Regency Energy Partners LP Acquisition of PVR Partners, L.P. October 10, 2013
Transaction Overview Unit-for-unit transaction1 Structure 1.020 Regency Common Units for each unit of PVR (includes Common Units, Class B Units and Special Units) Purchase Price Total consideration of 5.6 billion2 (including 1.8…
Strategic Highlights Combination of Regency and PVR creates the premiere, diversified gas gathering and processing MLP with scaled presence in the most economic, high-growth, unconventional oil and gas plays in North America…
Increased Scale and Basin Diversification Pro forma for the transaction, Regency will be one of the largest independent gas gathering MLPs, positioning the Company to service the largest producers in its various operating areas…
Significant Improvements to Regency & PVR Business Profile 2013E Gross Margin Regency1 PVR Pro Forma NGL Services NGL Services 12% Coal 2 8% Coal 7% 24% Nat. Gas Trans. Nat. Gas G&P 14% Trans. Eastern2,3 48% 20% 46% 3,4…
Diversified, Well-Positioned Asset Base Key Highlights Pro Forma Asset Base Scaled midstream Marcellus presence in most of key, Utica high-growth Granite Wash unconventional gas plays in Mississippi Lime the lower 48 Wet-gas…
North American Production Growth Focused in Northeast & Texas North American gas production growth is expected to be centered in the Northeast and Texas, consistent with the footprint of the combined Regency / PVR Source: Bentek…
PVR Acquisition of Largely Fee-Based EBITDA Growing level of fee-based cash flows helps mitigate overall midstream commodity exposure Contract arrangements provide further cash flow stability and reduce risk profile Majority of PVR…
Major Expansions Under Construction Regency Estimated Completion Date Dubberly Expansion December 2013 Lone Star Fractionator 2 Q4 2013 WTX Expansion 2 Q1 2015 Mariner South Pipeline Q1 2015 Regency Total Growth Capital 470…
Pro Forma Credit Metrics Transaction consideration is in keeping with Regencys long-term investment grade rating objective 6.0x 2013E Leverage 4.8x 5.0x 4.5x 4.2x 4.0x 3.0x Regency 1 PVR 1 Pro Forma Corporate…
Enhanced Long-Term Value Creation Compelling value creation opportunity for Regency and PVR unitholders Enhances the combined companys position in attractive, high-growth regions Capitalizes on long-term growth momentum of North…
Q&A
Appendix
Overview of PVR Eastern (Marcellus) Gathering Pipeline / Trunkline Miles: 252 Well Connects: 261 (through July 31, 2013) 2013 Q2 Volume (MMcfd): 1,310 Mid-Continent Gathering Pipeline Miles: 4,541 Plants and Processing Capacity:…
PVR Eastern Midstream Overview Marcellus Systems Overview Asset Map In the Marcellus, PVR provides gathering, compression & related NY services 100% fee-based: PA Firm reservation charges provide a floor on returns Additional…
PVR Mid-Continent Midstream Overview Key Highlights Midcontinent Assets Traditional midstream gathering and processing business Assets are located in attractive natural gas basins with long-lived reserves 460 MMcfd processing…
PVR Coal and Natural Resource Management Overview Key Highlights Coal Assets Coal royalty business - not coal Central Appalachia (75% of Reserves) Illinois Basin (22% of Reserves) mining (no operating cost or capex risks); no…
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