Crestwood Midstream Partners Completes Acquisition of Haynesville/Bossier Shale Midstream Assets

Crestwood Midstream Partners LP (NYSE:CMLP) (“Crestwood”) announced today it has completed the previously announced acquisition of Tristate Sabine, LLC (“Tristate”) from affiliates of Energy Spectrum Capital, Zwolle Pipeline, LLC and the Tristate management.  Crestwood paid $65 million at closing which was funded with available capacity under Crestwood’s revolving credit facility.  An additional $8 million deferred purchase payment will be paid on November 1, 2012, subject to customary post-closing adjustments.

The acquired assets include approximately 61 miles of high pressure natural gas gathering pipelines and carbon dioxide treating facilities located in Sabine Parish, Louisiana (the “Sabine System”).  The Sabine System provides gathering and treating services for Haynesville and Middle Bossier Shale production from the Toledo Bend South field area for re-delivery to Gulf South Pipeline and Tennessee Gas Pipeline.  Crestwood is also acquiring gathering and treating contracts on the Sabine system which dedicate approximately 20,000 acres under long-term, fixed fee arrangements.  System capacity is currently being expanded to 100 million cubic feet per day (“MMcf/d”) for gathering and 80 MMcf/d for treating.  The expansion is expected to be completed during the fourth quarter of 2011, with the final remaining cost to be largely funded from working capital acquired with the acquisition.  Following the expansion, gathering volumes are expected to be approximately 60 to 70 MMcf/d.

“We are pleased to complete this acquisition which expands Crestwood into another large scale, world class shale play,” state Robert G. Phillips, President and Chief Executive Officer of Crestwood’s general Partner.  “The Sabine System covers a highly productive core area of the Haynesville/Bossier shale play and provides producers with access to premium priced markets on the Gulf South and Tennessee Gas systems.  The acreage dedicated to the Sabine System has produced some classic Haynesville/ Bossier wells with large expected ultimate recoveries and high initial production rates over the past two years.”

SOURCE:  Taken from News Release issued by Crestwood Midstream Partners, L.P. on November 1, 2011.  Complete news release can be found on Crestwood Midstream website at www.crestwoodlp.com.