Access to funds An important factor in the frenzy of M&A (mergers and acquisitions) activity in the midstream MLP space has been the ease of access to funds. Master limited partnerships (MLPs) generally don’t keep much cash on their balance sheet, as with the MLP structure, the majority of excess cash flow is paid out […]
Gas prices may be low now, but long-term gas drilling is here to stay in North America Currently, natural gas prices are relatively depressed, and short-term natural gas drilling activity on the whole doesn’t appear to be rising (see Why natural gas rigs aren’t likely to rise much through year-end). However, Regency’s purchase of PVR […]
PVR’s asset footprint complements Regency’s Regency management stated that PVR’s assets complemented Regency’s existing portfolio. While Regency’s existing assets are concentrated in the Eagle Ford (South Texas), the Permian (West Texas), and the Haynesville or Cotton Valley (North Louisiana), PVR’s assets are primarily in the Marcellus (Appalachia) and Granite Wash or Mississippi Lime (Midcontinent, Oklahoma, […]
PVR’s operations and the acquisition PVR’s operations fall into three divisions. Eastern Midstream Midcontinent Midstream Coal and Natural Resource Management The Eastern Midstream division comprises a natural gas trunkline and gathering assets in the Appalachia region, with exposure to the Marcellus Shale, and potential upside to the Utica Shale. PVR notes that the revenues it […]
Regency Energy recently agreed to buy PVR Partners for a total transaction value of $5.6 billion. Learn about the transaction, what it signals, and potential risks.
