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Monday, Oct 7
Crestwood seeking liquids midstream deals after merger
- Crestwood Midstream Partners (CMLP -0.9%), whose shareholders approved its merger with Inergy Midstream (NRGM), is on the hunt for more assets to expand its oil and natural gas liquids business, focusing on shale regions such as the Marcellus shale, CEO Robert Phillips tells Bloomberg.
- CMLP may target businesses of $100M-$1B in size, depending on how a deal could be financed, Phillips says; he's aiming for an investment grade rating from the credit agencies, and CMLP needs ~$500M in annual free cash flow to achieve it, which Phillips says "certainly" is within reach next year if it makes additional purchases.
- Phillips, former CEO at Enterprise Products Partners (EPD), says he’s a believer in EPD’s diversified portfolio; "We’re striving to replicate that business model. That’s the primary strategic rationale behind the Crestwood-Inergy merger."