Energy Transfer Inks $7.1B Deal To Acquire Crestwood Equity Partners
Portfolio Pulse from Lekha Gupta
Energy Transfer LP (ET) has agreed to acquire Crestwood Equity Partners LP (CEQP) in an all-equity deal worth around $7.1 billion, including the assumption of $3.3 billion of debt. The deal is expected to close in Q4 2023. Crestwood shareholders will receive 2.07 ET common units for each share held. Post-deal, Crestwood unitholders are expected to own around 6.5% of ET’s outstanding shares. The acquisition is expected to boost ET's NGL & Refined Products and Crude Oil businesses.
August 16, 2023 | 2:36 pm
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Crestwood Equity Partners is being acquired by Energy Transfer in an all-equity deal. Crestwood shareholders will receive 2.07 ET common units for each share held.
The acquisition deal is expected to be beneficial for Crestwood shareholders as they will receive 2.07 ET common units for each share held. This could potentially increase the value of their holdings, which could positively impact the stock price of Crestwood.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Energy Transfer's acquisition of Crestwood Equity Partners is expected to boost its NGL & Refined Products and Crude Oil businesses. The deal is immediately accretive to ET's distributable cash flow per unit with neutral impact on leverage metrics.
The acquisition is expected to be beneficial for Energy Transfer as it will provide an entry into the Powder River basin and boost its NGL & Refined Products and Crude Oil businesses. This could potentially increase the company's revenues and profitability, which could positively impact its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100