Crestwood Equity Partners (CEQP) rose 6% on April 7, 2016. The stock gained on the news of a 10-year gathering and processing agreement with BlueStone Natural Resources II.
Bankrupt energy producer Quicksilver Resources Inc has sold its U.S. assets to private equity firm BlueStone Natural Resources II, after the buyer struck a new contract for transporting Quicksilver's gas. Midstream companies that gather and process natural gas have been watching the case over fears of a precedent-setting court ruling that would allow bankrupt producers to shed unwanted contracts with pipeline operators. Wednesday's agreement removes that threat, and clears the way for Tulsa, Oklahoma-based Bluestone to acquire Quicksilver's assets for $245 million.
Small U.S. oil-and-gas producer Quicksilver Resources Inc began making its case in court on Friday for using its bankruptcy to reject a pipeline contract, a move that trade groups warned could undermine the $500 billion midstream industry. Quicksilver's push to end its agreement with Crestwood Equity Partners has become a closely watched test for midstream operators, which process and transport the producers' oil and gas. The Quicksilver case is part of an emerging legal battle that have pipeline operators fearful that their long-term contracts with energy producers could be canceled or revised as commodity prices have hit multiyear lows.