Establishes New Midstream Platform in the Prolific Bakken Shale
KANSAS CITY, Mo.--(BUSINESS WIRE)--Dec. 7, 2012--
Inergy Midstream, L.P. (NYSE:NRGM) (“Inergy Midstream”) and the owner of
its general partner, Inergy, L.P. (NYSE:NRGY) (“Inergy”), announced
today that Inergy Midstream has completed the previously announced
acquisition of Rangeland Energy, LLC (“Rangeland”), the owner and
operator of the COLT crude oil rail terminal, storage, and pipeline
facilities (the “COLT Hub”) for approximately $425 million, subject to
certain performance milestones and customary working capital
adjustments. The COLT Hub acquisition is an expansion of Inergy
Midstream’s shale-focused infrastructure portfolio and a natural
extension of Inergy’s refinery and producer-services businesses.
Additionally, the COLT Hub has a first-mover advantage in the Bakken and
could lead to incremental crude oil and NGL investments.
Inergy Midstream also announced today that it has completed the
long-term debt and equity financing associated with the COLT Hub
acquisition with the private placement of $225 million of Inergy
Midstream common units and $500 million in senior unsecured notes due
2020. The remaining net proceeds from these offerings were used to repay
borrowings under the Inergy Midstream revolving credit facility.
About Inergy Midstream, L.P.
Inergy Midstream, L.P., headquartered in Kansas City, Missouri, is a
master limited partnership primarily engaged in the development and
operation of natural gas and NGL storage and transportation assets.
Inergy Midstream’s assets are located in the Northeast region of the
About Inergy, L.P.
Inergy, L.P., headquartered in Kansas City, Missouri, is a publicly
traded master limited partnership. Inergy’s operations include a natural
gas storage business in Texas and an NGL supply logistics and marketing
business that serves customers in the United States and Canada. Through
its general partner interest and majority equity ownership interest in
Inergy Midstream, L.P., Inergy is also engaged in the development and
operation of natural gas and NGL storage and transportation business in
the Northeast region of the United States.
This press release contains forward-looking statements, which are
statements that are not historical in nature including the expectation
that the COLT Hub could lead to incremental investments. Forward-looking
statements are subject to certain risks, uncertainties, and assumptions.
Should one or more of these risks or uncertainties materialize or any
underlying assumption proves incorrect, actual results may vary
materially from those anticipated, estimated, or projected. Among the
key factors that could cause actual results to differ materially from
those referred to in the forward-looking statements are: weather
conditions that vary significantly from historically normal conditions;
the general level of petroleum product demand and the availability of
supply; the demand for high deliverability natural gas storage capacity
in the Northeast; our ability to successfully implement our business
plan; the outcome of rate decisions levied by the Federal Energy
Regulatory Commission; our ability to generate available cash for
distribution to unitholders; and the costs and effects of legal,
regulatory, and administrative proceedings against us or which may be
brought against us. These and other risks and assumptions are described
in Inergy Midstream’s annual report on Form 10-K and other reports that
are available from the United States Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on forward-looking
statements, which reflect management’s view only as of the date made. We
undertake no obligation to update any forward-looking statement, except
as otherwise required by law.
Corporate news, unit prices, and additional information about Inergy and
Inergy Midstream, including reports from the United States Securities
and Exchange Commission, are available on the company’s website, www.inergylp.com.
For more information, contact Vince Grisell in Inergy’s Investor
Relations Department at 816-842-8181 or via e-mail at email@example.com.
Source: Inergy Midstream, L.P.
Inergy Midstream, L.P.
Vince Grisell, 816-842-8181