The synergy of Crestwood and Inergy companies is expected to provide a diverse platform of midstream assets that will offer services in premier shale plays in North America, including the Marcellus Shale, Bakken Shale, Eagle Ford Shale, and Permian Basin.
The new company will also serve Powder River Basin Niobrara Shale, Utica Shale, Barnett Shale, Fayetteville Shale, Granite Wash, Haynesville Shale, and Monterey Shale, in North America.
Partnership between the companies will also improve financial flexibility and increase acquisition opportunities across the midstream value chain.
As per the terms of the agreement, Crestwood Holdings will acquire the general partner of Inergy and will contribute to the general partner and incentive distribution rights of Crestwood Midstream to Inergy.
In addition, Crestwood Midstream will be merged with a subsidiary of Inergy Midstream.
Crestwood chairman, president and CEO Robert G. Phillips said, "We view this transaction as a merger of equals through which we are creating a larger, more diversified operating platform that will be highly attractive to investors, customers, creditors and employees."
