Radnor company selling Texas natural gas system

Posted: June 19, 2012

Penn Virginia Resource Partners L.P., of Radnor, said Monday it is selling a natural gas pipeline and processing system in east Texas for $63 million to redeploy the capital to "higher-return organic growth projects" elsewhere, including the Marcellus Shale region.

PVR said it is selling its Crossroads natural gas gathering system in Harrison County, Texas, to DCP Midstream Partners L.P. The system includes pipelines and an 80 million cubic-feet-per-day processing plant, which recovers valuable gas liquids. The transaction, which is expected to close July 2, will result in a gain of between $30 million and $33 million.

William H. Shea Jr., chief executive of PVR's general partner, said the assets were no longer strategic to the company's mission, which is focused on natural gas development in Pennsylvania's Marcellus Shale and the Panhandle region of Texas and Oklahoma.

– Andrew Maykuth

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