HOUSTON--(BUSINESS WIRE)--
Crestwood Equity Partners LP (NYSE: CEQP) (“Crestwood” or “CEQP”)
announced today that Shell Midstream Partners, L.P. (NYSE: SHLX)(“Shell
Midstream”), a master limited partnership formed by Royal Dutch Shell
plc, exercised its option to purchase a 50% equity interest in the
Nautilus gas gathering system owned by Crestwood Permian Basin Holdings
LLC (“CPJV”), a 50%/50% joint venture with First Reserve and operated by
CEQP. The Nautilus system gathers the majority of Shell’s operated
Delaware Basin gas under a 20-year tiered, fixed-fee contract. The
closing of the acquisition is subject to a due diligence period and
customary closing conditions. Closing of the transaction is expected in
the fourth quarter of 2017.
Robert G. Phillips, Chairman, President and Chief Executive Officer of
Crestwood’s general partner, commented, “Crestwood and First Reserve are
thrilled to have Shell Midstream as a partner in the Nautilus gas
gathering system to support Shell’s long-term Delaware Basin development
plans. Crestwood and Shell Midstream both share an unwavering commitment
to common operating principles, safety and providing exceptional
customer service. The partnership with Shell Midstream will further
align CPJV’s and Shell’s long-term interests in the Delaware Basin and
we look forward to a long partnership.”
About Crestwood Permian Basin Holdings LLC
Crestwood Permian Basin Holdings LLC (“CPJV”) is a 50%/50% joint venture
between Crestwood Equity Partners LP and First Reserve, a leading global
private equity investment firm exclusively focused on energy, focused on
developing, owning and operating midstream infrastructure in the
Delaware Basin.
About First Reserve
First Reserve is a leading global private equity investment firm
exclusively focused on energy. With nearly 35 years of industry insight,
investment expertise and operational excellence, the Firm has cultivated
an enduring network of global relationships and raised approximately USD
$31 billion of aggregate capital since inception. First Reserve has
completed over 600 transactions (including platform investments and
add-on acquisitions), creating several notable energy companies
throughout the Firm’s history. Its portfolio companies operate on six
continents, spanning the energy spectrum from upstream oil and gas to
midstream and downstream, including resources, equipment and services,
and associated infrastructure. Visit us at www.firstreserve.com
for more information.
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 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.
Forward Looking Statements
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal securities law. Such forward-looking statements are
subject to a variety of known and unknown risks, uncertainties, and
other factors that are difficult to predict and many of which are beyond
management’s control. These risks and assumptions are described in
Crestwood’s annual reports on Form 10-K and other reports that are
available from the United States Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on forward-looking
statements, which reflect management’s view only as of the date made. We
undertake no obligation to update any forward-looking statement, except
as otherwise required by law.
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Source: Crestwood Equity Partners LP