•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    Crestwood Midstream completes acquisition of midstream assets in Fayetteville Shale, Granite Wash

    Crestwood Midstream Partners LP (NYSE: CMLP) has completed the previously announced acquisition of midstream assets in the Fayetteville Shale and the Granite Wash plays from Tulsa, Oklahoma-based Frontier Gas Services LLC for approximately $338 million cash paid at closing.

    The acquired assets in the Fayetteville Shale, located in Northwest Arkansas, consist of approximately 127 miles of gathering pipelines with a capacity of approximately 510 million cubic feet per day (MMcf/d), treating capacity of approximately 165 MMcf/d and approximately 35,000 hp of compression serving dedicated acreage and natural gas production currently under contracts with BHP Billiton Petroleum, BP America and ExxonMobil’s XTO subsidiary.

    The Granite Wash assets, located in the Texas Panhandle, include a 28 mile natural gas and natural gas liquids pipeline system and a 36 MMcf/d cryogenic processing plant serving dedicated acreage and natural gas production currently under contracts with Chesapeake Energy and Linn Energy. Crestwood LP plans to install a second processing plant with approximately 60 MMcf/d of additional capacity with plans to be in service by the end of 2011 to support expected growth in volumes from the emerging Granite Wash play.

    “This deal, coming on the heels of our October 2010 acquisition of Barnett Shale midstream assets in North Texas, is evidence of our long term strategy to expand Crestwood LP’s geographic and operating footprint and diversify the Partnership’s customer portfolio to include some of the leading producers in the shale or unconventional resource development business,” said Robert G. Phillips, President and chief executive officer (CEO) of Crestwood LP’s general partner.

    The acquisition was financed in part with $153 million in net proceeds received from the Partnership’s previously announced private placement of approximately 6.2 million units of new Class C limited partner interests, at a per unit price of $24.50. In addition, Crestwood LP closed its previously announced private placement of $200 million aggregate principal amount of 7.75% senior notes due 2019. Crestwood LP received aggregate net proceeds from the sale of the senior notes of approximately $193 million, after deducting the initial purchaser’s commissions and estimated expenses.

    “In contemplation of increased capital project opportunities in 2011-12, due largely to the Frontier acquisition, we have received commitments from lenders in Crestwood LP’s existing revolving credit facility to increase the maximum borrowing capacity to $500 million from the current $400 million," Phillips stated. 

    Source:  Crestwood Midstream Partners LP

    Most Popular

    Related Articles

    Rosneft and BP sign production, exploration and refining agreements

    06/19/2015 On June 19, at the St. Petersburg International Economic Forum in Russia, Rosneft and BP signed several agreements strengthening the long-term strategic relationship between the two companies.

    Serica Energy acquires interest in North Sea field

    06/08/2015

    Serica Energy plc has completed a transaction to purchase an 18% interest in the producing North Sea Erskine field from BP.

    Halliburton reaches agreement with BP

    05/21/2015 Halliburton has reached an agreement with BP Exploration & Production Inc. to resolve remaining issues, which includes indemnities between the parties and dismissal of all claims against each o...

    BP plans to divest partial stake in Australian oil venture

    05/19/2015 BP Plc expects to divest a partial stake of the company’s oil project off southern Australia, ahead of exploration scheduled to begin in late 2016 and estimated to cost more than $800 million (A$1 ...

    BP appoints new non-executive directors

    05/14/2015

    BP’s board has appointed Paula Rosput Reynolds and Sir John Sawers as non-executive directors.

    Statoil names board recommendations

    05/06/2015 Statoil’s Nomination Committee has recommended that the company's corporate assembly elect Øystein Løseth as new chair and Roy Franklin as a new member and deputy chair of Statoil's board of direct...

    More Oil & Gas Financial Articles

    Rosneft and BP sign production, exploration and refining agreements

    Fri, Jun 19, 2015

    On June 19, at the St. Petersburg International Economic Forum in Russia, Rosneft and BP signed several agreements strengthening the long-term strategic relationship between the two companies.

    Serica Energy acquires interest in North Sea field

    Mon, Jun 8, 2015

    Serica Energy plc has completed a transaction to purchase an 18% interest in the producing North Sea Erskine field from BP.

    Halliburton reaches agreement with BP

    Thu, May 21, 2015

    Halliburton has reached an agreement with BP Exploration & Production Inc. to resolve remaining issues, which includes indemnities between the parties and dismissal of all claims against each other, relating to the April 20, 2010, Deepwater Horizon well incident in the Gulf of Mexico.

    BP plans to divest partial stake in Australian oil venture

    Tue, May 19, 2015

    BP Plc expects to divest a partial stake of the company’s oil project off southern Australia, ahead of exploration scheduled to begin in late 2016 and estimated to cost more than $800 million (A$1 billion), according to Bloomberg.

    BP appoints new non-executive directors

    Thu, May 14, 2015

    BP’s board has appointed Paula Rosput Reynolds and Sir John Sawers as non-executive directors.

    OGFJ photo of the day


    Click to view slideshow

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ