EnLink Midstream, LLC (NYSE:ENLC) entered into a definitive agreement to acquire North Texas gathering and processing assets of Crestwood Equity Partners LP (NYSE:CEQP) for approximately $280 million.
EnLink Midstream, LLC (NYSE:ENLC) entered into a definitive agreement to acquire North Texas gathering and processing assets of Crestwood Equity Partners LP (NYSE:CEQP) for approximately $280 million on May 25, 2022. Consideration is subject to certain customary adjustments and will be paid in cash. Transaction is subject to customary regulatory approval. The transaction has been unanimously approved by the Board of Directors of Crestwood. The transaction is expected to close early in the third quarter 2022. Proceeds from the transaction will be used in the acquisition of Sendero Midstream Partners, LP. The transaction represents attractive economics of approximately 4.0x EBITDA and an unlevered return in the high teens for EnLink. EnLink expects that the robust cash flow generation from the assets, in addition to the significant reduction to EnLink's 2023 capital expenditures driven by redeployment of assets, would result in significant 2023 cash flow accretion and a leverage neutral transaction.
RBC Capital Markets, LLC and Citigroup Inc. (NYSE:C) served as financial advisors and Vinson & Elkins LLP and Locke Lord LLP served as legal advisors to Crestwood. Baker Botts L.L.P. served as advisor to EnLink Midstream.