April 2012, Vol. 239 No. 4
Projects
Crestwood To Acquire Antero Resources Marcellus Gathering Assets
Crestwood Midstream Partners LP, Crestwood Holdings Partners LLC and Antero Resources Appalachian Corporation announced execution of definitive agreements whereby CMLP and Crestwood Holdings, through a newly formed joint venture (“Crestwood Marcellus Midstream”), will acquire certain Antero’s Marcellus Shale gathering system assets located in Harrison and Doddridge counties, West Virginia for $375 million in cash plus an earn-out which would allow Antero to earn additional purchase price payments of up to $40 million based upon average annual production levels achieved during 2012 and 2013.
Additionally, at closing, the parties have agreed to enter into a 20-year gas gathering and compression agreement, which will provide for an Area of Dedication of 127,000 gross acres, or 104,000 net acres, largely located in the rich gas window of the southwestern core of the Marcellus Shale play.
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