Crestwood Equity Partners LP (NYSE: CEQP) said Oct. 31 it will sell its noncore salt business with proceeds earmarked for its Bakken Shale and Delaware Basin projects.

The Houston-based company entered an agreement to sell 100% of the equity interests of US Salt LLC to an affiliate of Kissner Group Holdings LP for $225 million. Proceeds will be used to pay down Crestwood's debt and reinvest in on-going accretive organic growth projects in the Bakken and Delaware Basin, according to the company press release.

The deal also positions Crestwood to execute 2017 and 2018 capital expansion programs without accessing the equity capital markets, the company said.

Located in Watkins Glen, N.Y., US Salt is a solution salt mine capable of producing over 400,000 tons of evaporated salt annually. US Salt, which was purchased by a predecessor company in August 2008, is a noncore business in Crestwood’s Marketing, Supply and Logistics segment.

The divestiture is expected to be roughly 3% to 5% accretive to distributable cash flow per unit by fiscal-year 2019, according to the release.

Crestwood said it expects to close the transaction during fourth-quarter 2017, subject to customary closing conditions, including approval under the Hart-Scott-Rodino Act.