Crestwood Midstream Partners LP has completed the acquisition of gathering and processing assets from subsidiaries of Devon Energy Corporation. The effective date of the acquisition was July 1, 2012. Total cash paid to Devon for the assets was $87.1 million, which reflects a $2.9 million reduction to the originally announced acquisition price for estimated closing adjustments and operating activity since July 1, 2012.
The acquired assets are located in the liquids-rich southwestern area of the Barnett Shale and include a 74 mile low pressure rich natural gas gathering system, a cryogenic processing facility with capacity of 100 million cubic feet per day and 23,100 horsepower of compression equipment. As a part of the transaction, Crestwood and Devon entered into a 20 year fixed-fee gathering, processing and compression agreement covering existing and future production from an approximate 20,500 acre dedication.