Antero Midstream has acquired gathering and compression assets in the Marcellus Shale from Summit Midstream, the company said on May 2. Antero paid $70 million for the assets.
The assets include two compressor stations and 48 miles of a high-pressure natural gas pipeline collection system. The system is already connected to Antero Midstream’s network and will not require any material capital investment, according to an Antero press release.
“This transaction marks our third highly strategic bolt-on acquisition in Appalachia in the last two years. The compression and high-pressure gathering assets are already interconnected with Antero Midstream’s low-pressure gathering system,” Paul Rady, chairman and CEO said in the release. “As a result of this transaction, Antero Midstream now gathers and compresses substantially all of Antero Resources’ production.”
Antero Resources is a separate company from Antero Midstream, though Antero Resources partially owns the midstream firm.
Antero Midstream paid for Summit’s assets in cash. The transaction closed on May 1 with an effective date of April 1. The company also announced that it has called for the redemption of all outstanding 7.875% senior notes due 2026 for redemption on May 16, 2024.
After the deal, Antero Midstream increased its 2024 adjusted EBITDA guidance by $15 million to between $1.035 billion and $1.075 billion.
Recommended Reading
AI in Oil: Revolution’s Coming, but Tech Adoption Remains Tentative
2024-04-05 - CERAWeek experts say AI will disrupt oil and gas jobs while new opportunities will emerge as the industry braces for an AI-driven workflow transformation.
OTC: E&Ps Improving Operational Safety with Digitization
2024-05-13 - Artificial intelligence and the digitization of the oilfield have allowed for several improvements in keeping operators out of harm’s way, panelists said during the 2024 Offshore Technology Conference.
CERAWeek: Large Language Models Fuel Industry-wide Productivity
2024-03-21 - AI experts promote the generative advantage of using AI to handle busywork while people focus on innovations.
Exclusive: Silixa’s Distributed Fiber Optics Solutions for E&Ps
2024-03-19 - Todd Chuckry, business development manager for Silixa, highlights the company's DScover and Carina platforms to help oil and gas operators fully understand their fiber optics treatments from start to finish in this Hart Energy Exclusive.
CERAWeek: AI, Energy Industry Meet at Scary but Exciting Crossroads
2024-03-19 - From optimizing assets to enabling interoperability, digital technology works best through collaboration.