Penn Virginia Resource Partners, L.P. has announced a definitive agreement to acquire Chief Gathering LLC for $1 billion in cash and equity.
Chief Gathering, which is owned by Chief E&D Holdings LP, is a midstream pipeline company with operating assets serving Marcellus Shale natural gas producers primarily in northeastern Pennsylvania. The transaction, when closed, will result in a major expansion of PVR’s pipeline systems in the gas-rich Marcellus Shale. Affiliates of Riverstone Global Energy and Power Fund V, and a group of investors co-led by Kayne Anderson Capital Advisors and Magnetar Capital, have committed to acquire Penn Virginia limited partnership interests, the proceeds of which Penn Virginia expects to use to help finance the cash portion of the transaction. The transaction is expected to close in the second quarter of 2012. Latham & Watkins LLP is advising Riverstone Holdings, LLC in the transaction with a corporate team led by New York mergers and acquisitions partners Charles Carpenter and Eli Hunt with associate Michael Shaheen. Advice was also provided by Houston tax partner Tim Fenn, Washington, D.C. tax partner Cheryl Coe and Houston tax associate Victoria Louie; Washington, D.C. private equity finance partner Barton Clark; and New York antitrust partner Bruce Prager.
