U.S. Energy Transfer to Buy Crestwood for $7.1 Billion
US pipeline giant Energy Transfer has agreed to buy Crestwood Equity Partners for approximately $7.1 billion, including $3.3 billion in debt. This was announced on August 16 by the press service of Energy Transfer.
The transaction will be fully paid in equity instruments. Ordinary share holders of Crestwood, which specializes in oil and gas treatment and transportation, will receive 2.07 Energy Transfer ordinary shares for each share they own.
The transaction is expected to close in Q4 2023. As a result, Crestwood unit holders will own approximately 6.5% of Energy Transfer’s outstanding units. The deal is expected to immediately increase Energy Transfer’s cash flow per share and generate annual cost synergies of at least $40 million.
The deal opens Energy Transfer’s access to the river basin. Powder and is expanding its presence in the Williston and Delaware basins.
As Energy Transfer noted:
- these assets are expected to complement Energy Transfer’s fractionation capacity at Mont Belvier, as well as hydrocarbon export capabilities from the Nederland terminal in Texas and the Marcus Hook terminal in Philadelphia, pc. Pennsylvania.
Crestwood’s Midstream systems, which are located in 3 pools, include:
- gas collection capacity of 2 billion m3/day,
- gas processing capacity – 1.4 billion cf3,
- oil gathering capacity – 340 thousand barrels per day.
Recall that on August 25, 2022, it became known that Energy Transfer from 2026 will supply Anglo-Dutch Shell with 2.1 million tons of LNG per year for 20 years.
The first deliveries under the contract are expected in 2026. LNG will be supplied from the Energy Transfer Lake Charles LNG project in the Gulf of Mexico. Previously, the project was approved by the US Federal Energy Regulatory Commission and received an export permit from the country’s Department of Energy.
Energy Transfer:
- is engaged in the management of gas and oil pipelines, trade in petroleum products;
- headquarters is located in Dallas, pc. Texas;
- the company was founded in 1995;
- in 2012, Energy Transfer acquired Sunoco (the company is engaged in wholesale and retail trade in petroleum products);
- main divisions:
– interstate gas pipelines – gas pipelines connecting natural gas fields with gas storage facilities and terminals,
– intrastate gas pipelines – gas distribution networks of states,
– processing – collection of natural gas, its purification, liquefaction and storage,
– liquefied natural gas (LNG) – transportation and trade,
– oil – transportation and trade.
