Crestwood sells Tres Palacios NG storage and pipeline facility

Crestwood Equity Partners LP and Crestwood Midstream Partners LP

Crestwood Equity Partners LP (NYSE: CEQP) and Crestwood Midstream Partners LP (NYSE: CMLP) (together with Crestwood Equity, “Crestwood”) report that Crestwood Equity has entered into definitive agreements to sell 100% of the membership interest in Tres Palacios Gas Storage LLC to a newly formed joint venture between Crestwood Midstream and an affiliate of Brookfield Infrastructure Group for a total cash consideration of $130 million.

Crestwood Midstream will own 50.01% of Tres Palacios Holdings LLC (TPH LLC) and will be the operator of Tres Palacios and its assets. The transaction is expected to close in early December.

Crestwood Midstream expects to initially fund its $65 million portion of the purchase price utilizing its $1 billion revolving credit facility. The company has $125 million of remaining committed preferred equity available to be issued under its June equity agreement, and it intends to utilize a portion of this remaining commitment to pay down revolver borrowings in connection with this transaction.

Crestwood Equity will use the net sale proceeds to repay $130 million of loans outstanding under its revolving credit facility and reduce its loan commitments thereunder by an equal amount, which will result in Crestwood Equity having an aggregate borrowing capacity of $495 million under its credit agreement.

Evercore Partners advised the conflicts committee of the board of directors of Crestwood Equity’s general partner, and Tudor, Pickering, Holt & Co. advised the conflicts committee of the board of directors of Crestwood Midstream’s general partner.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...