Crestwood Equity Partners LP and Brookfield Infrastructure Partners have completed the sale of a natural gas storage facility to Enbridge Inc. for $335 million, Crestwood said in its May 2 earnings report.
On March 1, Canada’s Enbridge said it would acquire the Tres Palacios gas storage facility in Matagorda County, Texas. The salt cavern natural gas storage facility has a working gas capacity of 35 billion cubic feet across three storage caverns.
Crestwood said the sale closed April 3 and received $178 million for its 50% interest in Tres Palacios Gas Storage LLC. The proceeds will be used to repay Crestwood borrowings.
Crestwood ended the first quarter with approximately $3.3 billion of total debt outstanding, including $474 million drawn on its $1.75 billion revolving credit facility. Its consolidated leverage ratio of 4.2x will drop to pro forma for the Tres Palacios sale.
“We successfully closed the divestiture of Tres Palacios and used the sale proceeds to pay down debt and accelerate our leverage reduction,” said Robert G. Phillips, founder, chairman and CEO of Crestwood. “Pro forma for the divestiture, Crestwood’s leverage ratio is now at 4.0x, with line of sight to further deleveraging throughout the year via EBITDA growth and free cash flow allocation to debt pay down.”
Enbridge said on May 1 it had entered into a definitive agreement to acquire two more storage facilities in Canada from FortisBC Holdings Inc. for CA$400 million (US$295 million).
Recommended Reading
Iraq to Seek Bids for Oil, Gas Contracts April 27
2024-04-18 - Iraq will auction 30 new oil and gas projects in two licensing rounds distributed across the country.
Exxon Versus Chevron: The Fight for Hess’ 30% Guyana Interest
2024-03-04 - Chevron's plan to buy Hess Corp. and assume a 30% foothold in Guyana has been complicated by Exxon Mobil and CNOOC's claims that they have the right of first refusal for the interest.
Petrobras to Step Up Exploration with $7.5B in Capex, CEO Says
2024-03-26 - Petrobras CEO Jean Paul Prates said the company is considering exploration opportunities from the Equatorial margin of South America to West Africa.
The OGInterview: How do Woodside's Growth Projects Fit into its Portfolio?
2024-04-01 - Woodside Energy CEO Meg O'Neill discusses the company's current growth projects across the globe and the impact they will have on the company's future with Hart Energy's Pietro Pitts.
Deepwater Roundup 2024: Offshore Australasia, Surrounding Areas
2024-04-09 - Projects in Australia and Asia are progressing in part two of Hart Energy's 2024 Deepwater Roundup. Deepwater projects in Vietnam and Australia look to yield high reserves, while a project offshore Malaysia looks to will be developed by an solar panel powered FPSO.