01.10.15. Crestwood Equity Partners LP and Crestwood Midstream Partners LP have closed the merger between the two partnerships following approval of the merger by Crestwood Midstream’s unit holders.
Crestwood Equity’s common units will continue to trade on the New York Stock Exchange under the symbol CEQP.
“We appreciate the support of a substantial majority of the Crestwood Midstream unitholders who voted in favour of the merger. We believe the merged partnership will be better positioned to create long-term value for our unitholders with the simplified structure and lower costs that result from the combination,” commented Robert G Phillips, chairman, president and CEO. “Crestwood remains focused on delivering solid operational results during the remainder of 2015 and new project development opportunities around our existing platform despite the uncertainty created by the current commodity cycle and its impact on midstream MLP valuations in the capital markets. With the merger complete, Crestwood is well positioned in 2016 and beyond to expand our business through long-term infrastructure investments in the areas that we operate.”
Michael France, managing director of First Reserve, the substantial owner of Crestwood’s general partner added: “We are pleased to see significant limited partner support for the merger and believe this is the next step to realizing the full potential of Crestwood’s business. We know it is a difficult period for the energy industry, but we remain committed to assisting in the growth and development of Crestwood’s operating platform, which First Reserve believes is located in some of the most prolific shale plays in the US. While it might take some time to fully realise the benefits of these opportunities, given the current commodity cycle, the simplified partnership structure should make Crestwood more competitive for growth opportunities and therefore more attractive to long-term midstream investors.”