HOUSTON — Crestwood Equity Partners LP entered into a series of agreements under which the company acquired Sendero Midstream Partners LP for $600 million in cash; acquired First Reserve’s 50-percent equity interest in Crestwood Permian Basin Holdings (CPBH) LLC for $320 million in Crestwood common units, plus the assumption of asset level debt; and divested its legacy, non-core Barnett Shale assets to EnLink Midstream LLC for $275 million in cash.
“I am thrilled to announce this series of strategic transactions that greatly enhance the Crestwood franchise by creating immediate scale and additional runway in the Delaware Basin, high-grading our cash flow mix through the rationalization of non-core assets, and successfully maintaining our conservative
balance sheet and financial flexibility,” commented Robert G. Phillips, founder, chairman and CEO of Crestwood. “The acquisition of Sendero Midstream is highly complementary to our existing Willow Lake assets, provides excess processing and compression capacity for current and future customer development activity, and solidifies Crestwood’s footprint in the leading North American shale play. The consolidation of First Reserve’s equity interest in CPBH simplifies our corporate structure and drives enhanced financial, commercial and operational flexibility. Both transactions are highly synergistic and will drive meaningful accretion to our distributable cash flow for many years to come. We will continue to focus on building and optimizing our sizeable gathering and processing positions in the Williston Basin, Delaware Basin and Powder River Basin.”
For more information, visit www.crestwoodlp.com or call (832) 519-2200.