PVR Partners Commences Operation of Key Pipeline Serving Marcellus Shale Producers
RADNOR, Pa., Oct. 1, 2012 /PRNewswire/ -- PVR Partners, L.P. (NYSE: PVR) ("PVR") today announced it has completed construction and begun full commercial operation of its newest natural gas trunkline serving Marcellus Shale producers in north-central Pennsylvania. The 30-mile long, 24-inch diameter, 750 million cubic-feet-per-day ("MMcfd") capacity pipeline extends from northern Wyoming County southward to a new interconnection in Luzerne County with Transco's interstate pipeline system.
Commonly referred to as the "Wyoming Pipeline", the project was one of the assets under development by Chief Gathering LLC and acquired by PVR in May 2012. Funds required for the completion of the project were included in the financing executed at the time of the Chief Gathering acquisition.
PVR currently has agreements with five producers for firm and interruptible service on the Wyoming Pipeline, and anticipates entering agreements with additional producers. Consistent with PVR's other business in the Marcellus, all of the Wyoming pipeline producer agreements are entirely fee based and have no direct commodity price risk.
Bill Shea, President and CEO of PVR's general partner, said, "The Wyoming Pipeline was a critical component of PVR's acquisition of Chief Gathering, and the completion of the project ahead of schedule and on budget is an important milestone in the execution of our business plan in the Marcellus Shale region.
"Producers have contracted for initial firm transportation volumes totaling 255 MMcfd this year," continued Mr. Shea. "We expect initial Wyoming Pipeline volumes will exceed the firm committed 'take-or-pay' amounts. The existing volumes on our Susquehanna/ Wyoming gathering systems have been hampered by delivery constraints on the Tennessee Gas Pipeline 300 Line, and our ability to now deliver to Transco via the Wyoming Pipeline will increase volumes on the Susquehanna/ Wyoming gathering systems by over 20%. Volumes are also expected to increase as we continue build out of the Susquehanna/ Wyoming gathering systems and connect additional wells to deliver into the Wyoming Pipeline."
PVR Partners, L.P. (NYSE: PVR) is a publicly traded limited partnership which owns and operates a network of natural gas midstream pipelines and processing plants, and owns and manages coal and natural resource properties. Our midstream assets, located principally in Texas, Oklahoma and Pennsylvania, provide gathering, transportation, compression, processing, dehydration and related services to natural gas producers. Our coal and natural resource properties, located in the Appalachian, Illinois and San Juan basins, are leased to experienced operators in exchange for royalty payments. More information about PVR is available on our website at www.pvrpartners.com.
This press release includes "forward-looking statements" within the meaning of federal securities laws. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Partnership's ability to control or predict, which could cause results to differ materially from those expected by management. Such risks and uncertainties include, but are not limited to, regulatory, economic and market conditions, our ability to successfully realize the anticipated benefits from the acquisition of Chief, the timing and success of business development efforts and other uncertainties. Additional information concerning these and other factors can be found in our press releases and public periodic filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2011 and most recently filed Quarterly Reports on Form 10-Q. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Stephen R. Milbourne
Director - Investor Relations
SOURCE PVR Partners, L.P.
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