Dallas-based Energy Transfer LP has agreed to acquire Houston-based Crestwood Equity Partners in an all-equity transaction valued at roughly $7.1 billion.
Included in the deal is the assumption of $3.3 billion of debt, based on the closing price on Aug. 15, Energy Transfer said. The deal is expected to close in the fourth quarter.
Upon closing, Energy Transfer said that Crestwood common unitholders are expected to own roughly 6.5% of Energy Transfer’s outstanding common units.
Crestwood is a publicly traded master limited partnership that owns and operates midstream assets primarily in the Williston Basin, Delaware Basin, and Powder River Basin, including roughly 2 billion cubic feet per day of gas gathering capacity, 1.4 billion cubic feet per day of gas processing capacity, and 340,000 barrels per day of crude gathering capacity.
Energy Transfer said that if consummated, the deal would extend its position in the value chain deeper into the Williston and Delaware basins while also providing entry into the Powder River basin.
It said those assets should complement its downstream fractionation capacity at Mont Belvieu, as well as its hydrocarbon export capabilities from both its Nederland Terminal in Texas and the Marcus Hook Terminal in Philadelphia, Pennsylvania.
The deal also should provide benefits to Energy Transfer’s NGL & Refined Products and Crude Oil businesses with the addition of strategically located storage and terminal assets, including roughly 10 million barrels of storage capacity, as well as trucking and rail terminals.
BofA Securities was sole financial adviser to Energy Transfer and Kirkland & Ellis LLP acted as legal counsel. Intrepid Partners LLC and Evercore were financial advisers to Crestwood, and Vinson & Elkins LLP was legal counsel.
In May, the University of Texas at Arlington announced that Energy Transfer Executive Chairman and Chairman of the board Kelcy Warren made a $12 million gift to help elevate UTA to the forefront of the growing resource and energy engineering (REE) field.
The funding will be used to fuel faculty and research excellence in the College of Engineering’s new REE bachelor’s degree program “while providing students with life-changing opportunities for educational and career success in REE and beyond,” the university said.
“I am honored to give back to the institution that has played such a pivotal role in advancing my educational and professional journeys,” Warren, who graduated from UTA in 1978 with a BS in civil engineering, said in a statement. “Texas faces a critical need for highly skilled graduates who can manage energy resources, and this innovative REE program will help meet that demand.”
Get on the list.
Dallas Innovates, every day.
Sign up to keep your eye on what’s new and next in Dallas-Fort Worth, every day.
R E A D N E X T
-
Energy Transfer LP, a Dallas-based midstream energy company, will acquire Lotus Midstream Operations LLC, based in Sugar Land, for $1.45 billion in a deal that includes $900 million in cash and approximately 44.5 million newly issued Energy Transfer common units. The acquisition will add Centurion Pipeline Company LLC, an integrated, crude midstream platform in the Permian Basin, to Energy Transfer's portfolio.
-
Dallas-based Cypress Growth Capital is defying norms in the funding landscape. Not your traditional venture capitalist, this trailblazing firm hit a landmark with its 50th portfolio investment—and fourth major play this year—a $4 million stake in medical records disruptor, ChartSquad. Managing Director Vik Thapar peels back the curtain on the firm's unique model, which fosters rapid growth without diluting entrepreneurial control.
-
Dallas-based energy companies HF Sinclair Corp. and Holly Energy Partners LP have agreed to merge in a what Reuters said is a $1.44 billion deal that will simplify corporate structure, reduce costs, and further support the integration and optimization of the HF Sinclair portfolio. “We are pleased to announce this strategic transaction which we believe simplifies our corporate structure, reduces costs and further supports the integration and optimization of our portfolio," HF Sinclair’s Chief Executive Officer and President Tim Go said in a statement. "We expect the transaction to be accretive to earnings per share and available free cash flow…
-
Pearl manages roughly $1.9 billion of cumulative capital commitments across a series of energy-focused funds. Its newest fund, which was raised from "a diverse group of existing and new investors," represents the largest investment vehicle in Pearl’s history.
-
Fuel cells for cars? Think bigger—because Toyota sure is. After developing hydrogen fuel cell technology for over 25 years, mostly aimed at carbon-zero vehicles, the company is scaling up the tech for uses far beyond cars. Now it's working with the U.S. government to build a system that can add energy to the grid, power things like data centers, and more.
