Crestwood Equity, Crestwood Midstream to merge

|About: Crestwood Equity Partners LP (CEQP)|By:, SA News Editor

Crestwood Equity Partners (NYSE:CEQP) and Crestwood Midstream Partners (NYSE:CMLP) agree to merge into a single publicly-traded partnership with a consolidated enterprise value of ~$7.5B.

CMLP unitholders will receive 2.75 units of CEQP for each CMLP unit they own, representing a 17% premium to CMLP's closing price yesterday; the company will continue to be listed on the NYSE under the ticker CEQP.

As a result of the consolidation, Crestwood estimates another $5M of incremental cost savings can be achieved and added to the $25M-$30M run-rate savings identified as a part of 2015 cost reduction initiatives.

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