Investopedia: Like Utilities, Penn Virginia Is Switching To Gas

The Penn Virginia Resource Partners (NYSE:PVR) that you knew and loved is soon to be a very different company. With a large acquisition of a private midstream gas company, Penn Virginia is largely becoming a gas gathering and processing company that also happens to have coal assets. While this is a deal with solid rationale behind it, current investors may well be troubled by the dilution involved and the fact that company will move from its plans to be a balanced coal and midstream gas company to a gas-heavy partnership.

The Deal of the Day
Penn Virginia announced Tuesday morning that it is going to acquire privately-held Chief Gathering LLC for $1 billion. While the company says that $200 million of the price will be paid in equity and the remainder in cash, that's not really true. $580 million of the "cash" is coming from the sale of common units and new Class B units that ultimately convert into common units.

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