Crestwood expands investment in shale venture
HOUSTON (AP) — Crestwood Midstream Partners LP has acquired the remaining 65 percent interest that it didn't own in a shale gas venture in West Virginia.
Crestwood said on Tuesday that it paid $258 million to acquire the remaining interest in Crestwood Marcellus Midstream LLC, which is developing the site in the southwestern portion of the Marcellus Shale. The Marcellus is a wide swath of rich gas land spanning from northern Virginia to Ohio on the west and New York to the north.
The Houston company bought the stake from Crestwood Holdings Partners LLC, which is controlled by First Reserve Corp.
Crestwood Marcellus Midstream was formed to allow Crestwood Midstream to acquire an interest in the Marcellus shale business without putting excessive stress on the partnership's balance sheet.
Crestwood Midstream expects the deal will increase its distributable cash flow — the money that can be paid to the company's unit holders after payments to its general partner — by 7 to 8 percent this year.
Shares of Crestwood Midstream rose 18 cents to close at $23.26 Tuesday.