Regency Energy announces two major acquisitions
On December 23, 2013, Regency Energy Partners (RGP) announced two major transactions. Firstly, the company announced that it would purchase the midstream business of Eagle Rock Energy Partners (EROC) for ~$1.3 billion. Secondly, the company announced that it would purchase certain midstream assets from Hoover Energy (a private company) for $290 million.
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The stock responded positively, closing the day at $26.07 per share, compared to the prior day’s close of $24.19 per share. Regency Energy has been actively acquiring large assets recently, as it just announced in October that it would announce acquire publicly traded PVR Partners for $5.6 billion. In February of this year, Regency also announced that it would acquire Southern Union Gathering for $1.5 billion.
Read on to find out more about the acquisitions, how they will be financed, and how they will affect Regency Energy.