Crestwood Hits a High Note in the Delaware
Houston-based Crestwood Equity Partners last year made two strategic moves that saw the company exit its gathering and processing operations in the Marcellus and muscle up its midstream presence in the Permian’s Delaware and the Bakken. Both have paid off handsomely.
Reese Energy Consulting is following the latest news from Crestwood, which operates crude, natural gas, and produced water systems in the Williston, Powder River, and Permian, along with storage and crude oil and NGL logistics across the central and eastern U.S.
The company today reported a strong 1Q, following its 2022 acquisitions of Oasis Midstream for $1.8 billion and Sendero for $600 million. The Oasis purchase added to Crestwood’s core assets in the Bakken and Delaware. Sendero more than doubled Crestwood’s gas processing capacity in the Delaware to 550 MMCFD. The company reported 1Q net income of $41.6 million—an increase of 87% year over year—compared to $22.2 million in the same period in 2022. Among its 1Q highlights, Crestwood’s Delaware gathering volumes averaged 495 MMCFD, an increase of 111%. Processing volumes there averaged 403 MMCFD, an increase of 244%. Storage and logistics revenues increased 55%.