Energy Transfer completes acquisition of Crestwood

Energy Transfer LP completed its previously announced merger with Crestwood Equity Partners LP. The merger was approved by Crestwood unitholders at its special meeting on Oct. 30. Crestwood’s common units and preferred units ceased trading Nov. 3 on the New York Stock Exchange.

”On behalf of Crestwood, I would like to thank our unitholders for their strong support in approving the transaction with Energy Transfer,” Robert G. Phillips, founder, chairman and CEO of Crestwood, said on Oct. 30. “We believe the combination with Energy Transfer is highly strategic for Crestwood and provides Crestwood unitholders a compelling value-enhancing opportunity as part of a significantly larger, more diverse MLP with a strong balance sheet, backlog of growth opportunities and a target distribution per-unit growth rate of 3 to 5 percent per year.

“Finally, Crestwood management and the board of directors would like to sincerely thank the employees of Crestwood for their hard work and dedication over the past 12 years to build a first-class organization and an asset portfolio of high-value, critical infrastructure,” Phillips added. “We look forward to the combined success of Crestwood and Energy Transfer for many years to come.”

The companies announced in August that they had agreed on a deal in which Energy Transfer would acquire Crestwood in an all-equity transaction valued at about $7.1 billion, including the assumption of $3.3 billion of debt, based on the closing price on Aug. 15.

As a result of the acquisition, Energy Transfer now owns and operates more than 125,000 miles of pipelines and related assets in all of the major U.S. producing regions and markets across 41 states.

Energy Transfer is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (NGL) and refined product transportation and terminaling assets; and NGL fractionation.

Energy Transfer also owns Lake Charles LNG Co., as well as the general partner interests, the incentive distribution rights and about 34 percent of the outstanding common units of Sunoco LP and the general partner interests and about 47 percent of the outstanding common units of USA Compression Partners LP.

Crestwood has been part of the LP Gas Suppliers Guide.

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