EnLink Midstream, LLC announced that it has entered into a definitive agreement to acquire North Texas gathering and processing assets from Crestwood Equity Partners LP for $275 million, subject to certain customary adjustments and regulatory approval. The adjacency of the assets to EnLink's North Texas footprint provides significant synergies and the opportunity to redeploy assets to EnLink's other areas of operation, resulting in significant capital avoidance and driving attractive transaction economics.
"We are very pleased to announce the agreement to acquire this gathering and processing system in North Texas, which is composed of assets that are highly complementary to EnLink's, both in North Texas and in our other areas of operation," EnLink Chairman and CEO Barry E. Davis said. "This transaction is consistent with our strategy to execute tuck-in acquisitions adjacent to our existing footprints through which we can generate significant synergies and integrate seamlessly without incremental resources. In addition, EnLink has a proven strategy of redeploying underutilized assets to areas of high growth, thus reducing capital expenditures and achieving significantly better economics than through new build projects, and, when completed, we expect this acquisition to bring a robust set of opportunities for our team to do just that. The resulting capital avoidance, coupled with the assets' robust cash flow profile, is expected to result in a leverage neutral transaction, preserving our balanced capital allocation plan, including the return of capital to common unitholders, and our ability to execute EnLink's other growth strategies, such as building our Carbon Solutions business."