Energy Transfer's Pipeline Network Surpasses 125,000 Miles with Crestwood Acquisition
By Mary Holcomb, Digital Editor
(P&GJ) — Energy Transfer LP has announced the completion of its previously announced merger with Crestwood Equity Partners LP. The merger was approved by Crestwood unitholders at its special meeting of unitholders held on October 30, 2023.
As a result of the acquisition, Energy Transfer now owns and operates more than 125,000 miles of pipelines and related assets in all the major U.S.-producing regions and markets across 41 states, further enhancing its leadership position in the midstream sector.
In August, Energy Transfer announced that it intended to buy rival Crestwood Equity Partners in a deal valued at about $7.1 billion including debt.
Under the agreement, Energy Transfer acquires a larger share of energy transport in three top shale basins, adding about 2 billion cubic feet per day (Bcf/d) of gas-gathering capacity, 1.4 Bcf/d of gas-processing capacity and 340,000 barrels per day (bpd) of crude-gathering capacity.
"These assets are expected to complement Energy Transfer’s downstream fractionation capacity at Mont Belvieu, as well as its hydrocarbon export capabilities from both its Nederland Terminal in Texas and the Marcus Hook Terminal in Philadelphia, Pennsylvania," Energy Transfer said in a statement when the deal was announced.
Additionally, the midstream company completed its $1.45 billion acquisition of Lotus Midstream Operations in May. With this acquisition, Energy Transfer added roughly 3,000 miles (4,800 km) of oil gathering and transportation pipelines spanning from southeast New Mexico across the Permian Basin of West Texas to Cushing, Oklahoma.
RELATED: Energy Transfer Eyes Permian Gas Pipeline, Starts Gulf Run Construction
The Crestwood transaction is immediately accretive to distributable cash flow per unit for Energy Transfer, and adds significant cash flows from firm, long-term contracts and significant acreage dedications.
Additionally, the combined operations of the two companies are expected to generate initial annual run-rate cost and efficiency synergies of at least $40 million before additional anticipated benefits of financial and commercial synergies.
Effective with the opening of the market on November 3, 2023, Crestwood’s common units and preferred units ceased trading on the New York Stock Exchange (NYSE).
Related News
Related News
![](/media/2035/pgj-enews-graphic-300x1404.jpg)
- Mexican President: Billionaire Slim Interested in Pemex Natural Gas Project
- Freeport LNG Sues Three Contractors Over Defects at Texas Plant
- Energy Transfer Adds 6,000 Miles of Pipeline with $3.25 Billion WTG Midstream Acquisition
- FERC Approves Transco's Texas to Louisiana Gas Pipeline Project
- Williams Says Court Rules in Its Favor in Pipeline Dispute with Energy Transfer
- U.S. to Buy 4.5 Million Barrels of Oil to Replenish Strategic Petroleum Reserve
- Kurdish Oil Smuggling to Iran Flourishes
- U.S. Court Overturns Alaska Oil Lease Sale, Halting Energy Development
- Second Gas Pipeline Rupture in Texas’ Reeves County Raises Environmental Concerns
- Williams Begins Louisiana Pipeline Construction Despite Ongoing Legal Dispute with Energy Transfer
Comments