Crestwood Midstream acquires remaining interest in Marcellus Shale joint venture Crestwood Midstream announced that it has purchased the remaining 65% interest in Crestwood Marcellus Midstream from Crestwood Holdings Partners for $258M. The transaction is expected to be 7-8% accretive to Crestwood's 2013 distributable cash flow on a fully diluted basis and was funded with $129M of cash drawn on Crestwood's existing revolving credit facility and approximately 6.2M new Crestwood Class D units issued to Crestwood Holdings. As a part of the consideration received for the transaction, Crestwood Holdings is maintaining its 2% general partner interest in Crestwood. Crestwood does not expect any additional capital markets activity related to this transaction.
Crestwood Equity Crestwood Midstream weakness overdone, says Wells Fargo After Crestwood Equity Partners LP(CEQP) and Crestwood Midstream Partners LP(CMLP) underperformed their broader group over the past month, Wells Fargo thinks the underperformance was driven by Quicksilver Resource's (KWK) financial struggles, concerns regarding gas storage fundamentals as it impacts Tres Palacios, and a decline in crude prices driving reduced activity in the Bakken. The firm believes that these concerns are legitimate, but it does not view them as new and calls the weakness in the stocks overdone. It keeps a Market Perform rating on Crestwood Equity Partners and an Outperform rating on Crestwood Midstream Partners.