Crestwood to acquire Fayetteville Shale, Granite Wash midstream assets for $338MM

Source: Crestwood Midstream

Crestwood Midstream Partners LP (NYSE:CMLP) signed a definitive agreement to acquire midstream assets in the Fayetteville Shale and the Granite Wash plays from Frontier Gas Services, LLC, which is headquartered in Tulsa, Oklahoma, for approximately $338 million, with an additional $15 million to be paid to Frontier if certain operational objectives are met within six-months of the closing date. 

The Frontier Fayetteville assets consist of approximately 127 miles of high pressure and low pressure gathering pipelines with capacity of approximately 510 million cubic feet per day ("MMcf/d"), treating capacity of approximately 165 MMcf/d and approximately 35,000 hp of compression. The Fayetteville systems interconnect with multiple interstate pipelines which serve the Fayetteville Shale and are supported by long-term, fixed-fee contracts with blue chip producers who have dedicated approximately 100,000 acres in the core of the Fayetteville Shale to Frontier. 

The Frontier Granite Wash assets currently consist of a 28 mile pipeline system and a 36 MMcf/d cryogenic processing plant in the Texas Panhandle. The Granite Wash area has emerged as a highly economic liquids-rich natural gas play with active drilling programs by area producers. The Granite Wash assets are supported by long-term contracts with producers which have substantial Texas Panhandle area drilling programs underway. Crestwood LP plans to install a second processing plant with 60 MMcf/d of capacity that is expected to be in service by the end of 2011 to provide additional capacity to support growth in volumes from this region.

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...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs