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Crestwood Midstream Partners Completes Acquisition in Niobrara Shale Gas Gathering and Processing Joint Venture

   Crestwood Midstream Partners Completes Acquisition in Niobrara Shale Gas
                    Gathering and Processing Joint Venture

PR Newswire

HOUSTON, July 22, 2013

HOUSTON, July 22, 2013 /PRNewswire/ -- Crestwood Midstream Partners LP (NYSE:
CMLP) ("Crestwood") and the owner of its general partner, Inergy, L.P. (NYSE:
NRGY) ("Inergy"), today announced that Crestwood's subsidiary, Crestwood
Niobrara LLC ("Crestwood Niobrara"), has completed the acquisition of a 50%
interest in Jackalope Gas Gathering Services, L.L.C. ("Jackalope") from RKI
Exploration & Production, LLC ("RKI") for a total cash consideration of $107.5
million. 

The other 50% interest in Jackalope is owned by Access Midstream Partners,
L.P. ("Access"). Access will continue to provide field operations and
construction management for Jackalope, and Crestwood will assume the
commercial development role for the joint venture.

GE Energy Financial Services provided $80.6 million of preferred equity to
Crestwood Niobrara, with the remaining $26.9 million of the acquisition funded
under Crestwood's revolving credit facility. GE Energy Financial Services has
agreed to provide 75% of the future capital contributions for Crestwood
Niobrara's 50% interest in Jackalope, up to an aggregate contribution of $150
million.

The Jackalope gathering and processing system ("Jackalope System") is located
in Converse County, Wyoming, in the emerging Powder River Basin Niobrara Shale
play and is currently composed of approximately 100 miles of gathering
pipelines and 9,400 horsepower of compression equipment. The Jackalope System
is being developed to gather and process rich natural gas produced from a
311,000-acre area of dedication from Chesapeake Energy Corporation
("Chesapeake") and RKI. Chesapeake and RKI have collectively accumulated the
largest acreage block in the Powder River Basin Niobrara Shale play, spanning
over 750,000 acres. The existing assets and future development are supported
by a 20-year gathering and processing agreement with Chesapeake and RKI under
which Jackalope receives cost-of-service based fees with annual
redeterminations that provide for an attractive rate of return on invested
capital.

"We are pleased to complete this transaction expanding Crestwood's operations
into another very active and emerging shale play," said Robert G. Phillips,
Chairman, President and Chief Executive Officer of Crestwood's general
partner. "This transaction is another step in the execution of our strategy to
position Crestwood in rich gas plays supported by long-term contracts and
large acreage dedications. The Jackalope System provides significant
visibility to cash flow growth as midstream infrastructure is expanded to
support very capable producers in the Niobrara play. In addition, we are very
excited about the future opportunities the transaction provides for Crestwood
to extend its value chain services as infrastructure in the play develops,"
Phillips added.

Dan Castagnola, a managing director at GE Energy Financial Services in
Houston, said: "We are partnering with strong companies to develop
infrastructure underpinned by long-term, fee-based contracts providing
attractive returns and helping to grow US shale plays."

Locke Lord LLP and Sidley Austin LLP acted as legal counsel to Crestwood
Niobrara and GE Energy Financial Services, respectively, in connection with
the acquisition and financing transactions.

About Crestwood Midstream Partners LP

Houston, Texas-based Crestwood is a growth-oriented, midstream master limited
partnership which owns and operates predominately fee-based gathering,
processing, treating and compression assets servicing natural gas producers in
the Barnett Shale in north Texas, the Marcellus Shale in northern West
Virginia, the Fayetteville Shale in northwest Arkansas, the Granite Wash in
the Texas Panhandle, the Avalon Shale/Bone Spring in southeastern New Mexico
and the Haynesville/Bossier Shale in western Louisiana. For more information
about Crestwood, visit www.crestwoodlp.com. The general partner of Crestwood
is owned by Inergy, L.P.

About Inergy, L.P.

Inergy, L.P., (NYSE: NRGY), is a publicly traded master limited partnership.
Inergy's operations include a natural gas storage business in Texas and an NGL
supply logistics, transportation, and marketing business that serves customers
in the United States and Canada. Through its general partner interest in
Inergy Midstream, L.P. (NYSE: NRGM), Inergy is also engaged in the development
and operation of natural gas, NGL and crude oil storage, transportation, and
logistics businesses in the Northeast region of the United States and in North
Dakota. For more information about Inergy, visit www.inergylp.com.

About GE Energy Financial Services

GE Energy Financial Services—GE's energy investing business—works as a
builder, not just a banker, to help meet the world's power and fuel needs.We
offer more than money—expertise—for essential, long-lived and
capital-intensive power, oil and gas infrastructure—GE's core
business.Drawing on GE's energy technical know-how, financial strength and
risk management, we see value where others don't and take on our customers'
toughest challenges with flexible equity and debt transaction
structures.Based in Stamford, Connecticut, GE Energy Financial Services holds
an approximately $20 billion global energy portfolio. More information:
www.geenergyfinancialservices.com. Follow GE Energy Financial Services on
Twitter: @GEEnergyFinServ.

About GE

GE (NYSE: GE) works on things that matter. The best people and the best
technologies taking on the toughest challenges. Finding solutions in energy,
health and home, transportation and finance. Building, powering, moving and
curing the world. Not just imagining. Doing. GE works. For more information,
visit the company's website at www.ge.com.

Forward-Looking Statements

The statements in this news release regarding future events, occurrences,
circumstances, activities, performance, outcomes and results are
forward-looking statements. Although these statements reflect the current
views, assumptions and expectations of Crestwood's management, the matters
addressed herein are subject to numerous risks and uncertainties which could
cause actual activities, performance, outcomes and results to differ
materially from those indicated. Such forward-looking statements include, but
are not limited to, statements about the future financial and operating
results, objectives, expectations and intentions and other statements that are
not historical facts. Factors that could result in such differences or
otherwise materially affect Crestwood's financial condition, results of
operations and cash flows including, without limitation, changes in general
economic conditions; fluctuations in oil, natural gas and NGL prices; the
extent and success of drilling efforts, as well as the extent and quality of
natural gas volumes produced within proximity of our assets; failure or delays
by our customers in achieving expected production in their natural gas
projects; competitive conditions in our industry and their impact on our
ability to connect natural gas supplies to our gathering and processing assets
or systems; actions or inactions taken or non-performance by third parties,
including suppliers, contractors, operators, processors, transporters and
customers; our ability to consummate acquisitions, successfully integrate the
acquired businesses, realize any cost savings and other synergies from any
acquisition; changes in the availability and cost of capital; operating
hazards, natural disasters, weather-related delays, casualty losses and other
matters beyond our control; timely receipt of necessary government approvals
and permits, our ability to control the costs of construction, including costs
of materials, labor and right-of-way and other factors that may impact our
ability to complete projects within budget and on schedule; the effects of
existing and future laws and governmental regulations, including environmental
and climate change requirements; the effects of existing and future
litigation; and risks related to our substantial indebtedness, as well as
other factors disclosed in Crestwood's filings with the U.S. Securities and
Exchange Commission. You should read our filings with the U.S. Securities and
Exchange Commission, including our Annual Report on Form 10-K for the year
ended December 31, 2012, and our most recent Quarterly Reports and Current
Reports for a more extensive list of factors that could affect results.

Investor Contact:

Mark Stockard
832-519-2207
mstockard@crestwoodlp.com

SOURCE Crestwood Midstream Partners LP; Inergy, L.P.

Website: http://www.crestwoodlp.com
 
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