Williams Partners and Crestwood Midstream Partners Announce Commissioning of Bucking Horse Gas Processing Plant in Niobrara Shale Play

Thursday, February 5, 2015 8:00 am EST

Dateline:

TULSA, Okla.

TULSA, Okla.--(BUSINESS WIRE)--Williams Partners L.P. (NYSE: WPZ) and Crestwood Midstream Partners L.P. (NYSE: CMLP) today announced the commissioning of the Bucking Horse gas processing facility located in Converse County, Wyoming, adding 120 million cubic feet per day (“MMcf/d”) of processing capacity in the Powder River Basin (“PRB”) Niobrara Shale play.

The Bucking Horse plant, along with the Jackalope Gas Gathering System (JGGS), is owned through a 50/50 joint venture between Williams Partners and Crestwood Midstream Partners. The gathering and processing facilities provide services under a long-term, fee-based agreement with Chesapeake Energy Corporation (“Chesapeake”). The Jackalope System includes approximately 184 miles of low pressure gathering pipelines supported by a 311,000-acre area of dedication from Chesapeake. The joint venture expects volumes through the Bucking Horse plant to significantly ramp-up throughout the remainder of the first quarter of 2015 utilizing much of its capacity as existing rich gas production is re-directed from third-party processing facilities and previously curtailed volumes along the Jackalope System begin to flow.

“The Bucking Horse Plant positions us for additional and continued growth in the Niobrara Shale,” said Walter Bennett, senior vice president, Williams’ West operating area. “Adding this asset to the Williams portfolio enhances the services we provide to Chesapeake. It also expands the existing Williams footprint in Wyoming that includes over 2.2 billion cubic feet per day (“bcf”) of combined processing capacity at Opal and Echo Springs. Williams’ extensive operating expertise in Wyoming will allow JGGS to provide valuable midstream services focused on meeting customer needs. I am very appreciative of the great work by our entire Wyoming and Niobrara Shale team in coming together to get this plant up and running.”

Heath Deneke, president, natural gas business unit of Crestwood, commented, “We are pleased to complete the Bucking Horse plant and provide additional processing capacity to the underserved PRB Niobrara play. We look forward to working with Williams as our joint venture partner and providing Chesapeake with reliable gathering and processing services. The completion of the Bucking Horse plant adds a substantial component to Crestwood’s portfolio of fee-based contracts and provides additional opportunities for long-term infrastructure development as production from the emerging PRB Niobrara continues to increase.”

Williams Partners (NYSE: WPZ) is an industry-leading master limited partnership with operations across the natural gas value chain from transportation and processing to petchem production of ethylene, propylene and other olefins. With positions across top U.S. supply basins and also in Canada, Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – moving approximately 20 percent of U.S. natural gas for clean-power generation, home heating and industrial use. In addition to gathering, processing, transportation and storage of natural gas and natural gas liquids, Williams Partners is positioned to connect abundant domestic supplies with international markets. Tulsa, Okla.-based Williams (NYSE: WMB), a premier provider of large-scale North American natural gas infrastructure, owns the general partner of and controlling interest in Williams Partners. www.williams.com

About Crestwood Midstream Partners LP

Houston, Texas, based Crestwood Midstream (NYSE: CMLP) is a master limited partnership that owns and operates midstream businesses in multiple unconventional shale resource plays across the United States. Crestwood Midstream is engaged in the gathering, processing, treating, compression, storage and transportation of natural gas; storage, transportation and terminalling of NGLs; and gathering, storage, terminalling and marketing of crude oil.

About Crestwood Equity Partners LP

Houston, Texas, based Crestwood Equity Partners LP (NYSE: CEQP) is a master limited partnership that owns the general partner interest, including the incentive distribution rights and approximately 4% of the outstanding common units of Crestwood Midstream. In addition, Crestwood Equity’s operations include an NGL supply and logistics business that serves customers in the United States and Canada.

Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the partnership believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the partnership’s annual reports filed with the Securities and Exchange Commission.

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http://www.crestwoodlp.com

Contact:

MEDIA CONTACT:
WPZ
Tom Droege, 918-573-4034
or
INVESTOR CONTACTS:
WPZ
John Porter, 918-573-0797
or
Brett Krieg, 918-573-4614
or
CMLP
Josh Wannarka, 713-380-3081
or
Mark Stockard, 832-519-2207