Regency Energy Partners LP
) announced the pricing of its public offering of $400 million
with a coupon rate of 5.750% senior notes. The notes will mature
in 2020. Regency Energy Finance Corp., a wholly owned direct
subsidiary of Regency, will serve as the co-issuer of the notes.
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The sale of the notes is expected to close on Sep 11, 2013.
Regency intends to use the net proceeds from the offering to
repay outstanding borrowings under its revolving credit facility.
Of late, Regency has been focusing on both organic and inorganic
growth. In Apr 2013, Regency acquired natural gas acreage in the
Permian Basin for $1.5 billion. On the organic route, Regency
incurred $435 million of growth capital expenditures in the first
half of 2013, with $235 million spent for the Gathering and
Processing segment, $135 million for the Contract Services
segment, and $65 million for the NGL Services segment.
Overall in 2013, Regency expects to invest approximately $800
million in growth capital expenditures. Of this $465 million will
be allotted to the Gathering and Processing segment for
expenditures related to growth projects, $175 million will be
allotted to the NGL Services segment and $160 million to the
Contract Services segment.
Regency is a growth-oriented master limited partnership engaged
in the gathering and processing, compression, treating and
transportation of natural gas and the transportation,
fractionation and storage of natural gas liquids. Regency's
general partner is owned by
Energy Transfer Equity, L.P.
Regency Energy holds a Zacks Rank #3 (Hold). However, there are
other stocks in the oil and gas sector like
Whiting USA Trust I
Oiltanking Partners, L.P.
) which hold a Zacks Rank #1 (Strong Buy) and are expected to
perform better in the near term.