When last we visited Houston-based Crestwood Equity Partners in 2021, the midstream operator had wrapped up a year of transformative change. Starting with the $400 million buy back in March of the 24% stake held by its PE firm, Crestwood and its Marcellus partner in June closed on a $1.23 billion deal to sell Stagecoach Gas Services. The purchase of Oasis Midstream in October added even more gathering and processing muscle to its existing Delaware position, along with a pro forma enterprise value of $7 billion. But Crestwood wasn’t done yet—and certainly not in the Delaware.
Reese Energy Consulting today is following the latest news from Crestwood, which operates gathering and processing systems in the Williston, Powder River, Marcellus, Barnett, and Delaware. With the recent sale of its Barnett shale assets to EnLink for $275 million, Crestwood will pay $600 million in cash for Houston-based Sendero Midstream—a pure play Delaware operator. The acquisition more than doubles Crestwood’s Permian processing capacity to 550 MMCFD and adds 140 miles of gathering lines, 53,000+ hp of gathering compression, 75,000 dedicated acres, and a slew of long-term fixed fee contracts with producers.