Crestwood Holdings was formed in May 2010 through a partnership between First Reserve Corporation and a group of midstream industry veterans led by Robert G. Phillips, former CEO of several U.S. midstream energy entities, including Enterprise Products Partners, GulfTerra Energy Partners and El Paso Field Services. First Reserve is a premier global energy-focused private equity and infrastructure investment firm with $23.1 billion of raised capital since the Firm’s inception. For over 29 years, First Reserve has been focused on making investments exclusively across the entire energy value chain. First Reserve and Crestwood management have invested approximately $620 million of equity in Crestwood Holdings.
In October 2010, Crestwood Holdings acquired 100% of the general partner and 62% of the outstanding limited partner interest in Quicksilver Gas Services LP (NYSE:KGS) for $701 million, subsequently renamed the partnership Crestwood Midstream Partners LP and changed the ticker symbol on the New York Stock Exchange to CMLP. Since the KGS acquisition, Crestwood Holdings and CMLP have combined to complete an additional seven acquisitions totaling more than $1.2 billion. On January 8, 2013, Crestwood Holdings sold its 65% interest in Crestwood Marcellus Midstream to CMLP for $258 million.
Crestwood Holdings’ initial growth strategy in 2010 was to acquire a broad and diversified portfolio of traditional midstream assets providing fixed-fee gathering, processing, treating and compression services for producers in unconventional resource plays and developments. Since late 2011, due in part to the precipitous decline in natural gas prices, Crestwood Holdings shifted its focus to acquiring and developing primarily rich-gas midstream assets and operations due to their benefit of strong underlying production and development economics. In mid-2012, Crestwood Holdings announced a new growth strategy focused on the development of organic or greenfield infrastructure projects in the emerging rich-gas or crude oil based unconventional resource plays such as the Bakken, Niobrara, and Utica. To support this new initiative, Crestwood Holdings has recruited experienced business development and project management personnel and continues to provide strategic oversight and development capital on a project by project basis.
Crestwood Holdings owns 100% of Crestwood’s general partner and approximately 47% of Crestwood’s outstanding limited partner interests.