Crestwood Midstream Partners LP (NYSE:CMLP) is a $1.88 billion market capitalized small cap oil and gas producer which has posted $232 million sales in the past 12 months. The oil producer has seen its sales go up by 45% in the past 12 months. Its gross margin is up 79% over the past 12 months. For a small cap it has paid dividend of $1.60 per share over the past 12 months leading to a 7.32% annual yield.
In order to sustain its growth over the next few years Crestwood Midstream Partners has announced on October 17, that it will sell 14 million common shares of stock. The oil firm plans to utilize the proceeds to complete the takeover of Arrow Midstream Holding. The $750 million acquisition is expected to allow Crestwood access to Bakken shale oil reserves. The privately owned Arrow Midstream is a oil production company which is expected to immediately add revenue to the $14.7 million net income that CMLP had reported for the past 12 months. On completion of the deal, Crestwood will be transformed to being one of the biggest “mid stream service provider” and would be able to produce close to 18% of total output from Bakken crude reservoir.
In spite of the oil company attempting to increase its cash flow and production capability the stock price of Crestwood Midstream Partners LP (NYSE:CMLP) has been struggling to attract investors. At close of business on October 22 the share price had settled at $21.87 per share. This has remain unaltered over the past two trading days with no investors coming forward to trade in the stock during the entire days trading on October 22. In the past 12 months the stock has appreciated by 1.58% and by close to 8.9% over the past 90 days.