Energy Transfer Partners Agrees to Merger

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Energy Transfer Partners Agrees to Merger


DALLAS — Energy Transfer Partners LP (ETP) agreed to merge with Regency Energy Partners LP in an $18-billion transaction. The deal is expected to close in the second quarter.

Under the terms of the merger, Regency shareholders will receive 0.4066 ETP common units and a cash payment of 32 cents for each Regency unit they own. This implies an all-in price of $26.89 per unit based on ETP's closing price on Jan. 23.

Once official, the transaction will take the master limited partnership to the "next level" and position it as "one of the strongest and most diversified energy midstream companies in the United States," according to ETP, parent company of both Sunoco Inc. and Susser Holding Corp.  

Dallas-based energy company ETP added that the deal will make it the second-largest master limited partnership in the country and it will be well diversified, with operations throughout the U.S.

Regency is engaged in the gathering and processing, compression, treating and transportation of natural gas; the transportation, fractionation and storage of natural gas liquids; the gathering, transportation and terminaling of oil received from producers; and the management of coal and natural resource properties. Regency’s general partner is owned by Energy Transfer Equity LP.

“I am very proud of the entire team at Regency and am honored to have been able to lead some of the finest people in the industry,” said Mike Bradley, Regency’s CEO. “Together, we have built Regency into one of the largest gathering and processing master limited partnerships in the U.S. over the last several years. In light of the current volatility in commodity prices and the changes in the capital markets, it became apparent over the last several months that Regency needed more scale and diversification, along with an investment grade balance sheet, to continue its growth."