HOUSTON--(BUSINESS WIRE)--Crestwood Equity Partners LP (NYSE: CEQP) (“Crestwood” or “CEQP”) announced today that Shell Midstream Partners, L.P. (NYSE: SHLX)(“Shell Midstream”), a master limited partnership formed by Royal Dutch Shell plc, exercised its option to purchase a 50% equity interest in the Nautilus gas gathering system owned by Crestwood Permian Basin Holdings LLC (“CPJV”), a 50%/50% joint venture with First Reserve and operated by CEQP. The Nautilus system gathers the majority of Shell’s operated Delaware Basin gas under a 20-year tiered, fixed-fee contract. The closing of the acquisition is subject to a due diligence period and customary closing conditions. Closing of the transaction is expected in the fourth quarter of 2017.
Robert G. Phillips, Chairman, President and Chief Executive Officer of Crestwood’s general partner, commented, “Crestwood and First Reserve are thrilled to have Shell Midstream as a partner in the Nautilus gas gathering system to support Shell’s long-term Delaware Basin development plans. Crestwood and Shell Midstream both share an unwavering commitment to common operating principles, safety and providing exceptional customer service. The partnership with Shell Midstream will further align CPJV’s and Shell’s long-term interests in the Delaware Basin and we look forward to a long partnership.”
About Crestwood Permian Basin Holdings LLC
Crestwood Permian Basin Holdings LLC (“CPJV”) is a 50%/50% joint venture between Crestwood Equity Partners LP and First Reserve, a leading global private equity investment firm exclusively focused on energy, focused on developing, owning and operating midstream infrastructure in the Delaware Basin.
About First Reserve
First Reserve is a leading global private equity investment firm exclusively focused on energy. With nearly 35 years of industry insight, investment expertise and operational excellence, the Firm has cultivated an enduring network of global relationships and raised approximately USD $31 billion of aggregate capital since inception. First Reserve has completed over 600 transactions (including platform investments and add-on acquisitions), creating several notable energy companies throughout the Firm’s history. Its portfolio companies operate on six continents, spanning the energy spectrum from upstream oil and gas to midstream and downstream, including resources, equipment and services, and associated infrastructure. Visit us at www.firstreserve.com for more information.
About Crestwood Equity Partners LP
Houston, Texas, based Crestwood Equity Partners LP (NYSE: CEQP) is a master limited partnership that owns and operates midstream businesses in multiple unconventional shale resource plays across the United States. Crestwood is engaged in the gathering, processing, treating, compression, storage and transportation of natural gas; storage, transportation, terminalling, and marketing of NGLs; and gathering, storage, terminalling and marketing of crude oil.
Forward Looking Statements
This press release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal securities law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. These risks and assumptions are described in Crestwood’s annual reports on Form 10-K and other reports that are available from the United States Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management’s view only as of the date made. We undertake no obligation to update any forward-looking statement, except as otherwise required by law.