Subsequent Events

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Sendero Acquisition. On July 11, 2022, we acquired Sendero Midstream Partners, LP (Sendero), a privately-held midstream company, for approximately $600 million (Sendero Acquisition). Sendero’s assets are located in Eddy County, New Mexico and are comprised of 350 million cubic feet per day (MMcf/d) of processing capacity, approximately 140 miles of natural gas gathering lines and more than 53,000 horsepower of field gathering compression. We will account for the Sendero Acquisition as a business combination using the acquisition method of accounting. We are completing our analysis of the purchase price consideration and estimating the fair value of the assets acquired and liabilities assumed in connection with the Sendero Acquisition, which is primarily comprised of property, plant and equipment, intangible assets, and goodwill, however, due to the timing of the acquisition, we are unable to provide amounts recognized as of the acquisition date for these major classes of assets and liabilities acquired. During the three and six months ended June 30, 2022, we recognized approximately $0.9 million of transaction costs related to the Sendero Acquisition, which are included in general and administrative expenses in our consolidated statements of operations.

Crestwood Permian Acquisition. On July 11, 2022 we acquired First Reserve Management, L.P.’s (First Reserve) 50% equity interest in Crestwood Permian in exchange for approximately 11.3 million newly issued CEQP common units (Crestwood Permian Acquisition). The acquisition of this equity interest results in us owning 100% of the equity interests in Crestwood

Permian and we anticipate that we will consolidate Crestwood Permian beginning in July 2022. We will account for the Crestwood Permian Acquisition as a business combination using the acquisition method of accounting. We are completing our analysis of the purchase price consideration and estimating the fair value of the assets acquired and liabilities assumed in connection with the Crestwood Permian Acquisition, which is primarily comprised of property, plant and equipment, intangible assets, goodwill, an equity method investment and long-term debt, however, due to the timing of the acquisition, we are unable to provide amounts recognized as of the acquisition date for these major classes of assets and liabilities acquired. During the three and six months ended June 30, 2022, we recognized approximately $0.2 million of transaction costs related to the Crestwood Permian Acquisition, which are included in general and administrative expenses in our consolidated statements of operations.