RADNOR, Pa., June 8, 2011 /PRNewswire/ -- Penn Virginia Resource Partners, L.P. (NYSE: PVR) ("PVR") today announced the acquisition of a natural gas gathering system and processing facility in the Texas panhandle area. The "Antelope Hills" assets acquired by PVR consist of a 20 MMcf/d cryogenic processing facility and an approximate 15-mile gathering system in Lipscomb and Hemphill Counties. The acquired assets, which are connected to PVR's existing Panhandle Systems, are strategically located to serve active producers in the Granite Wash formation. The purchase price for the acquired assets was $11.44 million.
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This acquisition is an integral part of a larger PVR Panhandle Systems expansion plan which will involve the expansion of the Antelope Hills processing facility to a new total capacity of 70 MMcf/d, as well as additional gathering system enhancement and optimization. The planned expansion will involve an additional investment of approximately $35 million over the next twelve months, and will increase PVR's Panhandle total processing capacity to 330 MMcf/d.
William H. Shea, Jr., Chief Executive Officer of PVR, said, "PVR is pleased to announce these strategic asset acquisitions and growth opportunities. The Antelope Hills plant acquisition provides some immediate relief to current capacity constraints in our Texas Panhandle operations, and the plant expansion project will support the expected continuing growth in volumes from the active drilling programs by producers in our footprint in the Granite Wash. We currently anticipate the Antelope Hills plant expansion to be completed and in operation in the second quarter of 2012."
Penn Virginia Resource Partners, L.P. (NYSE: PVR) is a publicly traded limited partnership which owns and manages coal and natural resource properties and related assets, and owns and operates midstream natural gas gathering and processing businesses. We own more than 800 million tons of proven coal reserves in Northern and Central Appalachia, and the Illinois and San Juan Basins; our midstream natural gas assets are located principally in Texas, Oklahoma and Pennsylvania and include more than 4,200 miles of natural gas gathering pipelines and 7 processing systems with approximately 420 million cubic feet per day of capacity. For more information about PVR, visit our website at www.pvrpartners.com.
This press release includes "forward-looking statements" within the meaning of federal securities laws. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Partnership's ability to control or predict, which could cause results to differ materially from those expected by management. Such risks and uncertainties include, but are not limited to, regulatory, economic and market conditions, the timing and success of business development efforts and other uncertainties. Additional information concerning these and other factors can be found in our press releases and public periodic filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2010 and our most recently filed Quarterly Reports on Form 10-Q. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Contact: | Stephen R. Milbourne | |
Director - Investor Relations | ||
Phone: 610-975-8204 | ||
E-Mail: invest@pvrpartners.com | ||
SOURCE Penn Virginia Resource Partners, L.P.
