Industry Briefs

Crestwood Midstream Partners LP has agreed to acquire Tristate Sabine LLC from affiliates of Energy Spectrum Capital, Zwolle Pipeline LLC and Tristate management for $65 million in cash at closing plus a deferred payment of $8 million one year later. The entities to be acquired own and operate 52 miles of gas gathering pipelines in Sabine Parish, LA, known as the Tristate System, which serves Haynesville and Bossier shale production from the Toledo Bend South field area for delivery to Gulf South Pipeline and Tennessee Gas Pipeline. Contracts dedicate about 20,000 acres under long-term, fixed-fee arrangements, and capacity is being expanded to 100 MMcf/d for gathering and 80 MMcf/d for treating. The acquisition is expected to close on Nov. 1 and will be financed with borrowings under Crestwood’s credit facility.

October 19, 2011