2022-05-25 17:13:53 ENLC EnLink Midstream
Crestwood Equity
05/25/22 05/2517:13 05/25/2217:13 | EnLink Midstream to acquire North Texas assets from Crestwood EquityEnLink Midstream (ENLC) has entered into a definitive agreement to acquire North Texas gathering and processing assets from Crestwood Equity (CEQP) for $275M, subject to certain customary adjustments and regulatory approval. The assets to be acquired are expected to provide significant synergies, minimal integration capital, and significant capital avoidance for EnLink through planned redeployment of assets to EnLink's other segments, including the Permian segment in the near-term and the Carbon Solutions business in the future. As a result, the transaction represents approximately 4.0x EBITDA and an unlevered return in the high teens. EnLink expects that the cash flow generation from the assets, in addition to the 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. The assets to be acquired would expand EnLink's position in the prolific Barnett Shale producing basin with proximity to existing and planned liquefied natural gas export facilities along the Gulf Coast. These assets include 500 miles of gas gathering pipeline and three processing plants with 425 MMcf/d of capacity, available for future relocation. EnLink Midstream
Crestwood Equity
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