This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Penn Virginia Resource Partners LP Management Discusses Q2 2012 Results - Earnings Call Transcript

In the Midcon Midstream segment, adjusted EBITDA was down $4.7 million from 2011. The decrease is almost entirely NGL price related as volumes were up on average 31 million cubic feet a day from 2011. What we're finding in the Midcon area is that activity levels are still high, producers are not backing off from the drilling plans but current NGL pricing especially the S.A. [ph] and the Conway [ph] is very low.

In the Eastern Midstream segment, adjusted EBITDA was up $12.5 million from 2011 to $17.2 million as a result of a Chief acquisition as well as what we're calling our legacy Lycoming County system. Volumes were 344 million cubic feet a day versus 38 million cubic feet a day last year, a substantial increase in activity. We closed the Chief acquisition on May 17, and we're very pleased with the integration of the operations and with the prospects in front of us as a result of this acquisition and the continued development of our Lycoming County system, the system that we entered the Marcellus with anchored by Range Resources. Today we're looking at 50-plus wells in both Lycoming and Wyoming County that has been drilled, completed and frac-ed waiting on us to hook them up, and we're diligently working on doing just that. As importantly, drilling activity continues to exceed our expectations in the Marcellus. And we're very, very thankful for that of course.

The current gas pricing in the strip are helping for sure, and so we expect to see that drilling activity continue throughout the year. We continue to expand our system in Lycoming County, batched up by our agreements with Southwest Energy, Range and an affiliate of Shell. This project, announced after the Chief acquisition, extends both the gas and the water pipelines beyond Phase 2 and will be online in the fourth quarter of this year, at which time we will bring incremental volumes onto the system.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs