Penn Virginia Resource Partners LP said Friday its subsidiary PVR Midstream LLC has acquired pipeline and compression facilities in Texas and Oklahoma from Transwestern Pipeline Co. LLC for $15 million in cash. The acquisition consists of 115 miles of 12- and 16-inch pipelines and 4,400 horsepower of compression and related facilities located in Hemphill and Lipscomb counties in Texas and Beaver, Ellis, and Roger Mills counties in Oklahoma.

The abandonment of the facilities to nonregulated status and their transfer to PVR already has been approved by the Federal Energy Regulatory Commission.

Penn Virginia Resource Partners, a master limited partnership of Penn Virginia Corp., called the acquisition “a significant expansion” that will complement PVR’s existing Beaver/Perryton System. Beaver/Perryton consists of 1,160 miles of gathering pipeline and the 100 MMcf/d Beaver Gas Processing Plant. The acquisition is expected to substantially expand the gathering and processing footprint of PVR’s existing Beaver/Perryton System, including the immediate addition of 20 MMcf/d.

To accommodate the processing of the new gas and to provide future capacity, PVR plans to expand the processing capacity of Beaver/Perryton to 150 MMcf/d from 100 MMcf/d for about $6 million.

Penn Virginia Resource Partners CEO A. James Dearlove said the acquisition “enhances PVR Midstream’s organic growth opportunities. With the combination of increased processing margins from natural gas currently on our Beaver/Perryton system and new third party gathering and processing volumes, we expect the acquisition to be immediately accretive to PVR’s distributable cash flow.”

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