Nov 6 - Standard & Poor’s Ratings Services said today that its ratings on U.S. midstream energy partnership Inergy L.P. (BB-/Stable/--) are not currently affected by its announcement that subsidiary Inergy Midstream L.P. has executed an agreement to purchase Rangeland Energy LLC (not rated) for $425 million. Rangeland owns and operates the COLT crude oil rail terminal, storage, and pipeline facilities in the Bakken Shale, in North Dakota. Inergy Midstream plans to fund the transaction with $225 million in privately placed common units and committed unsecured debt financing.
The acquisition will expand Inergy’s geographic footprint and is underpinned primarily by take-or-pay contracts with an average contract life of about four years, which is supportive of credit in our view. The COLT system has 720,000 barrels of crude oil storage and can accommodate 120-car-unit trains that can move 120,000 barrels of crude per day.