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Tuesday, April 10, 2012

Penn Virginia Resource eyes big customers with $1 billion deal, (NYSE: PVR)

Penn Virginia Resource Partners LP said it will purchase pipeline company Chief Gathering LLC for $1 billion to expand its footprint in the gas-rich Marcellus Shale, a low-cost natural gas production area in the United States.Oil and gas production from shale formations in the United States has surged in the recent years, with companies scrambling to build infrastructure despite decade-low prices for natural gas.Chief Gathering has six natural gas gathering systems serving over 300,000 acres in Pennsylvania and West Virginia that form part of the Marcellus Shale, one of the largest gas fields discovered in the United States.As of February 2012, volumes on the gathering systems were about 235 millions of cubic feet per day (mmcfd).

Penn Virginia Resource Partners, L.P. (the Partnership) is a limited partnership that is principally engaged in the management of coal and natural resource properties and the gathering and processing of natural gas in the United States. Shares of PVR traded higher by 12.52% or $2.8/share to $25.16. In the past year, the shares have traded as low as $20.85 and as high as $28.31. On average, 404871 shares of PVR exchange hands on a given day and today's volume is recorded at 1653285.



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