Crescent Midstream's $600M Deal Signals Growth in Gulf Energy

HOUSTON, TX – February 25, 2026 – Crescent Midstream has successfully secured a $600 million debt package, a strategic financial maneuver that not only refinances its existing obligations but also positions the company for significant growth in the critical Gulf of America energy corridor. The deal, which closed on February 18, signals robust investor confidence in the independent midstream operator's assets and its forward-looking strategy.

The new financing consists of two main parts: a $500 million seven-year Term Loan B and a $100 million five-year Revolving Credit Facility. Proceeds were immediately used to restructure the company's balance sheet, extending its debt maturities and enhancing its financial flexibility for the years ahead.

"The outcome of our debt capital raise exemplifies the business we have built over the past decade," said Crescent Midstream's CEO, Jerry Ashcroft, in a statement. "The new facilities extend Crescent's debt maturities, strengthen our credit profile, and provide access to fund growth capital in the institutional and bank markets as we execute on our backlog of accretive growth projects."

A Strengthened Financial Foundation

The refinancing represents a significant step in fortifying Crescent Midstream's financial health. By replacing previous debt with new, longer-term facilities, the company has created a more stable and predictable financial runway. This move is expected to leave only a small $16 million balance drawn from the new revolving credit line, effectively clearing debt from its main holding and operating company levels and simplifying its corporate structure.

In connection with the transaction, the new facilities were assigned speculative-grade credit ratings of B+ from Standard & Poor's and B1 from Moody's. While not investment-grade, these ratings are considered solid within the context of privately-held, independent energy companies, which often carry higher leverage than their publicly traded counterparts.

Standard & Poor's issued a stable outlook alongside its rating, citing the predictability of Crescent's cash flows, which are supported by a favorable contractual framework. The ratings agency projects the company's adjusted leverage to be in the 3.50x to 3.75x range in 2026, with an anticipated improvement to approximately 3.00x in 2027. This outlook suggests confidence in Crescent's ability to generate steady earnings and manage its debt obligations effectively, a key factor for securing capital in the competitive energy market.

Expanding into the Energy Transition

A key aspect of the capital raise, as highlighted by CEO Jerry Ashcroft, is its role in funding "accretive growth projects." While Crescent's core business remains the transportation of crude oil, the company is making a significant and strategic pivot toward the burgeoning field of Carbon Capture and Sequestration (CCS). This move leverages its existing infrastructure and expertise to build a new business line focused on environmental solutions.

One of the company's flagship initiatives is Project Lochridge (Louisiana Offshore CO2 Hub Repurposing Infrastructure to Decrease Greenhouse Emissions). As a partner in this U.S. Department of Energy-backed project, Crescent aims to help develop commercial-scale CO2 storage capacity of up to 300 million tonnes off the Louisiana coast. The company plans to repurpose a 110-mile existing pipeline corridor for CO2 transport, establishing one of the first comprehensive midstream service offerings for the CCS industry.

Furthermore, Crescent is developing an integrated CCS project with Entergy Louisiana to capture carbon emissions from the 994-megawatt Lake Charles power station. This ambitious project, estimated to cost nearly $1 billion, is designed to capture up to 3 million tonnes of CO2 annually. With construction slated to begin in the first quarter of 2026 and a target completion date of 2028, this initiative underscores Crescent's commitment to diversifying its portfolio and playing a role in the energy transition.

Enduring Confidence in Gulf Coast Infrastructure

The successful financing is not just a win for Crescent Midstream; it's also a powerful vote of confidence from major financial institutions in the enduring importance of Gulf Coast energy infrastructure. The deal was arranged and bookrun by a syndicate of global banking giants, including Royal Bank of Canada, JPMorgan Chase Bank, N.A., Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., and The Bank of Nova Scotia. The participation of these top-tier lenders highlights the perceived stability and long-term value of Crescent's asset base.

This confidence is well-founded in the region's market fundamentals. The U.S. Energy Information Administration (EIA) projects that crude oil production in the Federal Offshore Gulf of America will remain stable, averaging around 1.8 million barrels per day through 2026. This consistent offshore output, accounting for roughly 13% of total U.S. production, requires a robust and reliable pipeline network to transport it to shore.

Crescent's network, which serves over 80 deepwater platforms and moves more than 500,000 barrels of crude daily, is a vital link in this supply chain. It connects producers to Louisiana's vast refining complex, the second-largest in the nation, which processes over 3 million barrels of crude per day. As new offshore projects come online to offset natural declines from older fields, the demand for this midstream infrastructure is expected to remain strong, underpinning the contracted, fee-based cash flows that make companies like Crescent attractive to lenders.

While the broader financial world grapples with the complexities of ESG and the energy transition, this $600 million transaction demonstrates that well-managed companies with essential assets and a clear strategy for the future can still secure significant capital. By shoring up its finances and investing in both its core crude business and new low-carbon ventures, Crescent Midstream is positioning itself to be a resilient and pivotal player in the evolving Gulf Coast energy landscape for years to come.