HOUSTON, TX, Nov 01, 2011 (MARKETWIRE via COMTEX) -- Crestwood Midstream Partners LPCMLP +0.68% ("Crestwood") announced today it has completed the previously announced acquisition of Tristate Sabine, LLC ("Tristate") from affiliates of Energy Spectrum Capital, Zwolle Pipeline, LLC and the Tristate management. Crestwood paid $65 million at closing which was funded with available capacity under Crestwood's revolving credit facility. An additional $8 million deferred purchase payment will be paid on November 1, 2012, subject to customary post-closing adjustments.
The acquired assets include approximately 61 miles of high-pressure natural gas gathering pipelines and carbon dioxide treating facilities located in Sabine Parish, Louisiana (the "Sabine System"). The Sabine System provides gathering and treating services for Haynesville and Middle Bossier Shale production from the Toledo Bend South field area for redelivery to Gulf South Pipeline and Tennessee Gas Pipeline. Crestwood is also acquiring gathering and treating contracts on the Sabine System which dedicate approximately 20,000 acres under long-term, fixed-fee arrangements. System capacity is currently being expanded to 100 million cubic feet per day ("MMcf/d") for gathering and 80 MMcf/d for treating. The expansion is expected to be completed during the fourth quarter of 2011, with the final remaining cost to be largely funded from working capital acquired with the acquisition. Following the expansion, gathering volumes are expected to be approximately 60 to 70 MMcf/d.
Source: Market Watch
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