Houston, TX (September 4, 2013) – Inergy Midstream, L.P. (NYSE:NRGM) (“Inergy Midstream”) and Enserco Midstream, LLC (“Enserco Midstream”) announced today that they have formed a joint venture to own and operate a crude oil rail terminal located in Douglas County, Wyoming (“Douglas Facility”). Inergy Midstream’s subsidiary, Inergy Crude Logistics, LLC, and Enserco Midstream’s subsidiary, Enserco Powder River Basin, LLC, each own an approximate 50% interest in Powder River Basin Industrial Complex, LLC (“PRBIC”), the owner of the Douglas Facility. The Douglas Facility was placed into manifest service in August 2013, and unit train service is expected to begin during the first quarter of 2014.
The Douglas Facility is located in Converse County, Wyoming, atop the emerging Niobrara Powder River Basin shale play. After commencement of unit train service, Inergy Midstream and Enserco Midstream expect to expand throughput capacity to approximately 20,000 barrels per day. The terminal’s throughput capacity is further expandable to up to 60,000 barrels per day as production volumes increase in the developing Niobrara Powder River Basin shale play. PRBIC has an anchor agreement with a major producer for handling of crude oil volumes at the Douglas Facility.
“We are pleased to partner with Enserco Midstream on this important development project,” said Robert G. Phillips, Chairman, President, and Chief Executive Officer of Inergy Midstream’s general partner. “Enserco Midstream provides deep energy industry knowledge, and together we look forward to providing first-class takeaway solutions for our producer customers in the Powder River Basin play.”
“This transaction further expands Inergy Midstream’s crude logistics operations into another high-quality, emerging shale play and is an example of the strategic value of the planned merger between Inergy Midstream and Crestwood Midstream Partners LP (NYSE:CMLP) (“Crestwood”). The crude logistics operations of PRBIC are complementary to Crestwood’s recently completed acquisition of a 50% interest in the Jackalope natural gas gathering system and enhance our position in the Powder River Basin play by providing additional services and handling multiple products across the midstream value chain and creates additional opportunities for growth.”
“Enserco Midstream is pleased to join forces with Inergy Midstream to own and operate the Douglas Facility,” said Griff Jones, President and CEO of Twin Eagle Resource Management, LLC, the parent company of Enserco Midstream. “The strength and reputation of our new partner will help provide us with additional momentum as we expand our geographic reach into the growing shale plays throughout the country.”
About Inergy Midstream, L.P.
Inergy Midstream, L.P. is a publicly traded master limited partnership that develops, owns, and operates predominantly fee-based natural gas, NGL and crude oil storage and transportation businesses. For more information about Inergy Midstream, L.P., visit www.inergylp.com.
About Inergy, L.P.
Inergy, L.P. is a publicly traded master limited partnership that controls, owns, and operates energy midstream businesses. Inergy’s operations include a natural gas storage business in Texas and an NGL and crude oil supply and logistics business that serves customers in the United States and Canada. Through its general partner interest in Inergy Midstream, L.P. and Crestwood Midstream Partners LP, Inergy is also engaged in the development and operation of natural gas, NGL and crude oil gathering, processing, storage, and transportation assets in multiple unconventional shale plays across the United States. For more information about Inergy, L.P., visit www.inergylp.com.
About Crestwood Midstream Partners LP
Houston, Texas-based Crestwood is a growth-oriented, midstream master limited partnership which owns and operates predominately fee-based gathering, processing, treating and compression assets servicing natural gas producers in the Barnett Shale in north Texas, the Marcellus Shale in northern West Virginia, the Fayetteville Shale in northwest Arkansas, the Granite Wash in the Texas Panhandle, the Avalon Shale/Bone Spring in southeastern New Mexico and the Haynesville/Bossier Shale in western Louisiana. For more information about Crestwood, visitwww.crestwoodlp.com. The general partner of Crestwood is owned by Inergy, L.P. (NYSE:NRGY).
About Enserco Midstream, LLC
Enserco Midstream, LLC is a privately held subsidiary of Twin Eagle Resource Management, LLC. Enserco Midstream owns and operates crude oil logistical assets in North Dakota, Montana and Wyoming and has plans to develop additional assets in these areas as well as other areas around North America.
About Twin Eagle Resource Management, LLC
Twin Eagle Resource Management, LLC is a leading energy commodity marketing company focused on customer relations, logistics and asset management. Twin Eagle has four primary divisions – natural gas, power, crude and coal – which work together to provide customers and counterparties solutions to their wholesale energy needs. Through a subsidiary, Enserco Midstream, LLC, Twin Eagle owns and operates crude oil logistical assets around North America and through its retail division, ENCOA, Twin Eagle provides retail electricity, natural gas, and energy solutions to end-use customers within deregulated markets.
This press release contains forward-looking statements, which are statements that are not historical in nature including statements concerning the expectation that the Douglas Facility will commence unit train service in 2014 and the availability of expansion possibilities. 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 crude oil demand; the general level of crude oil supplies, including supply volumes in the production region designed to be served by the Douglas Facility; 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’s annual reports 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.
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