Inergy, L.P. (NYSE:NRGY) (“NRGY”) today reported results of operations for the quarter and six-months ended June 30, 2013. As previously announced, on May 6, 2013, Crestwood Holdings LLC (“Crestwood Holdings”) and Crestwood Midstream Partners, LP (NYSE:CMLP) (“CMLP”) (collectively, “Crestwood”) and NRGY and Inergy Midstream, L.P. (NYSE:NRGM) (“NRGM”) (collectively, “Inergy”) entered into definitive agreements to create a fully integrated midstream partnership with a total enterprise value of approximately $7 billion. On June 19, 2013, Crestwood and Inergy closed the first step of the combination with Crestwood Holdings acquiring NRGY’s general partner, and thus control of the combined partnership. Consequently, operating results for the quarter and six-months ended June 30, 2013, include the consolidated results of Crestwood Gas Services GP LLC (“Crestwood GP”) and CMLP for the full periods, as well as the contribution from legacy NRGY and NRGM for the 12 days subsequent to the acquisition on June 19, 2013.
Quarter Ended June 30, 2013 Highlights
- Reported adjusted earnings before interest, taxes, depreciation, amortization and accretion (“Adjusted EBITDA”) of $47.8 million;
- Declared a quarterly cash distribution of $0.13 per limited partner unit to NRGY unitholders, payable on August 14, 2013;
- Completed the pro rata distribution of 56.4 million common units of NRGM to unitholders of NRGY on a basis of 0.432052 NRGM common unit for each NRGY common unit owned on June 14, 2013;
- Issued 35.1 million common units and 4.4 million subordinated units to Crestwood Holdings in exchange for ownership of Crestwood GP (and 100% of the incentive distribution rights in CMLP) on June 19, 2013; and
- Remained on schedule to complete the merger of CMLP into NRGM in late-third quarter or early-fourth quarter 2013.
Results reflect the activity of Crestwood GP (including the consolidation of CMLP’s business) for full periods presented, and the activity of legacy NRGY and NRGM only for the 12 days from June 19, 2013 to June 30, 2013. This presentation is required under U.S. Generally Accepted Accounting Principles (“GAAP”). Additionally, Inergy’s fiscal year has been changed to December 31.
“We are pleased with the significant progress we have made to complete the transformational merger between CMLP and NRGM,” said Robert G. Phillips, Chairman, President and Chief Executive Officer of NRGY’s general partner. “The combined partnership will have a diverse platform of midstream assets in virtually every premier shale play in the United States and will provide a full suite of services expanding across the midstream value chain.