Penn Virginia inks agreement in principle to amend ETC Texas deals

By Caroline Salls

Pittsburgh, Aug. 18 – Penn Virginia Corp. reached an agreement in principle with ETC Texas Pipeline, Ltd. to amend a gas processing agreement, individual transaction confirmation and related agreements, according to an 8-K filed Thursday with the Securities and Exchange Commission.

In connection with the negotiations with ETC, Penn Virginia’s bankruptcy filing and its restructuring support agreement, the company disclosed information to holders of its senior unsecured notes regarding the proposed ETC agreements.

In that presentation, the company said the primary term of its gathering and processing contracts would be extended for an additional five years.

In addition, Penn Virginia said the amended ETC gas gathering and processing contract is expected to save the company $1.8 million to $2 million per year based on volumes from its business plan.

Penn Virginia is an oil and gas company based in Radnor, Pa. The company filed for bankruptcy on May 12 in the U.S. Bankruptcy Court for the Eastern District of Virginia under Chapter 11 case number 16-32395.

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