July 23, 2012 / 10:33 PM / in 5 years

UPDATE 1-Crestwood Midstream cuts outlook on weak drilling activity

* Sees FY Adj EBITDA $125 mln-$130 mln vs prior forecast of $135 mln-$140 mln

* Sees Q2 gathering volumes 560 MMcf/d vs 611 MMcf/d in Q1

* Shares fall 4 pct in extended trade

July 23 (Reuters) - Crestwood Midstream Partners LP expects second-quarter gathering volumes to be lower than the first due to production-related delays, and the pipeline services provider cut its full-year adjusted EBITDA forecast.

Crestwood now expects adjusted earnings before interest, taxes, depreciation, amortization and accretion (EBITDA) to be $125 million to $130 million, lower than its prior forecast of $135 million to $140 million.

The company, which provides services to natural gas producers, expects total gathering volumes in the second quarter to fall to 560 million cubic feet per day (MMcf/d), from 611 MMcf/d in the first quarter.

Crestwood said the revised forecast includes second-quarter results that were impacted by delays in well completions and moderated drilling activity in dry gas areas for the remainder of the year.

Separately, the company said it bought certain assets in the liquids-rich southwestern area of the Barnett Shale from a unit of Devon Energy Corp for $90 million.

Houston, Texas-based Crestwood’s shares, which have gained 14 percent in the past month, fell 4 pct in aftermarket trading. They closed at $28.83 on Monday on the New York Stock Exchange.

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