Why Crestwood Equity Partners Rose 27.2% in March
Shares of Crestwood Equity Partners (NYSE: CEQP) rose 27.2% in March, according to data provided by S&P Global Market Intelligence. As part of the energy sector, Crestwood has risen with oil prices as the global economy looks forward to reopening. In addition, Crestwood announced a transaction toward the end of the month in which it would buy out a large unitholder while also increasing its 2021 guidance.
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In late March, Crestwood announced it would be buying out large unitholder First Reserve, a private equity firm that held interests in both Crestwood's general partner and its limited partnership. Private equity firms eventually need to cash out of their investments to pay back investors, and now may have seemed like a mutually beneficial time to do so. Crestwood's shares have sharply rebounded from the pandemic-induced panic selling of a year ago, yet have still not recovered to the five-year highs set back in July 2019. So both sides may feel like they are getting a fair deal on the transaction.
Source Fool.com
