PVR Buys Chief Gathering/Marcellus Pipelines for $1B

Calling it a “transformational transaction” for the company, Penn Virginia Resource Partners (PVR) today announced they are buying Chief Gathering for $1 billion in cash and stock. Chief Gathering is a midstream pipeline company with assets (pipelines) located mostly in northeastern Pennsylvania in the Marcellus Shale. The deal includes existing pipeline agreements with drilling heavyweights like Chesapeake, Anadarko, Statoil, Exxon Mobil and others. PVR CEO William Shea says the new combined pipeline operation for PVR will represent 75 percent of its business by the end of next year (it’s currently 40-45 percent of their business).

From the PVR press release:

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