The company will pay $65m at closing of the acquisition, which is expected on 1 November 2011, and a deferred payment of about $8m one year following the closing date, subject to customary post-closing adjustments.
Crestwood will acquire entities that own and operate about 52 miles of high-pressure natural gas gathering pipelines located in Sabine Parish in the US state of Louisiana (the Tristate System).
The Tristate System provides gathering and treating services for Haynesville and Bossier Shale production from the Toledo Bend South field area for redelivery to Gulf South Pipeline and Tennessee Gas Pipeline.
The capacity of the system is currently being expanded to 100 million cubic feet per day (mmcf/d) for gathering and 80mmcf/d for treating.
