Devon Energy has signed an agreement with Crestwood Midstream Partners to sell some of its gathering and processing assets in the liquids-rich southwestern area of the Barnett Shale for $90m.

Crestwood will acquire a 74 mile low pressure natural gas gathering system, a 100 million cubic feet per day (mmcf/d) cryogenic processing facility and 23,100 horsepower of compression equipment located in the western portion of Johnson County, Texas.

The companies have also entered a 20-year fixed-fee gathering, processing and compression agreement under which Crestwood process Devon’s natural gas production.

Devon’s Johnson County pipeline system and processing plant are adjacent to Crestwood’s Cowtown gathering system which has two natural gas processing plants called the Cowtown plant and the Corvette plant with a combined processing capacity of about 325MMcf/d.

The company will consolidate the systems and increase the interconnection capacity to process Devon’s natural gas production in its plants.

The integration of the assets will result in cost savings, and provision of lower wellhead pressures, higher natural gas liquids recoveries and expanded market outlets for Devon.

The companies are expected to close the deal in the third quarter of 2012 following the approval of customary closing conditions.

US based Devon Energy is an independent oil and natural gas company where as Crestwood owns and operates fee-based gathering, processing, treating and compression assets.