HOUSTON--(BUSINESS WIRE)--
Crestwood Equity Partners LP (NYSE:CEQP) (“Crestwood” or “CEQP”) today
announced that it has completed a 1-for-10 reverse split on its common
units. Pursuant to the reverse split, common unitholders automatically
received one common unit for every 10 common units owned. All fractional
units created by the reverse unit split were rounded to the nearest
whole unit.
Under the mechanics of the reverse split, Crestwood’s common units
outstanding, unit price and quarterly distribution were all adjusted
proportionally. As adjusted for the reverse split: Crestwood’s common
unit count was reduced from approximately 685.5 million outstanding to
approximately 68.6 million outstanding; Crestwood’s unit price of $1.93
per unit, as of close of business November 23, 2015, would be adjusted
to $19.30 per unit; and Crestwood’s third quarter distribution of
$0.1375 per limited partner unit ($0.55 per unit annualized), which was
paid November 13, 2015, was not adjusted. However, the third quarter
distribution, if it were paid after the effective date of the reverse
split, would have been $1.375 per limited partner unit ($5.50 per unit
annualized).
Crestwood recognizes that the impact of the reverse split on quarterly
distributions has been unclear to a number of unitholders and this
uncertainty has been a potential driver of increased daily trading
volumes over the last several days leading up to the effective date. For
greater clarity, the reverse split does not in any way affect
Crestwood’s ability to pay distributions. The reasons for implementing
the reverse split, as described in the October 22, 2015 announcement,
are to mitigate investor concerns and relieve ownership constraints
which have negatively affected the ability of certain investors to own
CEQP units at the pre-split price level.
The units will begin trading on a split-adjusted basis today, November
24, 2015. Crestwood will continue to trade on the New York Stock
Exchange under the ticker symbol “CEQP.” Crestwood’s new CUSIP number
for its common units is 226344 208.
About Crestwood Equity Partners LP
Houston, Texas, based Crestwood Equity Partners LP (NYSE: CEQP) is a
master limited partnership that owns and operates midstream businesses
in multiple unconventional shale resource plays across the United
States. Crestwood Equity is engaged in the gathering, processing,
treating, compression, storage and transportation of natural gas;
storage, transportation, terminalling, and marketing of NGLs; and
gathering, storage, terminalling and marketing of crude oil.
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Source: Crestwood Equity Partners LP