[Update – The deal closed on February 1, 2022]
Crestwood Equity Partners has agreed to buy fellow Houston company, Oasis Midstream Partners, for $1.8 billion. $160 million will be paid in cash, the rest in stock. Oasis will own about 22% of Crestwood after the deal goes through.
Oasis Midstream was spun out of Oasis Petroleum in September 2017. Its assets are primarily midstream assets in the Williston Basin in North Dakota. There are also a few assets in the Delaware Basin. In 2020, it had revenues of $347 million. Of that, 97% were generated by Oasis Petroleum.
Oasis Petroleum has a 67.5% limited partner interest in Oasis Midstream. The parent entered a pre-packaged bankruptcy in late 2020. After exit, its founder and CEO retired, and it sold its Permian Basin assets for $481 million to become a pure-play Bakken E&P operator.
Crestwood already has 796 miles of pipeline in the Bakken and 311 miles in the Delaware Basin, plus related infrastructure. It also has assets in the Marcellus, Barnett and Powder River Basins.
Crestwood expects to generate $25 million in cost savings from operations and general and administrative expenses.
The deal is expected to close in the first quarter of 2022.