Feb 28 Regency Energy Partners LP said
it would buy 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.
Southern Union Company is a jointly owned affiliate of
Energy Transfer Equity LP and Energy Transfer Partners
LP. Its interstate pipelines transport natural gas from
the producing areas to markets in the Southeast, Midwest and
Great Lakes region.
JPMorgan was the financial adviser and Locke Lord LLP was
legal counsel to Regency for the deal.