In the previous article, we saw how the elimination of IDRs (incentive distribution rights) will drive Crestwood Midstream Partners’ (CMLP) cost of capital improvement. In this article, we’ll look at CMLP investors’ reaction to the merger announcement.
Although Crestwood Equity Partners’ (CEQP) distribution growth is expected to resume, Crestwood Midstream (CMLP) investors don’t seem satisfied with the expected distribution growth. CMLP stock fell ~5.81% the day after the merger announcement and ~11.6% on May 26. Here are a few reasons for the drop in price:
View more information: https://marketrealist.com/2015/05/crestwood-midstream-investors-may-not-like-merger/