basins, which are leased to operators in exchange for royalty payments.

The merger creates a fully integrated midstream partnership platform by further expanding Regency’s position in the Granite Wash in the Mid-Continent and adding a strong geographic footprint in the Marcellus and Utica shale plays in the Appalachia Basin.

Effective with the closing of the market yesterday, PVR ceased to be a publicly traded company and its common stock discontinued trading on the New York Stock Exchange.


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