- Regency Energy Partners (RGP) agrees to acquire Eagle Rock Energy Partners' (EROC) midstream business in a deal valued at $1.325B.
- RGP says the deal will complement its core gathering and processing business, and when combined with the proposed acquisition of PVR Resources, will further diversify its basin exposure in the Texas Panhandle, east Texas and south Texas.
- EROC's midstream assets include ~8,100 miles of gathering pipeline and more than 800M cf/day of processing plants, and cash flows are supported by large, long-term acreage dedications.
- Due to the expected cash flow accretion from the transaction, RGP anticipates distribution increases of 6%-8% for FY 2014.
- RGP +3.1% premarket.
Regency Energy to buy Eagle Rock's midstream business in ~$1.3B deal
Dec 23 2013, 08:31 ET