Bought general partner, gaining its interests in TX and OK midstream assets including 4,118 miles of gas-gathering pipelines and six natural gas processing facilities.
Coal and midstream company Penn Virginia Resource Partners LP, Radnor, Pa., (NYSE: PVR) has acquired general partner Penn Virginia GP Holdings LP (NYSE: PVG) in a deal valued at approximately $930 million.
Penn Virginia Resource issued 0.98 limited partnership unit per Penn Virginia GP limited partnership unit, totaling approximately 38.3 million units. The deal also cancels approximately 19.6 million Penn Virginia Resource limited partnership units owned by Penn Virginia GP.
Penn Virginia GP manages coal and natural resource properties and gathering and processing of gas in the U.S. Its midstream assets include owning and operating 4,118 miles of gas-gathering pipelines and six natural gas processing facilities having 400 million cubic feet per day of total capacity in Oklahoma and Texas.
Pro forma, three independent directors of Penn Virginia GP's general partner have joined the board of Penn Virginia Resource's general partner.
Tudor, Pickering, Holt & Co. Securities Inc. was advisor to Penn Virginia Resource, and Credit Suisse Securities (USA) LLC was advisor to Penn Virginia GP.
Penn Virginia Resource has midstream gas assets in Texas, Oklahoma and Pennsylvania, which include more than 4,100 miles of gas gathering pipelines and 6 processing systems with approximately 400 million cubic feet per day of capacity.
In June, E&P Penn Virginia Corp., Radnor, Pa., (NYSE: PVA) sold its 77% interest in Penn Virginia GP through a public offering.