Energy Transfer to acquire Crestwood gas, oil assets
Energy infrastructure company Energy Transfer said August 16 it had entered into a definitive merger agreement with Crestwood Equity Partners under which Energy Transfer will acquire Crestwood in an all-equity transaction valued at some $7.1bn, including the assumption of $3.3bn of debt.
The Crestwood assets acquired include gathering and processing assets in the Williston, Delaware and Powder River basins, including about 2bn ft3/day of gas gathering capacity, 1.4bn ft3/day of gas processing capacity and 340,000 barrels/day of crude gathering capacity. The transaction is expected to extend Energy Transfer’s position in the value chain deeper into the Williston and Delaware basins while also providing entry into the Powder River basin.
The transaction also includes strategically located storage and terminal assets, including approximately 10mn barrels of storage capacity, as well as trucking and rail terminals.
Crestwood common unitholders will receive 2.07 Energy Transfer common units for each Crestwood common unit. The transaction is expected to close in the fourth quarter of 2023, subject to the approval of Crestwood’s unitholders, regulatory approvals, and other customary closing conditions. Upon closing, Crestwood common unitholders are expected to own approximately 6.5% of Energy Transfer’s outstanding common units.