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Wednesday, February 27, 2013

Regency to purchase Southern Union Gathering's pipeline affiliate for $1.5 bln, (NYSE: ETE), (NYSE: ETP), (NYSE: RGP)

Regency Energy Partners LP said it would purchase Southern Union Gathering Company's natural gas pipeline affiliate for $1.5 billion to expand its presence in the Permian Basin in the southern United States. Regency expects the deal with the affiliate, Southern Union Company, to be neutral or add slightly to its 2013 earnings.Regency will fund the deal by issuing $750 million of common units and $150 million of Class F common units.The deal will include the purchase of a 5,600 mile (9,012 km) gathering system and about 500 MMcf/d of processing and treating facilities in west Texas and New Mexico for natural gas and natural gas liquids.Southern Union Company is a jointly owned affiliate of Energy Transfer Equity LP and Energy Transfer Partners LP. Its interstate pipelines transport natural gas from the producing areas to markets in the Southeast, Midwest and Great Lakes region.

Energy Transfer Equity, L.P. (Energy Transfer Equity) is a limited partnership company. Shares of ETE traded higher by 2.56% or $1.31/share to $52.47. In the past year, the shares have traded as low as $34.00 and as high as $52.42. On average, 624039 shares of ETE exchange hands on a given day and today's volume is recorded at 516583.

Energy Transfer Partners, L.P. (ETP) is a limited partnership in the United States engaged in natural gas operations. Shares of ETP traded higher by 1.74% or $0.82/share to $48.03. In the past year, the shares have traded as low as $40.19 and as high as $51.00. On average, 1496130 shares of ETP exchange hands on a given day and today's volume is recorded at 2087106.

Regency Energy Partners LP (the Partnership) is engaged in the gathering and processing, contract compression, treating and transportation of natural gas and the transportation, fractionation and storage of natural gas liquids (NGLs). Shares of RGP traded higher by 2.05% or $0.48/share to $23.85. In the past year, the shares have traded as low as $20.58 and as high as $26.60. On average, 566331 shares of RGP exchange hands on a given day and today's volume is recorded at 300597.



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