EnLink Midstream, LLC (NYSE:ENLC) entered into a definitive agreement to acquire North Texas gathering and processing assets of Crestwood Equity Partners LP (NYSE:CEQP) for approximately $280 million on May 25, 2022. The use of proceeds will be used to reduce borrowings of $1.5 billion credit facility. Consideration is subject to certain customary adjustments and will be paid in cash. Transaction is subject to customary regulatory approval. The transaction has been unanimously approved by the Board of Directors of Crestwood. The transaction is expected to close early in the third quarter 2022. Proceeds from the transaction will be used in the acquisition of Sendero Midstream Partners, LP. The transaction represents attractive economics of approximately 4.0x EBITDA and an unlevered return in the high teens for EnLink. EnLink expects that the robust cash flow generation from the assets, in addition to the significant reduction to EnLink's 2023 capital expenditures driven by redeployment of assets, would result in significant 2023 cash flow accretion and a leverage neutral transaction.

RBC Capital Markets, LLC and Citigroup Inc. (NYSE:C) served as financial advisors and Gillian Hobson, Daniel McEntee, Ryan Carney, Jason McIntosh, Sean Becker, Shane Tucker, Hill Wellford, Matt Dobbins, Scot Dixon, Sarah Mitchell, Darin Schultz, Caitlin Lawrence and Rajesh Patel of Vinson & Elkins LLP and Locke Lord LLP served as legal advisors to Crestwood. Preston Bernhisel, Scott Janoe, Steve Marcus, Thomas Fina of Baker Botts L.L.P. served as legal advisor to EnLink Midstream. Yvette Ostolaza, Eric Winwood of Sidley Austin LLP acted as legal advisor to EnLink Midstream.

EnLink Midstream, LLC (NYSE:ENLC) completed the acquisition of North Texas gathering and processing assets of Crestwood Equity Partners LP (NYSE:CEQP) on July 1, 2022.