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Thursday, February 28, 2013

Regency to purchase Southern Union Gathering's pipeline affiliate for $1.5 bln, (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.

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 fell by 0.42% or $-0.1/share to $23.75. In the past year, the shares have traded as low as $20.58 and as high as $26.54. On average, 563616 shares of RGP exchange hands on a given day and today's volume is recorded at 259001.