ECP Announces Sale of Sendero Midstream to Crestwood Midstream Partners
Jun 03, 2022
ECP has entered into a definitive agreement to sell Sendero Midstream Partners, LP ("Sendero") to Crestwood Midstream Partners LP, an affiliate of Crestwood Equity Partners LP (NYSE: CEQP) (collectively, "Crestwood") for an enterprise value cash purchase price of $600 million, plus/minus adjustments for working capital.
Sendero is a premier gas gathering and processing business located in Eddy County, New Mexico, one of the most actively developed counties in the Permian Basin. Through ECP's ownership, Sendero has developed 350 MMcf/d of gas processing capacity and 140 miles of natural gas pipelines.
"I would like thank the entire Sendero team for their unwavering commitment to developing a first-class gathering and processing system in the Permian Basin and for repositioning the business for growth and success coming out of the 2020 downturn," said Pete Labbat, Managing Partner at ECP. "We are excited for Sendero to partner with Crestwood, a premier midstream operator, and are confident that the company will benefit from Crestwood's strong track record."
"We are proud of our partnership with ECP, one of the leaders in the energy infrastructure space, and appreciate the team's engagement and support in growing the business into what it is today," said Joe Griffin, Chief Executive Officer of Sendero. "I would like to thank all of our incredibly hard-working Sendero employees and I am grateful to have worked with such a special group."
The transaction, which is subject to clearance under the Hart-Scott-Rodino Act and other customary closing conditions, is expected to close in July 2022.
About Sendero Midstream
Sendero Midstream is a private energy company that provides full-service, innovative midstream solutions throughout the Northern Delaware Basin. Sendero currently operates two cryogenic processing plants with a combined capacity of 350 MMcf/d and associated gathering and compression facilities in the Northern Delaware Basin in Eddy County, New Mexico.
ECP, founded in 2005, is a leading investor across energy transition, electrification and decarbonization infrastructure assets, including power generation, renewables and storage solutions, environmental infrastructure and efficiency & reliability assets facilitating the energy transition. The ECP team, comprised of 61 people with 500 years of collective industry experience, deep expertise and extensive relationships, has consummated more than 60 transactions over the last 10 years, representing more than $45 billion of enterprise value. For more information, visit www.ecpgp.com.
Jonathan Keehner / Woomi Yun / Kara Brickman
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