HOUSTON, TX--(Marketwire -08/27/12)- Crestwood Midstream Partners LP (CMLP) ("Crestwood") announced today that it has completed the acquisition of gathering and processing assets from subsidiaries of Devon Energy Corporation ("Devon"). The effective date of the acquisition was July 1, 2012. Total cash paid to Devon for the assets was $87.1 million, which reflects a $2.9 million reduction to the originally announced acquisition price for estimated closing adjustments and operating activity since July 1, 2012.
The acquired assets are located in the liquids-rich southwestern area of the Barnett Shale and include a 74 mile low pressure rich natural gas gathering system, a cryogenic processing facility with capacity of 100 million cubic feet per day and 23,100 horsepower of compression equipment. As a part of the transaction, Crestwood and Devon entered into a 20 year fixed-fee gathering, processing and compression agreement covering existing and future production from an approximate 20,500 acre dedication.
"We are pleased to complete this transaction with Devon which expands Crestwood's rich gas operations and strengthens our relationship with another great producer customer," stated Robert G. Phillips, Chairman, President and Chief Executive Officer of Crestwood's general partner. "The acquisition will lead to increased utilization of our existing assets in the Barnett Shale, should add substantially to Crestwood's distributable cash flow and was fully funded from available borrowing capacity under our revolving credit facility," noted Phillips.
About Crestwood Midstream Partners LP
Houston, Texas based Crestwood is a growth-oriented, midstream master limited partnership which owns and operates predominately fee-based gathering, processing, treating and compression assets servicing natural gas producers in the Barnett Shale in north Texas, the Fayetteville Shale in northwest Arkansas, the Granite Wash in the Texas Panhandle, the Marcellus Shale in northern West Virginia, the emerging Avalon Shale trend in southeastern New Mexico, and the Haynesville/Bossier Shale in western Louisiana. For more information about Crestwood, visit www.crestwoodlp.com.
The statements in this news release regarding future events, occurrences, circumstances, activities, performance, outcomes and results are forward-looking statements. Although these statements reflect the current views, assumptions and expectations of Crestwood's management, the matters addressed herein are subject to numerous risks and uncertainties which could cause actual activities, performance, outcomes and results to differ materially from those indicated. Such forward-looking statements include, but are not limited to, statements about the future financial and operating results, objectives, expectations and intentions and other statements that are not historical facts. Factors that could result in such differences or otherwise materially affect Crestwood's financial condition, results of operations and cash flows including, without limitation, changes in general economic conditions; fluctuations in oil, natural gas and NGL prices; the extent and success of drilling efforts, as well as the extent and quality of natural gas volumes produced within proximity of our assets; failure or delays by our customers in achieving expected production in their natural gas projects; competitive conditions in our industry and their impact on our ability to connect natural gas supplies to our gathering and processing assets or systems; actions or inactions taken or non-performance by third parties, including suppliers, contractors, operators, processors, transporters and customers; our ability to consummate acquisitions, successfully integrate the acquired businesses, realize any cost savings and other synergies from any acquisition; changes in the availability and cost of capital; operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control; timely receipt of necessary government approvals and permits, our ability to control the costs of construction, including costs of materials, labor and right-of-way and other factors that may impact our ability to complete projects within budget and on schedule; the effects of existing and future laws and governmental regulations, including environmental and climate change requirements; the effects of existing and future litigation; and risks related to our substantial indebtedness, as well as other factors disclosed in Crestwood's filings with the U.S. Securities and Exchange Commission. You should read our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2011, and our most recent Quarterly Reports and Current Reports for a more extensive list of factors that could affect results.
- Devon Energy Corporation
- natural gas
- Barnett Shale