Regency Energy To Buy Pipeline Assets In Texas For $1.6 B

Reuters

Regency Energy Partners LP, owned by billionaire Kelcy Warren's Energy Transfer Equity LP, said it would buy pipeline and related assets for about $1.6 billion to take advantage of soaring crude production in Texas.

The pipeline operator plans to buy assets in the Texas Panhandle from Eagle Rock Energy Partners for $1.3 billion and assets in the Delaware basin from Hoover Energy Partners for $290 million.

Eagle Rock's shares jumped as much as 17 percent to $6.17 on the Nasdaq on Monday. Regency shares rose 12 percent to $27.21 on the New York Stock Exchange.

"(The deal) is a great Christmas present for EROC unitholders," Robert Baird & Co analyst Ethan Bellamy said.

Massive growth in output from shale fields has led to a shortage of pipelines that can move crude oil to refining hubs.

Natural gas that is produced along with the oil needs to be processed and this has raised the premium for facilities owned by infrastructure companies.

Texas, home to the Permian Basin and the Eagle Ford shale field, is particularly lucrative for pipeline operators.


123

View Full Article

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Sales Manager - Safety Relief Valves
Expertise: Business Development|Sales
Location: Houston, TX
 
Staff Auditor 2
Expertise: Business Analyst|Risk Management
Location: TX
 
United States Conroe: Product Champion
Expertise: Business Development|Marketing|Sales
Location: Conroe, TX
 
search for more jobs

Brent Crude Oil : $51.33/BBL 1.14%
Light Crude Oil : $48.37/BBL 1.34%
Natural Gas : $3.1/MMBtu 1.63%
Updated in last 24 hours