•  
  •  
  •  
  •  
  •  
  • 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

    Related Articles

    BP names new CEO of US shale unit

    08/21/2014

    BP has named David Lawler as CEO of its US Lower 48 Onshore business.

    Former Bank of England Chief Economist to Join BP

    08/05/2014

    The Bank of England reported Aug. 4 that its former chief economist Spencer Dale, who had just assumed a new role at the bank, is leaving the BoE to become chief economist at oil major BP.

    BP, AeroVironment launch first FAA-approved, UAS over land and water

    06/10/2014 In a deal that marks the first time unmanned aircraft systems will perform routine commercial services over land in compliance with FAA regulations, AeroVironment has been contracted by BP to provi...

    TPAO to buy Total's stake in Azeri gas project for $1.5 B

    06/02/2014 Turkey's state oil company TPAO has signed a $1.5 billion deal to acquire Total's 10% stake in Azerbaijan's Shah Deniz gas project, Reuters said. The agreement increases TPAO's stake in the project...

    Aker wins offshore Norway contract from BP

    05/30/2014

    Aker Solutions has secured a framework agreement to provide engineering, modifications, and maintenance services for BP-operated oil and gas fields offshore Norway.

    More Oil & Gas Financial Articles

    BP names new CEO of US shale unit

    Thu, Aug 21, 2014

    BP has named David Lawler as CEO of its US Lower 48 Onshore business.

    Former Bank of England Chief Economist to Join BP

    Tue, Aug 5, 2014

    The Bank of England reported Aug. 4 that its former chief economist Spencer Dale, who had just assumed a new role at the bank, is leaving the BoE to become chief economist at oil major BP.

    BP, AeroVironment launch first FAA-approved, UAS over land and water

    Tue, Jun 10, 2014

    In a deal that marks the first time unmanned aircraft systems will perform routine commercial services over land in compliance with FAA regulations, AeroVironment has been contracted by BP to provide mapping, GIS and other commercial information services the Prudhoe Bay oil field for a five-year period.

    TPAO to buy Total's stake in Azeri gas project for $1.5 B

    Mon, Jun 2, 2014

    Turkey's state oil company TPAO has signed a $1.5 billion deal to acquire Total's 10% stake in Azerbaijan's Shah Deniz gas project, Reuters said. The agreement increases TPAO's stake in the project to 19% from a previous 9%, while Total exits the project.

    Aker wins offshore Norway contract from BP

    Fri, May 30, 2014

    Aker Solutions has secured a framework agreement to provide engineering, modifications, and maintenance services for BP-operated oil and gas fields offshore Norway.

    Most Popular

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ