Penn Virginia's sale of nearly all of its Eagle Ford Shale natural gas midstream assets to an affiliate of ArcLight Capital Partners for $100 million does not pose any competition concerns, the US government said Wednesday.
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In an early termination notice under the Hart-Scott-Rodino Antitrust Improvements Act, the Federal Trade Commission said neither it nor the Department of Justice's Antitrust Division intend to take enforcement action against the deal.
The assets involved in the deal include a natural gas gathering and gas lift system including about 119 miles of pipelines and associated facilities located in Gonzales and Lavaca counties, Texas, Penn Virginia said when announcing the sale December 16.
The deal is expected to close during the first quarter of 2014 and Penn Virginia intends to use the proceeds to help fund its 2014 capital expenditure plan, it said.
The Eagle Ford deal is one of a number of asset sales Penn Virginia is considering, it said, adding that the cash from the deals would fund its investment in oil exploration and production in the play.