J.P. Morgan Comments On Joint Venture Between ETP And RGNC

According to J.P. Morgan, Energy Transfer Partners (NYSE: ETP) and Regency Energy Partners (NASDAQ: RGNC) announced a joint venture to buy LDH Energy Assets Holdings LLC's assets for $1.93 Bn.

J.P. Morgan reported that the LDH assets primarily consist of storage and processing plants around Mont Belvieu, a West Texas Pipeline, and storage and fractionation assets in Louisiana (Olefins complex). “ETP will pay ~$1.35 Bn for a 70% interest in the JV; RGNC will pay ~$580 mm for the remaining 30%. The deal is expected to close in 2Q11.”

Energy Transfer Partners closed yesterday at $53.34. Regency Energy Partners closed yesterday at $26.55.