DALLAS — Energy Transfer, a Dallas-based natural gas company, announced Wednesday they would be acquiring the Houston-based natural gas company Crestwood Equity Partners in a definitive merger agreement valued at about $7.1 billion.
The transaction, which includes the assumption of $3.3 billion of debt, is expected to close near the end of 2023, depending on regulatory approvals, the approval of Crestwood shareholders and other closing conditions, Energy Transfer announced in a press release.
Crestwood acquisitions would include the company's gathering and processing assets found in West Texas, Wyoming and the Dakotas, which includes more than 3.4 billion cubic feet per day of gas processing capacity and 340 thousand barrels a day of crude gathering capacity.
This acquisition is also expected to benefit Energy Transfer's business by adding terminal and storage assets, providing the company an additional 10 million barrels of storage capacity along with trucking and rail terminals.
In an investor presentation, Energy Transfer said it expects the merger to benefit all shareholders by the additional scale and integration of the acquisition.
"CEQP’s substantial processing capacity in the Williston and Delaware basins complements ET’s significant downstream fractionation capacity at Mont Belvieu and hydrocarbon export capability from both Nederland, Texas and the Marcus Hook complex in Philadelphia, Pennsylvania," Energy Transfer said in the presentation.
Dallas billionaire Kelcy Warren is the executive chairman of Energy Transfer, which has a long track record of acquisitions and mergers, including Transwestern Pipeline in 2006, Sunoco in 2012, and most recently, Lotus Midstream earlier this year. The company owns one of the largest portfolios of energy assets in the US, including nearly 125,000 miles of pipeline and associated infrastructure.
