| Investments |
Crestwood’s uniquely qualified management team with unparalleled midstream
experience and relationships provides the firm with knowledge and access to
an array of midstream investment opportunities. Coupled with Kayne Anderson’s,
Blackstone's and GSO's long term energy industry presence and investment experience,
Crestwood is well positioned to evaluate and participate in a broad range
of transactions which may originate from both the capital markets and industry
sources. Although our investment strategies may evolve over time, our objective
is to leverage our management depth and experience to invest in midstream
assets, people and businesses across the midstream value chain, seek opportunities
which will benefit from strong industry fundamentals and optimize our investments
through our extensive operating background and customer relationships.
| Asset Acquisitions |
Crestwood’s management team has the background to assess a broad range of investment opportunities including traditional gathering and processing, transportation, fractionation and storage, offshore pipelines and platforms, terminals and marketing. As an acquiror of exsting midstream assets and businesses, Crestwood will seek opportunities to selectively acquire and integrate assets with upstream or downstream facilities and optimize the value for investors while improving customer services. Focusing on regions or sectors of the industry where growth potential will lead to expansion opportunities, Crestwood can fully value assets and businesses through enhancement strategies and operating efficiencies.
| Organic Partnerships |
Crestwood can be viewed as an alternative capital source on new organic opportunities by forming a partnership with a midstream project developer who seeks equity growth capital, access to financing in debt markets and project development resources. Being more than just a financial partner, Crestwood can provide a valuable source of strategic advice from our involvement in numerous infrastructure development projects.
| Private to Public MLP Opportunities |
In recent years, master limited partnerships have proven to be the preferred format for the ownership of qualifying midstream assets due to their low cost of capital and tax deferral benefit. In the current market, energy producers and consumers now recognize the importance of investing in infrastructure projects to enhance the value of their production or to improve supply sources and reliability. Others may desire to monetize their investment in some or all of their midstream assets or finance growth in new critical infrastructure developments. Through a partnership to form a private midstream MLP, Crestwood can design a structure to maximize the sponsors’ investment value while retaining operating control and the option to access the public markets when the entity reaches the appropriate size and scale.
| Long Term Focus |
Crestwood and its investors are long
term value investors. Our capital has no current
pay obligation and can be deployed in a manner which enables a business or
asset to retain cash flow while it grows. This feature makes Crestwood an
attractive partner in greenfield or organic growth projects and allows us
to compete effectively for acquisitions with MLP’s which typically require
immediate cash accretion from its investments to support growing cash distribution
requirements.