Energy Transfer LP said Wednesday it would pay 2.07 common units for each unit of Crestwood Equity Partners LP in an all-equity deal valued at $7.1 billion, including the assumption of $3.3 billion of debt.
Based on Energy Transfer’s
ET,
Energy Transfer’s units rose 2% on Wednesday, while Crestwood’s rose 2.8%.
Energy Transfer said the deal includes the opportunity for Crestwood unit holders to participate in its targeted annual distribution-per-unit growth rate of 3% to 5%.
The deal is expected to close in the fourth quarter.
Crestwood Equity common unit holders will own about 6.5% of Energy Transfer’s common units.
Crestwood’s business includes gathering and processing infrastructure in the Williston, Delaware and Powder River basins in the central U.S. and south central Canada, including about 2 billion cubic feet per day of gas-gathering capacity, 1.4 billion cubic feet per day of processing capacity and 340,000 barrels per day of crude-gathering capacity.
Energy Transfer said the transaction is expected to immediately add to distributable cash flow per unit. It will also be neutral to Energy Transfer’s leverage metrics upon closing.
