Crestwood, Con Edison To Divest Stagecoach Gas Services To Kinder Morgan For $1.23 Bln - Quick Facts

(RTTNews) - Crestwood Equity Partners LP (CEQP) and Consolidated Edison, Inc. (ED) announced Tuesday that their subsidiaries entered into a purchase and sale agreement to divest Stagecoach Gas Services LLC to a subsidiary of Kinder Morgan, Inc. (KMI) for $1.225 billion.

The cash proceeds from the divestiture will be split pro rata between Crestwood and Con Edison in line with each member's 50% ownership interest in the joint venture.

The agreement, signed on Monday, is subject to two closing periods. The first closing consists of the transfer of the Stagecoach subsidiaries (with the exception of Twin Tier Pipeline LLC) valued at $1.195 billion. This is expected to occur, following approval under Hart-Scott-Rodino, during the third quarter of 2021.

Crestwood intends to use net proceeds to repay outstanding borrowings under its revolving credit facility and opportunistically utilize free cash flow after distributions for its board approved common and preferred equity buy-back program.

Stagecoach is comprised of premier natural gas pipeline and storage facilities that provide a critical link between robust natural gas supply sources and Northeast US demand markets.