SOURCE: Crestwood Midstream Partners LP

October 19, 2010 08:00 ET

Crestwood Midstream Partners LP Announces Third Quarter Distribution, Conversion of Promissory Note and Schedule for Third Quarter Earnings Release

HOUSTON, TX--(Marketwire - October 19, 2010) -  Crestwood Midstream Partners LP (NYSE: CMLP) ("Crestwood LP") announced today that the board of directors of its general partner has declared a cash distribution of $0.42 per common unit for the 2010 third quarter. This distribution will be paid on November 12, 2010 to unitholders of record on November 2, 2010. The distribution represents a 7.7 percent increase over the $0.39 per unit distribution rate declared with respect to the third quarter of 2009.

Crestwood LP also announced that it will issue approximately 2.3 million common units in connection with the conversion of a promissory note payable to Crestwood Holdings LLC. The promissory note was acquired as part of the acquisition by Crestwood Holdings Partners LLC ("Crestwood") of all of Quicksilver Resources Inc.'s (NYSE: KWK) ownership interests in Crestwood LP and its general partner that was completed on October 1, 2010. The conversion of the promissory note into common units is required under the terms of Crestwood LP's revolving credit facility. The balance outstanding on the note payable was approximately $57.6 million on October 1, 2010, which represented 18.5 percent of the total debt outstanding of Crestwood LP. The additional units are expected to be issued prior to October 29, 2010. 

"Crestwood Holdings is pleased to acquire additional equity interests in Crestwood LP," said Robert G. Phillips, Chairman and Chief Executive Officer of Crestwood. "The additional equity ownership of common units further aligns us with the public unitholders and strengthens Crestwood LP's balance sheet by reducing leverage without having to access the public markets," added Phillips.

Crestwood LP expects to announce its financial results for the third quarter of 2010, on Monday, November 8, 2010, before the New York Stock Exchange opens for trading. Following the announcement, Crestwood will host a conference call for investors and analysts at 9:00 a.m. central time that day to discuss the operating and financial results. Interested parties may participate in the call by joining the conference call at 888-668-1637 and entering passcode 1029455 or through the internet at http://www.visualwebcaster.com/event.asp?id=73581

A replay will be available for 30-days following the conference call by dialing 888-203-1112 and entering the replay passcode 1029455 or listening to streaming audio at http://www.visualwebcaster.com/event.asp?id=73581

About Crestwood Midstream Partners LP

Houston, Texas-based Crestwood LP is a growth-oriented, midstream master limited partnership which owns and operates 100% fee-based gathering, processing, treating and compression assets servicing natural gas producers in the Barnett Shale geologic formation in the Fort Worth Basin of north Texas. For more information about Crestwood LP, visit www.CrestwoodLP.com.

About Crestwood Holdings Partners, LLC

Houston, Texas-based Crestwood Holdings is a private energy company formed by affiliates of First Reserve Corporation, a leading private equity fund manager with extensive investments in the energy industry, and Crestwood Management LLC to pursue the acquisition and development of North American midstream assets and businesses. The company will utilize management's extensive industry experience and relationships to enable its growth through the acquisition of strategic assets, the recruitment of experienced midstream personnel and investment in midstream organic infrastructure projects. For more information about Crestwood Holdings, visit www.CrestwoodGP.com.

Forward-Looking Statements

The statements in this news release regarding future events, occurrences, circumstances, activities, performance, outcomes and results are forward-looking statements. Although these statements reflect the current views, assumptions and expectations of Crestwood LP's management, the matters addressed herein are subject to numerous risks and uncertainties, which could cause actual activities, performance, outcomes and results to differ materially from those indicated. Such forward-looking statements include, but are not limited to, statements about the benefits of the business combination transaction involving Crestwood Holdings and Crestwood LP, including future financial and operating results, the combined company's plans, objectives, expectations and intentions and other statements that are not historical facts. Factors that could result in such differences or otherwise materially affect Crestwood LP's financial condition, results of operations and cash flows include: changes in general economic conditions; fluctuations in natural gas prices; failure or delays by our customers in achieving expected production natural gas projects; competitive conditions in our industry; actions taken or non-performance by third parties, including suppliers, contractors, operators, processors, transporters and customers; fluctuations in the value of certain of our assets and liabilities; changes in the availability and cost of capital; operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control; construction costs or capital expenditures exceeding estimated or budgeted amounts; the effects of existing and future laws and governmental regulations, including environmental and climate change requirements; and the effects of existing and future litigation; the risk that the businesses will not be integrated successfully; the risk that the cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers; as well as other factors disclosed in Crestwood LP's filings with the Securities and Exchange Commission. The forward-looking statements included in this news release are made only as of the date of this news release, and we undertake no obligation to update any of these forward-looking statements to reflect subsequent events or circumstances except to the extent required by applicable law.

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