Crestwood Cores Up Delaware Basin Position Funded by Barnett Exit

Crestwood Equity Partners LP unveiled on May 25 a series of transactions worth a total of roughly $1.2 billion that more than doubles Crestwood’s natural gas processing capabilities in the Delaware Basin while also exiting its legacy Barnett Shale position.

“I am thrilled to announce this series of strategic transactions that greatly enhance the Crestwood franchise by creating immediate scale and additional runway in the Delaware Basin, high-grading our cash flow mix through the rationalization of noncore assets, and successfully maintaining our conservative balance sheet and financial flexibility,” Robert G. Phillips, Crestwood’s founder, chairman and CEO, commented in a company release.

The series of agreements announced May 26 include the acquisition of Sendero Midstream Partners LP for $600 million in cash, which Crestwood said it “prudently financed” with cash proceeds from the divestiture of its Barnett Shale assets and borrowings on Crestwood’s revolving credit facility.