GE Energy Financial Funds Gas Gathering/Processing JV
Crestwood Midstream Partners announced that its subsidiary, Crestwood Niobrara, has entered into an agreement to acquire a 50% interest in Jackalope Gas Gathering Services from RKI Exploration & Production for approximately $108 million.
RKI is a privately-owned, independent exploration and production company focused in the Powder River, Permian and Denver-Julesberg Basins in which First Reserve owns a significant minority ownership position.
First Reserve is an energy-focused private equity firm that is also Crestwood’s indirect general partner and largest common unit holder.
In connection with the acquisition and expected future infrastructure development, GE Energy Financial Services has agreed to fund, subject to additional approvals, 75% of the acquisition and future capital contributions for Crestwood Niobrara’s 50% interest in Jackalope, up to $150 million in preferred equity.
The remaining contribution for Crestwood Niobrara’s interest will be funded with available borrowing capacity under Crestwood’s revolving credit facility. No additional capital markets activity will be required by Crestwood in connection with this acquisition.