Crestwood Midstream To Buy Arrow Midstream For About $750 Mln - Quick Facts

(RTTNews) - Crestwood Midstream Partners LP(CMLP, KGS), Thursday said its unit, Crestwood Arrow Acquisition LLC, agreed to acquire a privately-held midstream company, Arrow Midstream Holdings, LLC, for about $750 million. The deal, which is expected to expand  Crestwood's operational footprint in the Bakken Shale, is scheduled to close in the fourth quarter of 2013.

The deal is expected to add to Crestwood's estimated distributable cash flow per limited partner unit in 2014, with growing accretion thereafter based upon projected production increases from the Arrow assets.

Crestwood said: "The Arrow system is currently undergoing an extensive expansion of its gas gathering capacity to capture current flared natural gas volumes. These enhancement projects, including line looping and system compression, are expected to be substantially complete in the fourth quarter of 2013. Thereafter, the systems will be primarily built-out with modest organic capital requirements of approximately $80 million over the next 18 to 24 months to reach targeted operational throughput capacities of 125,000 Bbls/d of crude oil, 100 MMcf/d of natural gas, and 40,000 Bbls/d of water."