Crestwood, Inergy Complete Merger - Quick Facts

(RTTNews) - Crestwood Midstream Partners LP (CMLP) and Crestwood Holdings LLC and Inergy L.P. (NRGY) and Inergy Midstream, L.P. (NRGM) Monday announced that the merger of Crestwood and Inergy has been completed. The combination is a fully integrated midstream partnership platform with a total enterprise value of about $8 billion.

The merger of Crestwood Midstream with a subsidiary of Inergy Midstream closed today, completing the final step in the combination of Inergy and Crestwood.

The newly combined entity has been named Crestwood Midstream Partners LP and will trade under the ticker symbol CMLP on the New York Stock Exchange beginning on October 8.

Additionally, Inergy L.P. has been renamed Crestwood Equity Partners LP and will trade on the New York Stock Exchange under the ticker symbol CEQP beginning on October 8.

The new Crestwood provides broad-ranging midstream infrastructure solutions across the value chain through assets in every premier shale play in North America.

Going forward, Crestwood's core operations will be organized into two primary business units: the Natural Gas Unit and the Crude Oil and Liquids Unit.

Additionally, Crestwood has implemented an Operations Services business unit focused on standardizing best practices company-wide to better service customers and build economies of scale to drive down costs.

With the focus on "cross-selling" the full suite of services and on delivering cost savings through the Operations Services function, Crestwood estimates $15 to $20 million of annual run-rate cost synergies are achievable by the first half of 2014.

As outlined in prior announcements, Robert Phillips has been named Chairman, President and Chief Executive Officer of Crestwood Midstream and Crestwood Equity.

As previously announced, the combination of Inergy and Crestwood was effected through a series of transactions.

In the first transaction, Crestwood Holdings acquired the general partner of Inergy L.P. for $80 million in cash. Prior to the closing of this transaction, Inergy L.P. distributed to its unitholders all of the about 56.4 million common units that it owned in Inergy Midstream. Upon closing of this transaction, Crestwood Holdings owned the general partner, and thus control, of Inergy L.P.

In a second transaction, Crestwood Gas Services Holdings LLC, a wholly owned subsidiary of Crestwood Holdings, contributed to Inergy L.P. 100% of its interest in Crestwood Gas Services GP LLC, the general partner of Crestwood Midstream that also owns 100% of the incentive distribution rights of Crestwood Midstream, in exchange for approximately 35.1 million common units and about 4.4 million subordinated units of Inergy L.P.

Crestwood Holdings also has the option to contribute to Inergy L.P. about 7.1 million of the Inergy Midstream common units it receives in the merger described below in exchange for about 14.3 million common units of Inergy L.P., and has elected to exercise this option, which results in it owning approximately 29% of the total common units of Inergy, L.P. outstanding.

In the final transaction, which closed today, Crestwood Midstream merged with a subsidiary of Inergy Midstream. In the merger, Crestwood Midstream unitholders received 1.070 common units of Inergy Midstream for each unit of Crestwood Midstream they own.

Additionally, all Crestwood Midstream public unitholders other than Crestwood Holdings received a one-time cash payment at closing of $1.03 per common unit.