Regency Energy Partners LP ( RGP ): Q4 EPS of -$0.03 Revenue of $677M (+90.5% Y/Y) beats by $78M . Press Release Post your comment!
Regency has a bad habit of paying too much for deals; without exemplary management and hustle the SUGS and PVR deals are unlikely to generate economic returns for unitholders.While Regency has expanded its geographical reach through acquisitions, its assets are not linked together, reducing the
SUGS will help year-over-year growth, but Regency needs more wins to restart distribution growth.
these pipelines could be optimized when combined with ETP's labyrinth of intrastate pipelines in Texas. Furthermore, Regency RGNC , whose general partner is owned by ETE, has a gathering-processing footprint in West Texas that could meld with Southern
Regency Energy Partners LP RGNC received authorization to list its units on the New York Stock Exchange, where they began trading Tuesday under their new ticker
and about $35 million in EBITDA, or $215 million annualized. This suggests that the multiple Energy Transfer and Regency RGNC paid for the acquisition is closer to 9 times EBITDA than the 11 times multiple we had initially assumed. Solid results from
Regency RGNC reported solid second-quarter earnings and raised its distribution for the first time in three years. The partnership generated
realize additional, leveraged upside on Southern Union's assets by dropping them down to Energy Transfer Partners or Regency RGNC and collecting accelerating incentive distributions over time. However, the higher offer knocks $1 off our merger-case fair
model it, we would be unsurprised to see ETE also announce a drop-down of Southern Union Gas Services to either ETP or Regency RGNC (we think Regency would be the better fit, but ETP has right of first refusal). SUGS could easily command at least $1
Union's west Texas gas gathering and processing assets as another likely drop-down, which we think is best suited to Regency RGNC . Based on our estimate for 2012 EBITDA, a drop-down at an 8 times multiple could garner another $1.2 billion for ETE