Energy Transfer Acquires Crestwood Equity Partners in $7.1 Billion All-Stock Transaction

Key takeaways

Energy Transfer is buying Crestwood Equity Partners for $7.1 billion in an all-stock deal.
Crestwood investors will receive 2.07 shares of Energy Transfer for every Crestwood share they own.
The deal will help Energy Transfer expand its presence in the Williston and Delaware Basins, and give it access to the Powder River Basin.

Oil and Energy Transfer LP (ET) has agreed to buy Crestwood Equity Partners LP (CEQP) for $7.1 billion, including $3.3 billion in debt.

The all-stock deal gives Crestwood investors 2.07 energy transfer shares for every Crestwood share they own. When the deal is finalized, Crestwood shareholders will own approximately 6.5% of Energy Transfer.

Crestwood stores and transports natural gas and crude oil, and the companies said the deal would expand Energy Transfer's reach into the Williston and Delaware Basins, and give it access to the Powder River Basin. They added that the merger should be immediately accretive to distributable cash flow per share.

Energy Transfer said it expects to achieve at least $40 million in annual cost synergies before any incremental benefits from financial and business opportunities.