Inergy Midstream Completes the Acquisition of the COLT Crude Oil Logistics
Hub and Related Long-term Financing
Establishes New Midstream Platform in the Prolific Bakken Shale
KANSAS CITY, Mo. -- December 07, 2012
Inergy Midstream, L.P. (NYSE:NRGM) (“Inergy Midstream”) and the owner of its
general partner, Inergy, L.P. (NYSE:NRGY) (“Inergy”), announced today that
Inergy Midstream has completed the previously announced acquisition of
Rangeland Energy, LLC (“Rangeland”), the owner and operator of the COLT crude
oil rail terminal, storage, and pipeline facilities (the “COLT Hub”) for
approximately $425 million, subject to certain performance milestones and
customary working capital adjustments. The COLT Hub acquisition is an
expansion of Inergy Midstream’s shale-focused infrastructure portfolio and a
natural extension of Inergy’s refinery and producer-services businesses.
Additionally, the COLT Hub has a first-mover advantage in the Bakken and could
lead to incremental crude oil and NGL investments.
Inergy Midstream also announced today that it has completed the long-term debt
and equity financing associated with the COLT Hub acquisition with the private
placement of $225 million of Inergy Midstream common units and $500 million in
senior unsecured notes due 2020. The remaining net proceeds from these
offerings were used to repay borrowings under the Inergy Midstream revolving
About Inergy Midstream, L.P.
Inergy Midstream, L.P., headquartered in Kansas City, Missouri, is a master
limited partnership primarily engaged in the development and operation of
natural gas and NGL storage and transportation assets. Inergy Midstream’s
assets are located in the Northeast region of the United States.
About Inergy, L.P.
Inergy, L.P., headquartered in Kansas City, Missouri, is a publicly traded
master limited partnership. Inergy’s operations include a natural gas storage
business in Texas and an NGL supply logistics and marketing business that
serves customers in the United States and Canada. Through its general partner
interest and majority equity ownership interest in Inergy Midstream, L.P.,
Inergy is also engaged in the development and operation of natural gas and NGL
storage and transportation business in the Northeast region of the United
This press release contains forward-looking statements, which are statements
that are not historical in nature including the expectation that the COLT Hub
could lead to incremental investments. Forward-looking statements are subject
to certain risks, uncertainties, and assumptions. Should one or more of these
risks or uncertainties materialize or any underlying assumption proves
incorrect, actual results may vary materially from those anticipated,
estimated, or projected. Among the key factors that could cause actual results
to differ materially from those referred to in the forward-looking statements
are: weather conditions that vary significantly from historically normal
conditions; the general level of petroleum product demand and the availability
of supply; the demand for high deliverability natural gas storage capacity in
the Northeast; our ability to successfully implement our business plan; the
outcome of rate decisions levied by the Federal Energy Regulatory Commission;
our ability to generate available cash for distribution to unitholders; and
the costs and effects of legal, regulatory, and administrative proceedings
against us or which may be brought against us. These and other risks and
assumptions are described in Inergy Midstream’s annual report on Form 10-K and
other reports that are available from the United States Securities and
Exchange Commission. Readers are cautioned not to place undue reliance on
forward-looking statements, which reflect management’s view only as of the
date made. We undertake no obligation to update any forward-looking statement,
except as otherwise required by law.
Corporate news, unit prices, and additional information aboutInergy and
Inergy Midstream, including reports from theUnited States Securities and
Exchange Commission, are available on the company’s website,www.inergylp.com.
For more information, contact Vince Grisellin Inergy’s Investor Relations
Department at 816-842-8181 or via e-mail at
Inergy Midstream, L.P.
Vince Grisell, 816-842-8181
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