Over the past four years, Energy Transfer (ET) has completed several major acquisitions, all aimed at giving the company the additional size and reach it will need to compete in an increasingly consolidated midstream sector. On Wednesday, ET announced one of its biggest purchases yet: a $7.1 billion deal to acquire Crestwood Equity Partners, which has extensive gathering and processing assets in the Permian, Powder River and Williston basins, as well as NGL terminal and storage facilities east of the Mississippi. In today’s RBN blog, we look at how the addition of Crestwood’s holdings will extend ET’s value chain and complement its fractionation assets at Mont Belvieu and its export capabilities at both its Nederland and Marcus Hook terminals.
Dallas-based Energy Transfer has been on an M&A roll for a while now, and the big chunks of processing plants, pipelines and other midstream assets it’s been acquiring have been coalescing into what seems like a very logical whole. We’ll get to ET’s big-picture plan in a moment.
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We’ll start with the specifics of the Crestwood deal, which calls for ET to acquire the smaller midstream company for about $3.8 billion in ET stock and the assumption of $3.3 billion in debt. In the Williston Basin (aka the Bakken) in western North Dakota (map to left in Figure 1), Crestwood, a master limited partnership (MLP), owns the Arrow and Rough Rider gathering systems, which together have the capacity to gather up to 250 Mb/d of crude oil, 420 MMcf/d of natural gas and 420 Mb/d of produced water. It also owns four gas processing plants with a combined capacity of 430 MMcf/d and the COLT Hub, which has 1.2 MMbbl of crude oil storage capacity and the ability to load up to 160 Mb/d into rail tank cars.
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About the song
“Building the Perfect Beast” was written by Don Henley and Danny Kortchmar, and it appears as the sixth song on Don Henley’s second solo studio album of the same name. Recorded in 1983-84 at Record One, Bill Schnee Studio, and The Villa in Los Angeles, the album was produced by Don Henley, Danny Kortchmar, Greg Ladanyi, and Mike Campbell. Released in November 1984, the album went to #13 on the Billboard Top 200 Albums chart. It has been certified 3x Platinum by the Recording Industry Association of America (RIAA). “The Boys of Summer” single from the album won a Grammy Award for Best Male Rock Vocal Performance in 1985. Five singles were released from the LP. Personnel on the song “Building the Perfect Beast” were: Don Henley (lead, harmony vocals, percussion, synthesizer), Danny Kortchmar. (guitar, synthesizer, percussion, chant voices), Michael Boddicker (programming, sequencing), Albhy Galuten (Synclavier), Keith McCormick (African drums), Martha Davis, Patty Smyth, J.D. Souther, Waddy Wachtel, Michael O'Donoghue, and Carla Olson (chant voices), and Patty Smyth (harmony vocals).
Don Henley is an American musician, singer, songwriter, drummer, record producer, and founding member of the Eagles. As a solo artist, he has released five studio albums, two compilation albums, and 27 singles. As a member of The Eagles, he has released seven studio albums, two live albums, 10 compilation albums, and 30 singles. The Eagles have sold more than 150 million records worldwide and have 49 Platinum records, as certified by the RIAA. The Eagles have won numerous awards and were inducted into the Rock and Roll Hall of Fame in 1998. Henley is said to be the fourth-wealthiest drummer in the world behind Ringo Starr, Phil Collins, and Dave Grohl. He still records and tours.
Comments
Wow, It will be great to see the comparsion between enterprise and energytransfer as assets and capacities. Good one tho