Crestwood plans to sell U.S. Salt

WATKINS GLEN--Crestwood Equity Partners announced Tuesday, Oct. 31 it is selling U.S. Salt in Watkins Glen. Crestwood entered into a purchase agreement to sell 100 percent of the equity interests of U.S. Salt, LLC ("U.S. Salt") to an affiliate of Kissner Group Holdings LP for $225 million. The transaction is subject to customary closing conditions, including approval under the Hart-Scott-Rodino Act, and is expected to close during the fourth quarter 2017.
However, Crestwood said they will maintain their right to store propane and natural gas in the properties' depleted salt caverns. The gas storage plan has met resistance from Finger Lakes' winemakers and others in the region.
Located in Watkins Glen, US Salt is a solution salt mine capable of producing over 400,000 tons of evaporated salt annually. U.S. Salt was purchased by a predecessor company in August 2008. U.S. Salt is a non-core business in Crestwood's Marketing, Supply and Logistics segment.
Houston, Texas, based Crestwood Equity Partners LP (NYSE: CEQP) is a master limited partnership that owns and operates midstream businesses in multiple unconventional shale resource plays across the United States. Crestwood Equity is engaged in the gathering, processing, treating, compression, storage and transportation of natural gas; storage, transportation, terminalling, and marketing of NGLs; and gathering, storage, terminalling and marketing of crude oil.