Crestwood Midstream Partners LP (NYSE: CMLP) responded March 17 to the news of Quicksilver Resources Inc. filing for protection under chapter 11 of the US Bankruptcy code. Crestwood has been preparing for this event for some time and expects to actively participate in the bankruptcy proceedings.
Crestwood’s gathering and processing systems are integral to Quicksilver’s Barnett shale operations, as an amount of their revenues is derived from the sale of natural gas and natural gas liquids produced from acreage dedicated to Crestwood.
Quicksilver is current on all outstanding invoices received from Crestwood. Crestwood estimates that approximately $2.2 million of pre-petition services were not yet invoiced at the time of filing, and Crestwood expects to receive payment for those services. Additionally, Crestwood plans to continue providing services to Quicksilver in accordance with existing agreements, and expects to receive payment for those services in a timely manner as well.
Crestwood supports Quicksilver’s efforts to restructure its balance sheet and will continue to cooperate in the restructuring process. Weil, Gotshal & Manges LLP has been retained to represent Crestwood in these proceedings.