Crestwood Announces Additional Marcellus Shale Agreement With Antero Resources
HOUSTON, TX -- (Marketwire) -- 03/12/13 -- Crestwood Midstream Partners LP (CMLP) ("Crestwood" or the "Partnership") today announced an agreement with Antero Resources Appalachian Corporation ("Antero") to provide natural gas compression services on developing rich gas acreage in Doddridge County, West Virginia. The new seven year compression services agreement will allow for Crestwood to construct, own and operate a compressor station on Antero's Western Area acreage ("Western Area") which is not dedicated to Crestwood under the existing 20 year gathering and compression agreement which covers the Eastern Area of Dedication ("Eastern AOD"). The new compression services agreement provides for fixed-fee compression services and minimum volume commitments similar to the existing Eastern AOD contract.
A new Western Area compressor station will be located, designed and installed by Crestwood as requested by Antero and in conjunction with their drilling and development program and the expansion of local gathering and processing infrastructure. The new agreement does not impact Crestwood's seven year right of first offer to acquire midstream infrastructure from Antero in the Western Area and is in addition to the previously announced construction of two compressor stations, Morgan and Perkins, being constructed by Crestwood in the Eastern AOD during 2013.
The compressor station to be constructed under the new agreement will be the West Union Station, a two phase project adding approximately 120 million cubic feet per day ("MMcf/d") of flow capacity at an estimated cost of $35 million which was included in Crestwood's previously announced 2013 capital guidance. West Union Phase I, which adds 55 MMcf/d of capacity, is expected to be in service in early third quarter 2013. West Union Phase II will add 65 MMcf/d of capacity and is expected to be in service by year end 2013.
"We are pleased to expand our relationship with Antero to include additional services outside of the existing area of dedication under another long term, fee-based contract," stated Robert G. Phillips, Chairman, President and Chief Executive Officer of Crestwood's general partner. "The West Union Station is a critically important piece of the midstream infrastructure which Antero is developing for their rich gas acreage and we are committed to a timely installation of the project."
About Crestwood Midstream Partners LP
Houston, Texas based Crestwood is a growth-oriented, midstream master limited partnership which owns and operates predominately fee-based gathering, processing, treating and compression assets servicing natural gas producers in the Barnett Shale in north Texas, the Fayetteville Shale in northwest Arkansas, the Granite Wash in the Texas Panhandle, the Marcellus Shale in northern West Virginia, the Avalon Shale/Bone Spring in southeastern New Mexico, and the Haynesville/Bossier Shale in western Louisiana. For more information about Crestwood, visit www.crestwoodlp.com.
The statements in this news release regarding future events, occurrences, circumstances, activities, performance, outcomes and results are forward-looking statements. Although these statements reflect the current views, assumptions and expectations of Crestwood's management, the matters addressed herein are subject to numerous risks and uncertainties which could cause actual activities, performance, outcomes and results to differ materially from those indicated. Such forward-looking statements include, but are not limited to, statements about the future financial and operating results, objectives, expectations and intentions and other statements that are not historical facts. Factors that could result in such differences or otherwise materially affect Crestwood's financial condition, results of operations and cash flows including, without limitation, changes in general economic conditions; fluctuations in oil, natural gas and NGL prices; the extent and success of drilling efforts, as well as the extent and quality of natural gas volumes produced within proximity of our assets; failure or delays by our customers in achieving expected production in their natural gas projects; competitive conditions in our industry and their impact on our ability to connect natural gas supplies to our gathering and processing assets or systems; actions or inactions taken or non-performance by third parties, including suppliers, contractors, operators, processors, transporters and customers; our ability to consummate acquisitions, successfully integrate the acquired businesses, realize any cost savings and other synergies from any acquisition; changes in the availability and cost of capital; operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control; timely receipt of necessary government approvals and permits, our ability to control the costs of construction, including costs of materials, labor and right-of-way and other factors that may impact our ability to complete projects within budget and on schedule; the effects of existing and future laws and governmental regulations, including environmental and climate change requirements; the effects of existing and future litigation; and risks related to our substantial indebtedness, as well as other factors disclosed in Crestwood's filings with the U.S. Securities and Exchange Commission. You should read our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2012, and our most recent Quarterly Reports and Current Reports for a more extensive list of factors that could affect results.
Investor Contact: Mark Stockard 832-519-2207 email@example.com
Source: Crestwood Midstream Partners LP