logo
  Join        Login             Stock Quote

Crestwood (CMLP) Announces Merger With Inergy

 May 06, 2013 07:36 AM
 


(By Balachander) Crestwood Midstream Partners LP (NYSE: CMLP), Inergy L.P. (NYSE: NRGY) and Inergy Midstream L.P. (NYSE: NRGM) have agreed to merge through a series of transactions, creating a midstream energy partnership with a total enterprise value of roughly $7 billion. 

Houston, Texas based Crestwood is a growth-oriented, midstream master limited partnership which owns and operates predominately fee-based gathering, processing, treating and compression assets servicing natural gas producers. Kansas City, Missouri-based Inergy L.P.'s operations include a natural gas storage business in Texas and an NGL supply logistics, transportation and marketing business. Inergy Midstream is engaged in the development and operation of natural gas, NGL and crude oil storage, transportation, and logistics businesses. 

[Related -Stocks Close Mixed; Apple (AAPL) Rises Over 2 Pct]

Under the terms of the agreement, Crestwood will acquire the general partner of Inergy L.P. for $80 million in cash in the first transaction. 

In the second deal, Crestwood will contribute to Inergy L.P. 100 percent of its interest in Crestwood Gas Services GP LLC in exchange for 35.1 million common units and 4.4 million subordinated units of Inergy L.P.

[Related -Are These High-Yield Stocks About To Cut Their Dividend?]

In the final transaction, Crestwood Midstream will be merged into a subsidiary of Inergy Midstream. Crestwood Midstream unitholders will receive 1.070 units of Inergy Midstream for each unit of Crestwood Midstream they own. In addition, all Crestwood Midstream public unitholders other than Crestwood Holdings will receive a one-time cash payment at closing of roughly $35 million in the aggregate, or $1.03 per unit, $25 million of which will be payable by Inergy Midstream and about $10 million of which will be payable by Crestwood Holdings. 

The pro forma enterprise is expected to generate around $450 million of 2013 estimated EBITDA and to have a total enterprise value of greater than $7 billion, including both Inergy L.P. and Inergy Midstream.

The companies expect to fully realize financial synergies of about $15 million to $20 million on an annual run rate within the next 24 months.

CMLP shares ended Friday's regular trading at $23.85. NRGY closed at $22.30, while NRGM ended at $24.55.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageChipotle Mexican Grill, Inc. (CMG) Q2 Earnings Preview: Will Higher Traffic Offset Higher Costs the Key

Chipotle Mexican Grill, Inc. (NYSE:CMG) will host a conference call to discuss second quarter 2014 read on...

article imageNetflix, Inc. (NFLX) Q2 Earnings Preview: The Ruby Month for a Reason

Netflix, Inc. (NASDAQ:NFLX) will post its second-quarter 2014 financial results and business outlook on its read on...

article imageLadenburg Thalmann Financial Services (NYSEMKT:LTS): Heavy, Durable Insider Buying

Ahh, but any worries over price levels didn’t stop multiple insiders at Ladenburg Thalmann Financial read on...

article imageInternational Business Machines Corp. (IBM) Q2 Earnings Preview: Small Beat and Pop

International Business Machines Corp. (NYSE:IBM) will host a conference call Wednesday, Jul. 16, 2014 at read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

The 2013 Dividend Achievers
More Articles on: Oils/Energy



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.