Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Inergy to Merge With Crestwood Midstream

Aimed at creating a midstream entity with an enterprise value of $7 billion, natural gas storage and transportation operators Inergy (NYSE: CEQP  ) and Crestwood Midstream (UNKNOWN: CMLP.DL  ) today jointly announced a merger agreement that would yield a diverse platform of assets providing a broad range of services across the most important natural gas regions in the country, including the Bakken, Marcellus, and Eagle Ford shale formations.

Because the two companies provide complementary services, they expect the combination will create attractive operational and financial synergies while at the same time enhancing their scale and diversification, making the new company a formidable competitor for major greenfield development and acquisition opportunities.

Under the terms of the complex agreement, Crestwood Midstream and its affiliate, Crestwood Holdings, will take over Inergy and a related master limited partnership, Inergy Midstream (UNKNOWN: NRGM.DL  ) . Crestwood Midstream unitholders will receive 1.070 common units of Inergy Midstream for each unit of Crestwood Midstream they own, a 5% premium to the 20-day price of Crestwood's common units. 

Additionally, Crestwood Midstream public unitholders other than Crestwood Holdings will receive a one-time cash payment at closing of the merger of approximately $35 million, or $1.03 per unit, $25 million of which will be payable by Inergy Midstream and approximately $10 million of which will be payable by Crestwood Holdings.  

Describing the combination as a merger of equals, Crestwood CEO Robert G. Phillips said: "With this combination, we will truly begin to experience the power of the value chain growth strategy by offering our customers a more comprehensive and competitive suite of services that enables us to capture incremental fee opportunities that expand margins and maximize returns on investment."

Crestwood Midstream is controlled by private equity firm First Reserve, which currently owns all of Crestwood Holdings and owns about 43% of Crestwood Midstream's limited partner units. After the merger, both Inergy and Inergy Midstream will continue to trade on the New York Stock Exchange.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2410820, ~/Articles/ArticleHandler.aspx, 9/25/2016 3:18:12 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:02 PM
CEQP $20.72 Down -0.11 -0.53%
Inergy CAPS Rating: **
CMLP.DL $0.00 Down +0.00 +0.00%
Crestwood Midstrea… CAPS Rating: *****
NRGM.DL $0.00 Down +0.00 +0.00%