Crestwood Announces Quarterly Distribution, Reverse Unit Split, and Third Quarter 2015 Earnings Release Date
Crestwood Equity Partners LP (NYSE: CEQP) announced today that the board
of directors of its general partner has declared the partnership’s
quarterly cash distribution of $0.1375 per limited partner unit
($0.55 annually) for the quarter ended September 30, 2015. Crestwood
will issue 1,372,573 preferred units to its preferred unit holders in
lieu of cash distributions. Distributions will be made on November 13,
2015, to unitholders of record as of November 6, 2015.
Reverse Unit Split
Crestwood also announced today the board of directors of its general
partner has approved a 1-for-10 reverse split on its common units,
effective after the market closes on November 23, 2015. The units will
begin trading on a split-adjusted basis on November 24, 2015.
“In a continuing effort to simplify Crestwood, reduce costs and make
Crestwood units more suitable for ownership across the broadest possible
investor base, the Crestwood board has elected to initiate a reverse
unit split,” said Robert G. Phillips, Chairman, President and Chief
Executive Officer. “Due to a number of factors caused largely by
technical trading requirements, Crestwood’s current unit price has
resulted in ownership limitations and restrictions which have negatively
affected the ability of certain investors to own the units at the
current price level. The reverse split is designed to help mitigate
investor concerns, relieve ownership constraints, and it will not affect
our ability to pay distributions. With the simplification merger behind
us, and with some of the exciting development opportunities Crestwood
continues to pursue around our asset footprint, our objective with the
reverse split is simply to broaden the universe of potential investors
and maximize those investors ability to own our units,” stated Phillips.
Pursuant to the reverse split, common unitholders will receive one
common unit for every 10 common units owned. All fractional units
created by the reverse unit split will be rounded to the nearest whole
unit. If the fraction created is less than one-half, it will be rounded
down to the nearest whole unit. If the fraction is one-half or more, it
will be rounded up to the nearest whole unit. Crestwood’s common unit
count will be reduced from approximately 685.5 million outstanding to
approximately 68.5 million outstanding. The announced distribution of
$0.1375 per limited partner unit ($0.55 annually) for the quarter ended
September 30, 2015, will not be impacted by the reverse unit split, as
the distribution will be paid in advance of the effective date of the
reverse split. All future distributions declared by Crestwood’s board of
directors pursuant to the partnership agreement will be declared on a
split-adjusted basis. A new CUSIP number will be issued for the common
units in connection with the reverse split.
Crestwood’s transfer agent, American Stock Transfer and Trust Company,
will act as the exchange agent. Unit adjustments to physical unit
certificates can be made upon surrender of the certificate to the
transfer agent. Please contact American Stock Transfer and Trust Company
for further information at (800) 937-5449 or (212) 936-5100.
Third Quarter Earnings Conference Call Schedule
Crestwood plans to report financial results for the third quarter 2015
on Tuesday, November 3, 2015, before the New York Stock Exchange opens
for trading. Following the announcement, management will host a
conference call for investors and analysts at 9:00 a.m. Eastern Time
(8:00 a.m. Central Time) that day to discuss the operating and financial
results. The call will be broadcast live over the internet. Investors
may participate either by phone or audio webcast.
Dial 201-689-8037 or 877-407-8037 at least 10 minutes before the
call and ask for the Crestwood Earnings Call. A replay will be
available for 7 days by dialing 877-660-6853 or 201-612-7415 and
using the access code 13623252.
Connect to the webcast via the “Presentations” page of Crestwood’s
Investor Relations website at www.crestwoodlp.com.
Please log in at least 10 minutes in advance to register and
download any necessary software. A replay will be available
shortly after the call for 90 days.
About Crestwood Equity Partners LP
Houston, Texas, based Crestwood Equity Partners LP (NYSE: CEQP) is a
master limited partnership that owns and operates midstream businesses
in multiple unconventional shale resource plays across the United
States. Crestwood is engaged in the gathering, processing, treating,
compression, storage and transportation of natural gas; storage,
transportation, terminalling, and marketing of NGLs; and gathering,
storage, terminalling and marketing of crude oil.
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal securities law. Such forward-looking statements are
subject to a variety of known and unknown risks, uncertainties, and
other factors that are difficult to predict and many of which are beyond
management’s control. These risks and assumptions are described in
Crestwood’s annual reports on Form 10-K and other reports that are
available from the United States Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on forward-looking
statements, which reflect management’s view only as of the date made. We
undertake no obligation to update any forward-looking statement, except
as otherwise required by law.
Tax Notice to Foreign Investors
This release serves as qualified notice to nominees under Treasury
Regulation Sections 1.1446-4(b)(4) and (d). Please note that 100% of
Crestwood’s distributions to foreign investors are attributable to
income that is effectively connected with a United States trade or
business. Accordingly, all of Crestwood’s distributions to foreign
investors are subject to federal income tax withholding at the highest
effective tax rate for individuals or corporations, as applicable.
Nominees, and not Crestwood, are treated as the withholding agents
responsible for withholding on the distributions received by them on
behalf of foreign investors.
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