The firm has agreed to acquire Sendero Midstream Partners in a deal worth $600m in cash.
Located in Eddy County, New Mexico, the Sendero Midstream’s assets include a processing capacity of 350 million cubic feet per day (MMcf/d), and approximately 140 miles of natural gas gathering lines.
Crestwood also signed an agreement to acquire a 50% stake in Crestwood Permian Basin Holdings (CPJV) from First Reserve.
As part of the deal, Crestwood will pay $320m in its common units and assume asset level debt.
Crestwood founder, chairman, and CEO Robert Phillips said: “The acquisition of Sendero Midstream is highly complementary to our existing Willow Lake assets, provides excess processing and compression capacity for current and future customer development activity, and solidifies Crestwood’s footprint in the leading North American shale play.
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“Furthermore, the consolidation of First Reserve’s equity interest in CPJV simplifies our corporate structure and drives enhanced financial, commercial, and operational flexibility. Both transactions are highly synergistic and will drive meaningful accretion to our distributable cash flow for many years to come.”
Crestwood has also signed a $275m agreement to sell its non-core gathering and processing assets in the Barnett Shale producing basin in Texas, US, to EnLink Midstream.
The assets covered under the deal include 500 miles of lean and rich gas gathering pipelines, as well as three processing plants with a capacity of 425MMcf/d.
The transactions are subject to customary regulatory approvals and Crestwood expects the deals to be completed early in the third quarter of 2022.
The sale complies with Crestwood’s asset optimisation strategy. The firm plans to re-distribute cash proceeds from non-core asset sales into higher growth and stacked pay assets in the Delaware Basin.