Back to top

Analyst Blog

Penn Virginia Resource Partners L.P. said it has acquired a natural gas gathering system and processing facility in the Texas panhandle area for about $11.44 million. The partnership said this acquisition will form an integral part of its PVR Panhandle Systems expansion plan.

The acquired assets, located in "Antelope Hills," comprise a 20 MMcf/d cryogenic processing facility and a nearly 15-mile gathering system in Lipscomb and Hemphill Counties. These assets are already connected to Penn Virginia’s existing Panhandle Systems and are strategically located to serve active producers in the Granite Wash formation.

Penn Virginia said its Panhandle Systems expansion plan is all about expanding the Antelope Hills processing facility to a new total capacity of 70 MMcf/d, as well as additional gathering system enhancement and optimization.

The partnership estimates the expansion will require an additional investment of roughly $35 million over the next twelve months, and will increase PVR's Panhandle total processing capacity to 330 MMcf/d.

Through the current Antelope Hills plant acquisition, the partnership has gained some immediate relief to capacity constraints in its Texas Panhandle operations. The partnership also expects the plant expansion project to provide support to the continuing growth in volumes from the active drilling programs by producers in its footprint in the Granite Wash. 

Penn Virginia expects to complete the Antelope Hills plant expansion project in the second quarter of 2012, with plant operation starting around the same time.

Radnor, Pennsylvania-based Penn Virginia Resource manages coal and natural resource properties as well as natural gas gathering and processing businesses. The partnership’s coal properties are located in Central and Northern Appalachia, Illinois Basin and San Juan Basin.

The partnership owns and operates natural gas midstream assets located in Oklahoma and Texas, including six natural gas processing facilities having 400 MMcf/d of total capacity and approximately 4,263 miles of natural gas gathering pipelines.

Penn Virginia currently has a short-term Zacks #4 Rank (Sell). We maintain our long-term Neutral recommendation on the stock. On a competitive landscape, the partnership’s peers Alliance Resource Partners L.P. (ARLP - Snapshot Report) and Alliance Holdings GP L.P. (AHGP - Snapshot Report) with a short term Zacks #2 Rank, fare better than Penn Virginia.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
BANCO DO BR… BDORY 16.78 +8.05%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%