RADNOR, Pa., May 21, 2012 /PRNewswire/ -- Penn Virginia Resource Partners, L.P. (NYSE: PVR) ("PVR") today announced that its midstream subsidiary has entered long-term agreements to extend its natural gas pipeline in Lycoming County, Pennsylvania and provide various gathering, compression and related services to four Marcellus Shale natural gas producers in northeast Pennsylvania. The agreements with a Royal Dutch Shell (NYSE: RDS.A) subsidiary, SWEPI LP, ("Shell"), affiliates of Southwestern Energy Company ("Southwestern") (NYSE: SWN), Range Resources Corporation ("Range") (NYSE: RRC), and privately-held Inflection Energy LLC ("Inflection"), are all fee-based with no direct commodity price risk.
William H. Shea, Jr., Chief Executive Officer of PVR's general partner, said, "We are extremely pleased to announce these fee-based producer agreements and our plans for the continued build-out of our Lycoming County pipeline system. The further expansion of PVR's Lycoming County system, ultimately with a connection to the Tennessee Gas Pipeline 300, will allow us to realize our long-term vision of providing our Marcellus producers with access to multiple gas markets and further expand our midstream business in the Marcellus Shale. We are gratified that, based on our demonstrated record of responsive and reliable performance, these recognized companies, all with a commitment to the long-term development of the Marcellus Shale, have entrusted us to meet their midstream service requirements."
"We believe that the continued development of our Lycoming County system, together with our Wyoming County system and the recently completed addition of Chief Gathering LLC's midstream assets, position PVR as the midstream service provider of choice in six of the most prolific counties in the Marcellus Shale region in northeast Pennsylvania," concluded Mr. Shea.Under the agreements with Southwestern, Shell and Range, PVR will extend its existing 30-inch trunkline approximately 19 miles north through Lycoming County and into Tioga County, Pennsylvania. Construction of Phase III of the trunkline is expected to begin within two weeks and be completed in the fourth quarter of 2012. PVR will also construct lateral pipelines for Shell and Range to bring gas from the wellheads to the trunkline for transport to the Transcontinental Pipeline ("Transco") and, by early 2014, to the Tennessee Gas Pipeline 300 ("TGP"). The 15-year agreement with Southwestern provides for a firm take-or-pay capacity commitment in years two through eight, with an option to increase that commitment during this period. The agreement also provides Southwestern with interruptible capacity subject to availability.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV