Penn Virginia Resource Partners LP on Thursday said it acquired Kinder Morgan Energy Partners LP's 25 percent member interest in Thunder Creek Gas Services LLC for $50 million in cash.
Thunder Creek is an independently operated joint venture and one of the major coalbed methane gatherers in Wyoming's Powder River Basin, Penn Virginia said.
Its main assets include a 355-mile high-pressure gathering system with a capacity of 450 million cubic feet per day, five low-pressure gathering systems with 194 miles of pipeline, a 210 million-cubic-feet-per-day CO2 treating facility and about 65,000 horsepower of compression.
All of Thunder Creek's revenue comes from gathering, transportation, treating and compression fees, with no commodity price exposure, Penn Virginia said.
The acquisition was funded by borrowings under Penn Virginia's revolving credit facility.
Penn Virginia Resource Partners is a master limited partnership formed by Penn Virginia Corp. In addition to managing coal properties, the partnership operates a midstream natural-gas gathering and processing business.
Penn Virginia shares fell 23 cents to $26.88 in afternoon trading, while Kinder Morgan shares fell 13 cents to $59.31.
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