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A $1 Billion Pipeline Purchase

Scott Detrow / StateImpact Pennsylvania

A natural gas pipeline being dug in Greene County


Got $1 billion laying around? You could buy Instagram with the cash. Or, as drilling company Penn Virginia has done, you could purchase the Chief Gathering pipeline company.
More from the AP:

Penn Virginia said on Tuesday it is buying the Chief Gathering pipeline business from its parent Chief E&D Holdings LP. It expects to finance the transaction with committed equity and debt.
The $1 billion purchase price will be paid in cash and $200 million in special units.
William H. Shea Jr., CEO of Penn Virginia’s general partner, said in a statement that by the end of 2013 the Radnor, Pa., company’s midstream division will make up nearly 75 percent of the company’s adjusted earnings. The unit currently accounts for 40 percent to 45 percent of Penn Virginia’s adjusted earnings.

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