Crestwood Midstream Partners (NYSE: CMLP ) is boosting its presence in the West with a new acquisition. The company today announced it has reached agreement to purchase a 50% stake in Jackalope Gas Gathering Services from privately held RKI Exploration & Production. The price is roughly $108 million.
In the press release announcing the news, the acquirer said Jackalope's Wyoming-based gathering and processing system "provides Crestwood with an early stage entrance into the emerging Powder River Basin Niobrara Shale play and positions Crestwood for significant future infrastructure development opportunities across the rich gas and crude oil midstream value chain."
The Powder River Basin is a large geological area spread across southeast Montana and northeast Wyoming. Sections of it are rich in energy resources such as coal and oil.
The other 50% of Jackalope is owned by Access Midstream Partners, which purchased its stake from Chesapeake Energy at the end of last year.
Crestwood expects the acquisition to close in Q3 of this year. It is subject to approval from regulatory bodies.