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Released July 31, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Crestwood Equity Partners LP (NYSE:CEQP) (Houston, Texas) is continuing with strong expansion programs in the Bakken and Powder River Basin, increasing both its gathering and natural gas processing capacity. Industrial Info is tracking more than $1 billion in active Crestwood projects.
Among Crestwood's most significant achievements in second-quarter 2019 was the acquisition from Williams Companies Incorporated (NYSE:WMB) (Tulsa, Oklahoma) of the remaining 50% of the Jackalope gathering and processing system in the Powder River Basin for $485 million, substantially increasing the company's gathering volumes in the quarter. Crestwood expects the Jackalope, of which it now owns 100%, will generate cash flow of $100 million this year, rising to $150 million in 2021.
In addition to acquisitions, Crestwood is underway with capital projects to expand natural gas gathering and processing. In the company's earnings conference call, Chief Executive Officer Bob Phillips spoke about the company's projects. Among these is the addition of a train at the company's Bucking Horse natural gas processing plant in Wyoming, which it acquired from Williams. The 200 million-cubic-foot-per-day train will bring the plant's total processing capacity to 345 million cubic feet per day. Full construction is set to begin soon, and Phillips said the project was on track for an early in-service date of first-quarter 2020. The project has an estimated total investment value (TIV) of $100 million. For more information, see Industrial Info's project report.
To handle the increased production in the region, Crestwood is constructing a couple of compressor stations in Wyoming. Construction on the Big Horn and Graywolf compressor stations began this summer. The stations are expected to be completed late this year and in early 2020. SNC-Lavalin Group Incorporated (TSX:SNC) (Montreal, Quebec) is providing engineering, procurement and construction on Bighorn. For more information, see Industrial Info's project reports on Graywolf and Bighorn.
Crestwood also is progressing with expansion projects in the Bakken, where the company has its Arrow system. Phillips said Crestwood had connected 36 wells to the system in the first half of 2019 and expected to connect approximately 60 wells in the second half of the year. "On the Arrow system, we continue to expand our three-phase gathering system, and I'm very pleased to announce we're on track for an early September in-service date for the Bear Den II processing plant expansion," said Phillips. The Bear Den II plant will add 170 million cubic feet per day of processing capacity, bringing total plant capacity to 200 million cubic feet per day. Construction on the $175 million project began in the summer of 2018. For more information, see Industrial Info's project report.
While Crestwood's primary focus currently is on the Bakken and Powder River Basin, the company could be expanding its footprint elsewhere. Crestwood could begin adding natural gas processing trains to its plant in Orla, Texas, next year. Trains 2 and 3 would each add 200 million cubic feet per day of processing, bringing total plant capacity to 600 million cubic feet per day. Saulsbury Industries (Odessa, Texas) is performing design engineering on the projects, which could be completed by the end of the year. The projects have a combined TIV of $250 million. For more information, see Industrial Info's project reports on Train 2 and Train 3.
In New York, Crestwood is in the late planning stage for the construction of an underground liquefied petroleum gas (LPG) storage facility near Watkins Glen. The project entails converting an underground salt cavern next to a salt refinery to store LPG and would include a brine pond and flare stack. The facility would store an estimated 1.5 million barrels. Construction would begin later this year, for completion in early 2020. For more information, see Industrial Info's project report.
Crestwood reported second-quarter 2019 net income of $225 million, compared with a net loss of $21.5 million in second-quarter 2018.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, eight offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Among Crestwood's most significant achievements in second-quarter 2019 was the acquisition from Williams Companies Incorporated (NYSE:WMB) (Tulsa, Oklahoma) of the remaining 50% of the Jackalope gathering and processing system in the Powder River Basin for $485 million, substantially increasing the company's gathering volumes in the quarter. Crestwood expects the Jackalope, of which it now owns 100%, will generate cash flow of $100 million this year, rising to $150 million in 2021.
In addition to acquisitions, Crestwood is underway with capital projects to expand natural gas gathering and processing. In the company's earnings conference call, Chief Executive Officer Bob Phillips spoke about the company's projects. Among these is the addition of a train at the company's Bucking Horse natural gas processing plant in Wyoming, which it acquired from Williams. The 200 million-cubic-foot-per-day train will bring the plant's total processing capacity to 345 million cubic feet per day. Full construction is set to begin soon, and Phillips said the project was on track for an early in-service date of first-quarter 2020. The project has an estimated total investment value (TIV) of $100 million. For more information, see Industrial Info's project report.
To handle the increased production in the region, Crestwood is constructing a couple of compressor stations in Wyoming. Construction on the Big Horn and Graywolf compressor stations began this summer. The stations are expected to be completed late this year and in early 2020. SNC-Lavalin Group Incorporated (TSX:SNC) (Montreal, Quebec) is providing engineering, procurement and construction on Bighorn. For more information, see Industrial Info's project reports on Graywolf and Bighorn.
Crestwood also is progressing with expansion projects in the Bakken, where the company has its Arrow system. Phillips said Crestwood had connected 36 wells to the system in the first half of 2019 and expected to connect approximately 60 wells in the second half of the year. "On the Arrow system, we continue to expand our three-phase gathering system, and I'm very pleased to announce we're on track for an early September in-service date for the Bear Den II processing plant expansion," said Phillips. The Bear Den II plant will add 170 million cubic feet per day of processing capacity, bringing total plant capacity to 200 million cubic feet per day. Construction on the $175 million project began in the summer of 2018. For more information, see Industrial Info's project report.
While Crestwood's primary focus currently is on the Bakken and Powder River Basin, the company could be expanding its footprint elsewhere. Crestwood could begin adding natural gas processing trains to its plant in Orla, Texas, next year. Trains 2 and 3 would each add 200 million cubic feet per day of processing, bringing total plant capacity to 600 million cubic feet per day. Saulsbury Industries (Odessa, Texas) is performing design engineering on the projects, which could be completed by the end of the year. The projects have a combined TIV of $250 million. For more information, see Industrial Info's project reports on Train 2 and Train 3.
In New York, Crestwood is in the late planning stage for the construction of an underground liquefied petroleum gas (LPG) storage facility near Watkins Glen. The project entails converting an underground salt cavern next to a salt refinery to store LPG and would include a brine pond and flare stack. The facility would store an estimated 1.5 million barrels. Construction would begin later this year, for completion in early 2020. For more information, see Industrial Info's project report.
Crestwood reported second-quarter 2019 net income of $225 million, compared with a net loss of $21.5 million in second-quarter 2018.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, eight offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
