2011-02-28-2011-02-22-2011-02-22

Acquired certain midstream assets in SE NM consisting of approximately 46 miles of gas-gathering pipelines in the Morrow/Atoka trend and the emerging Avalon shale trend.

Effective Feb. 1, Houston-based Crestwood Midstream Partners LP (NYSE: CMLP) has acquired certain midstream assets in southeastern New Mexico for $5.1 million from a group of independent producers.

The assets consist of approximately 46 miles of gas-gathering pipelines in the Morrow/Atoka trend and the emerging Avalon shale trend. The pipelines are supported by long-term, fixed-fee contracts, which include existing Morrow/Atoka production and dedications of approximately 90,000 acres.

"The partnership is pleased to acquire these assets in addition to the pending acquisition of the Fayetteville shale and Granite Wash assets from Frontier Gas Services LLC," commented Phillips. "This strategic transaction provides the partnership with fee-based gathering assets in a fourth gas resource basin that offers upside growth potential through producer development activities."

Crestwood previously announced plans to acquire certain midstream assets in the Fayetteville shale and the Granite Wash plays from Tulsa, Okla.-based Frontier Gas for approximately $338 million, with an additional $15 million to be paid to Frontier if certain operational objectives are met within six-months of the closing date.