![natural gas storage tanks](/sites/default/files/styles/hart_news_article_image_640/public/image/2023/05/crestwood-brookfield-complete-gas-storage-sale-enbridge.png?itok=AMZ05wnq)
Crestwood Equity Partners LP and Brookfield Infrastructure Partners have completed the sale of a natural gas storage facility to Enbridge Inc. for $335 million, Crestwood said in its May 2 earnings report. (Source: Shutterstock.com)
Crestwood Equity Partners LP and Brookfield Infrastructure Partners have completed the sale of a natural gas storage facility to Enbridge Inc. for $335 million, Crestwood said in its May 2 earnings report.
On March 1, Canada’s Enbridge said it would acquire the Tres Palacios gas storage facility in Matagorda County, Texas. The salt cavern natural gas storage facility has a working gas capacity of 35 billion cubic feet across three storage caverns.
Crestwood said the sale closed April 3 and received $178 million for its 50% interest in Tres Palacios Gas Storage LLC. The proceeds will be used to repay Crestwood borrowings.
Crestwood ended the first quarter with approximately $3.3 billion of total debt outstanding, including $474 million drawn on its $1.75 billion revolving credit facility. Its consolidated leverage ratio of 4.2x will drop to pro forma for the Tres Palacios sale.
“We successfully closed the divestiture of Tres Palacios and used the sale proceeds to pay down debt and accelerate our leverage reduction,” said Robert G. Phillips, founder, chairman and CEO of Crestwood. “Pro forma for the divestiture, Crestwood’s leverage ratio is now at 4.0x, with line of sight to further deleveraging throughout the year via EBITDA growth and free cash flow allocation to debt pay down.”
Enbridge said on May 1 it had entered into a definitive agreement to acquire two more storage facilities in Canada from FortisBC Holdings Inc. for CA$400 million (US$295 million).
Recommended Reading
Blankenship, Regens: More Demand, More M&A, More Regs
2024-05-23 - In 2024, the oil and gas industry is dealing with higher interest rates, armed conflicts in Europe and the Middle East, rising material costs, a decrease in Tier 1 acreage and new policies and laws.
Technip Energies Wins Marsa LNG Contract
2024-04-22 - Technip Energies contract, which will will cover the EPC of a natural gas liquefaction train for TotalEnergies, is valued between $532 million and $1.1 billion.
Ohio Utica’s Ascent Resources Credit Rep Rises on Production, Cash Flow
2024-04-23 - Ascent Resources received a positive outlook from Fitch Ratings as the company has grown into Ohio’s No. 1 gas and No. 2 Utica oil producer, according to state data.
Chevron, Total’s Anchor Up and (Almost) Running
2024-05-07 - During the Offshore Technology Conference 2024, project managers for Chevron’s Anchor Deepwater Project discussed the progress the project has made on its journey to reach first oil by mid-2024.
US Drillers Cut Oil, Gas Rigs for Fourth Week in a Row-Baker Hughes
2024-04-12 - The oil and gas rig count, an early indicator of future output, fell by three to 617 in the week to April 12, the lowest since November.