Page 12 - NorthAmOil Week 21 2022

NorthAmOil NEWS IN BRIEF NorthAmOil

POLICY UPSTREAM financial, commercial and operational
flexibility. Both transactions are highly
Legislation requiring oil Crestwood announces synergistic and will drive meaningful
accretion to our distributable cash flow for
refiners to post profits strategic Delaware Basin many years to come.”
Mr. Phillips continued: “Today’s
per gallon monthly clears acquisitions and divestiture announcement also marks the culmination
of our long-term investment and operating
Senate, says Consumer of its non-core Barnett footprint in the Barnett shale. The Barnett
shale is where Crestwood started dating back
Watchdog shale assets to October 2010 and I want to personally
thank our field employees for their hard
A bill requiring oil refiners to disclose their Crestwood Equity Partners today announced work, dedication, and loyalty over the past
per gallon profits month passed out of the it has entered into a series of agreements twelve years, as they have fully embodied
California Senate by a vote of 22 to 4 and will under which the company will i) acquire Crestwood’s core principles with an
now be heard in the California Assembly. Sendero Midstream Partners for $600mn in unwavering commitment to operational safety
SB 1322 (Allen) requires the oil refiners to cash, ii) acquire First Reserve’s 50% equity and performance. We are excited to pass
disclose monthly their refining profits -- the interest in Crestwood Permian Basin Holdings the torch to EnLink Midstream who shares
difference between average cost they pay for (CPJV) for $320mn in Crestwood common Crestwood’s commitment to operational
a barrel crude oil and the average price they units, plus the assumption of asset level debt, excellence and corporate stewardship. As
charge for the finished barrel of gasoline, and iii) divest its legacy, non-core Barnett we close this chapter in Crestwood’s history,
minus their expenses. With 42 gallons in a shale assets to EnLink Midstream for $275mn we will continue to focus on building and
barrel, we will know exactly how much oil in cash. The transactions are expected to close optimising our sizeable gathering and
refiners make per gallon of gas in California. early in the third quarter 2022, subject to processing positions in the Williston Basin,
As of today, Californians are paying $1.30 customary regulatory approvals. Delaware Basin, and Powder River Basin.
more gallon for their gasoline than the average “I am thrilled to announce this series of We believe the strategic actions we are taking
US driver. Environmental costs add about 60 strategic transactions that greatly enhance the today to divest a legacy asset to core up our
cents per gallon. Crestwood franchise by creating immediate position in one of the most prolific, economic,
“Consumers deserve to know how much scale and additional runway in the Delaware and active basins in North America, best
oil refiners are making off their pain at Basin, high-grading our cash flow mix positions Crestwood to deliver long-term
the pump,” said Jamie Court, president of through the rationalisation of non-core value creation for our unitholders.”
Consumer Watchdog. “Recent quarterly assets, and successfully maintaining our CRESTWOOD EQUITY PARTNERS, May 25,
profit reports suggest California oil refiners conservative balance sheet and financial 2022
are pocketing $1 per gallon or more off flexibility,” commented, Robert G. Phillips,
the recent price spikes at the pump. That’s Founder, chairman, and chief executive officer
unconscionable.” of Crestwood. “The acquisition of Sendero MIDSTREAM
The senators who voted in support were Midstream is highly complementary to our
Senators Allen, Atkins, Becker, Cortese, Dodd, existing Willow Lake assets, provides excess EnLink Midstream Agrees
Durazo, Eggman, Gonzalez, Hueso, Kamlager, processing and compression capacity for
Laird, Leyva, Limón, McGuire, Portantino, current and future customer development to Acquire North Texas
Roth, Rubio, Skinner, Stern, Umberg, activity, and solidifies Crestwood’s footprint
Wieckowski, and Wiener in the leading North American shale play. Gathering and Processing
Opposed to the disclosure were Senators Furthermore, the consolidation of First
Dahle, Jones, Nielsen, Wilk. Reserve’s equity interest in CPJV simplifies System
CONSUMER WATCHDOG, May 24, 2022 our corporate structure and drives enhanced
EnLink Midstream announced today that
it has entered into a definitive agreement to
acquire North Texas gathering and processing
assets from Crestwood Equity Partners
for $275mn, subject to certain customary
adjustments and regulatory approval. The
adjacency of the assets to EnLink’s North
Texas footprint provides significant synergies
and the opportunity to redeploy assets to
EnLink’s other areas of operation, resulting
in significant capital avoidance and driving
attractive transaction economics.
“We are very pleased to announce the
agreement to acquire this gathering and
processing system in North Texas, which
is composed of assets that are highly
complementary to EnLink’s, both in North

P12 www. NEWSBASE .com Week 21 26•May•2022