Fuel Oil News October 2023 | Page 6

Crestwood opened a rail terminal in Montgomery , N . Y ., in 2017 . Fuel Oil News file photo .

NEWS

• Energy Transfer to Acquire Crestwood Equity Partners

• American Lease Acquires Sperr ’ s Fuel & Heating

• Eastern Propane Gas Acquires Blue Flame Gas

• Star Group Acquires Ideal Bottle Gas

Business Operations – pg 12

• IRS Sets Tax Credit for Home Energy Audits

• General Filters Launches Evaporative Humidifier

� ENERGY TRANSFER TO ACQUIRE CRESTWOOD

Energy Transfer announced that it will acquire Crestwood Equity Partners in an all-equity transaction valued at approximately $ 7.1 billion , including the assumption of $ 3.3 billion of debt , based on the closing price on August 15 , 2023 .

Crestwood Services , the supply and logistics unit of Crestwood Equity Partners , opened a rail terminal in Montgomery , N . Y ., in 2017 , providing propane to marketers across New York , New England , and other parts of the Northeast . ( See Fuel Oil News ’ October 2017 digital edition , archived at www . fueloilnews . com .)

Under the terms of the agreement , Crestwood common unitholders will receive 2.07 Energy Transfer common units for each Crestwood common unit . The transaction is expected to close in the fourth quarter of 2023 , subject to the approval of Crestwood ’ s unitholders , regulatory approvals , and other closing conditions . Upon closing , Crestwood common unitholders are expected to own approximately 6.5 % of Energy Transfer ’ s outstanding common units .

Crestwood ’ s system includes gathering and processing assets located in the Williston , Delaware and Powder River basins , including approximately 2.0 billion cubic feet per day of gas gathering capacity , 1.4 billion cubic feet per day of gas processing capacity and 340 thousand barrels per day of crude gathering capacity . If consummated , the transaction would extend Energy Transfer ’ s position in the value chain deeper into the Williston and Delaware basins while also providing entry into the Powder River basin . These assets are expected to complement Energy Transfer ’ s downstream fractionation capacity at Mont Belvieu , as well as its hydrocarbon export capabilities from both its Nederland Terminal in Texas and the Marcus Hook Terminal in Philadelphia , Pennsylvania .

The transaction is also expected to provide benefits to Energy Transfer ’ s NGL & Refined Products and Crude Oil businesses with the addition of strategically located storage and terminal assets , including approximately 10 million barrels of storage capacity , as well as trucking and rail terminals .

The transaction is expected to be immediately accretive to distributable cash flow per unit as well as neutral to Energy Transfer ’ s leverage metrics upon closing .

Energy Transfer also expects to achieve at least $ 40 million of annual run-rate cost synergies before additional benefits of financial and commercial opportunities .

Energy Transfer said its business model , strong balance sheet and backlog of growth opportunities supports the potential for significant additional value creation over time . The tax-efficient transaction is expected to provide Crestwood unitholders a benefit to distributions per unit and an opportunity to participate in Energy Transfer ’ s targeted annual distribution per

OCTOBER 2023

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PPA & Women in Energy 2 nd Annual Golf Tournament Oct . 9 Out Door Country Club York , PA Website : www . energygolfouting . com

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unit growth rate of 3-5 %.

Energy Transfer LP owns and operates diversified portfolios of energy assets in the United States , with nearly 125,000 miles of pipeline and associated energy infrastructure . Energy Transfer ’ s network spans 41 states with assets in all of the major U . S . production basins . Energy Transfer is a publicly traded limited partnership with core operations that include complementary natural gas midstream , intrastate and interstate transportation and storage assets ; crude oil , natural gas liquids and refined product transportation and terminalling assets ; and NGL fractionation . Energy Transfer also owns Lake Charles LNG Company , as well as the general partner interests , the incentive distribution rights and approximately 34 % of the outstanding common units of Sunoco LP , and the general partner interests and approximately 47 % of the outstanding common units of USA Compression Partners , LP . For more information , visit www . energytransfer . com .

Houston , Texas , based Crestwood Equity Partners LP is a master limited partnership that owns and operates midstream businesses in multiple shale resource

6 OCTOBER 2023 | FUEL OIL NEWS | www . fueloilnews . com