Unitholders of Houston-based midstream master limited partnership (MLP) Crestwood Midstream and Crestwood Holdings voted in favour of merging with Inergy Midstream, the two companies said in a joint statement.
The new combined entity will be named Crestwood Midstream Partners LP and will have a total enterprise value of approximately $8 billion according to the statement. Inergy LP will be renamed Crestwood Equity Partners LP. The two entities will begin trading under their new names on the New York Stock Exchange today.
The approval, granted during a special meeting held last Thursday, was the third and final element of the merger process.
“Our unitholders clearly recognise the significant value-enhancement opportunities that stem from the creation of a fully-integrated midstream MLP,” said Robert G. Phillips, chairman, president and chief executive of Crestwood and Inergy, referring to the near-unanimous approval of the merger.
“We look forward to completing this merger and executing on our strategy to grow the partnership and increase distributable cash flow for our unitholders,” he added.
Crestwood Midstream Partners LP is a growth-oriented, midstream master limited partnership which owns and operates predominantly fee-based gathering, processing, treating and compression assets servicing natural gas producers throughout the US.
Inergy LP, headquartered in Kansas City, Missouri, is a publicly-traded master limited partnership that controls, owns, and operates energy midstream businesses. Its operations include a natural gas storage business in Texas and a natural gas liquids (NGL) and crude oil supply and logistics business that serves customers in the US and Canada.
Inergy Midstream LP is a publicly traded master limited partnership that develops, owns, and operates predominantly fee-based natural gas, NGL and crude oil storage and transportation businesses.