Inergy Midstream and Enserco Midstream Announce Crude Oil Rail Terminal Joint Venture

  Inergy Midstream and Enserco Midstream Announce Crude Oil Rail Terminal
  Joint Venture

 Provides crude oil takeaway solutions for producers in the emerging Niobrara
                        Powder River Basin shale play

Business Wire

KANSAS CITY, Mo. & HOUSTON -- September 4, 2013

Inergy Midstream, L.P. (NYSE:NRGM) (“Inergy Midstream”) and Enserco Midstream,
LLC (“Enserco Midstream”) announced today that they have formed a joint
venture to own and operate a crude oil rail terminal located in Douglas
County, Wyoming (“Douglas Facility”). Inergy Midstream’s subsidiary, Inergy
Crude Logistics, LLC, and Enserco Midstream’s subsidiary, Enserco Powder River
Basin, LLC, each own an approximate 50% interest in Powder River Basin
Industrial Complex, LLC (“PRBIC”), the owner of the Douglas Facility. The
Douglas Facility was placed into manifest service in August 2013, and unit
train service is expected to begin during the first quarter of 2014.

The Douglas Facility is located in Converse County, Wyoming, atop the emerging
Niobrara Powder River Basin shale play. After commencement of unit train
service, Inergy Midstream and Enserco Midstream expect to expand throughput
capacity to approximately 20,000 barrels per day. The terminal’s throughput
capacity is further expandable to up to 60,000 barrels per day as production
volumes increase in the developing Niobrara Powder River Basin shale play.
PRBIC has an anchor agreement with a major producer for handling of crude oil
volumes at the Douglas Facility.

“We are pleased to partner with Enserco Midstream on this important
development project,” said Robert G. Phillips, Chairman, President, and Chief
Executive Officer of Inergy Midstream’s general partner. “Enserco Midstream
provides deep energy industry knowledge, and together we look forward to
providing first-class takeaway solutions for our producer customers in the
Powder River Basin play.”

“This transaction further expands Inergy Midstream’s crude logistics
operations into another high-quality, emerging shale play and is an example of
the strategic value of the planned merger between Inergy Midstream and
Crestwood Midstream Partners LP (NYSE:CMLP) (“Crestwood”). The crude logistics
operations of PRBIC are complementary to Crestwood’s recently completed
acquisition of a 50% interest in the Jackalope natural gas gathering system
and enhance our position in the Powder River Basin play by providing
additional services and handling multiple products across the midstream value
chain and creates additional opportunities for growth.”

“Enserco Midstream is pleased to join forces with Inergy Midstream to own and
operate the Douglas Facility,” said Griff Jones, President and CEO of Twin
Eagle Resource Management, LLC, the parent company of Enserco Midstream. “The
strength and reputation of our new partner will help provide us with
additional momentum as we expand our geographic reach into the growing shale
plays throughout the country.”

About Inergy Midstream, L.P.

Inergy Midstream, L.P. is a publicly traded master limited partnership that
develops, owns, and operates predominantly fee-based natural gas, NGL and
crude oil storage and transportation businesses. For more information about
Inergy Midstream, L.P., visit www.inergylp.com.

About Inergy, L.P.

Inergy, L.P. is a publicly traded master limited partnership that controls,
owns, and operates energy midstream businesses. Inergy's operations include a
natural gas storage business in Texas and an NGL and crude oil supply and
logistics business that serves customers in the United States and Canada.
Through its general partner interest in Inergy Midstream, L.P. and Crestwood
Midstream Partners LP, Inergy is also engaged in the development and operation
of natural gas, NGL and crude oil gathering, processing, storage, and
transportation assets in multiple unconventional shale plays across the United
States. For more information about Inergy, L.P., visit www.inergylp.com.

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. (NYSE:NRGY).

About Enserco Midstream, LLC

Enserco Midstream, LLC is a privately held subsidiary of Twin Eagle Resource
Management, LLC. Enserco Midstream owns and operates crude oil logistical
assets in North Dakota, Montana and Wyoming and has plans to develop
additional assets in these areas as well as other areas around North America.

About Twin Eagle Resource Management, LLC

Twin Eagle Resource Management, LLC is a leading energy commodity marketing
company focused on customer relations, logistics and asset management. Twin
Eagle has four primary divisions – natural gas, power, crude and coal – which
work together to provide customers and counterparties solutions to their
wholesale energy needs. Through a subsidiary, Enserco Midstream, LLC, Twin
Eagle owns and operates crude oil logistical assets around North America and
through its retail division, ENCOA, Twin Eagle provides retail electricity,
natural gas, and energy solutions to end-use customers within deregulated
markets.

This press release contains forward-looking statements, which are statements
that are not historical in nature including statements concerning the
expectation that the Douglas Facility will commence unit train service in 2014
and the availability of expansion possibilities. 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 crude oil demand; the general level of crude
oil supplies, including supply volumes in the production region designed to be
served by the Douglas Facility; 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’s
annual reports 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.

Contact:

Inergy
Vince Grisell, 816-842-8181
investorrelations@inergyservices.com
or
Crestwood
Mark Stockard, 832-519-2207
mstockard@crestwoodlp.com
or
Twin Eagle Resource Management, LLC
Tom Godbold, 713-341-7378
tom.godbold@termna.com
 
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