Crestwood Midstream (CMLP) to Acquire Tristate Sabine in $65M Deal
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Crestwood Midstream Partners LP (NYSE: CMLP) signed a definitive agreement to acquire Tristate Sabine, LLC from affiliates of Energy Spectrum Capital, Zwolle Pipeline, LLC and the Tristate management for $65 million of cash to be paid at closing and a deferred payment of approximately $8 million one year following the closing date, subject to customary post-closing adjustments.
Tristate Acquisition Overview Crestwood will acquire entities that own and operate approximately 52 miles of high-pressure natural gas gathering pipelines located in Sabine Parish, Louisiana (the "Tristate System"). The Tristate System provides gathering and treating services for Haynesville and Bossier Shale production from the Toledo Bend South field area for redelivery to Gulf South Pipeline and Tennessee Gas Pipeline. Contracts on the Tristate System dedicate approximately 20,000 acres under long-term, fixed-fee arrangements. System capacity is currently being expanded to 100 million cubic feet per day ("MMcf/d") for gathering and 80 MMcf/d for treating. The majority of the system has been constructed since 2009.
Closing is expected November 1, 2011.
Tristate Acquisition Overview Crestwood will acquire entities that own and operate approximately 52 miles of high-pressure natural gas gathering pipelines located in Sabine Parish, Louisiana (the "Tristate System"). The Tristate System provides gathering and treating services for Haynesville and Bossier Shale production from the Toledo Bend South field area for redelivery to Gulf South Pipeline and Tennessee Gas Pipeline. Contracts on the Tristate System dedicate approximately 20,000 acres under long-term, fixed-fee arrangements. System capacity is currently being expanded to 100 million cubic feet per day ("MMcf/d") for gathering and 80 MMcf/d for treating. The majority of the system has been constructed since 2009.
Closing is expected November 1, 2011.
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