HOUSTON, TX--(Marketwire - Jan 2, 2013) - Crestwood Midstream Partners LP (
The acquisition includes four Enerven compressor stations which are connected to CMM's low pressure gathering systems in Harrison County, West Virginia and a five-year minimum term Compression Services Agreement with Antero Resources Appalachian Corp. ("Antero"), CMM's largest producer in the Marcellus Shale Region. The Enerven compressor stations have current capacity of approximately 300 million cubic feet per day (MMcf/d), which is being fully utilized by Antero's existing Marcellus Shale production. As a part of the transaction, Enerven will complete station expansions and unit replacements to support additional Antero production requirements and provide day-to-day operations during a 90 day transition period. As an important benefit of the transaction, post-transition, CMM will retain Enerven's Marcellus operations personnel to support its growing gathering and compression business in the area.
Going forward, CMM will provide compression services to Antero under both the Enerven Compression Services Agreements, which expire in 2018, and the 20-year CMM Antero Gathering and Compression Agreement (the "CMM Antero Contract"), which commenced in January 2012. It is expected that when the Enerven Compression Services Agreements expire, services to Antero from the Enerven assets will continue under the CMM Antero Contract. Both agreements provide for comparable fixed service fees with annual escalators and annual volumetric throughput obligations by Antero. CMM plans to construct at least two additional compressor stations in 2013 for Antero under the CMM Antero Contract, expanding total CMM gathering capacity by approximately 100 MMcf/d to 500 MMcf/d. Current spot volumes on the CMM gathering systems were approximately 390 MMcf/d to 400 MMcf/d at year-end 2012. Additionally, CMM and Antero are currently discussing additional compression services required in Antero's Doddridge County acreage, which is currently being developed.
"We are pleased to complete this bolt-on acquisition which adds substantial 2013 EBITDA and expands the value chain and range of services we can offer Antero and other producers in the Marcellus region," stated Robert G. Phillips, Chairman, President and Chief Executive Officer of Crestwood's general partner. "This is another example of the high-growth potential of our Marcellus assets now that CMM has an established, competitive position in this fast-growing rich natural gas play," concluded 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.