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
Galp Seeks to Sell Stake in Namibia Oilfield After Discovery, Sources Say
2024-04-22 - Portuguese oil company Galp Energia has launched the sale of half of its stake in an exploration block offshore Namibia.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.
US Raises Crude Production Growth Forecast for 2024
2024-03-12 - U.S. crude oil production will rise by 260,000 bbl/d to 13.19 MMbbl/d this year, the EIA said in its Short-Term Energy Outlook.
US Drillers Add Oil, Gas Rigs for First Time in Five Weeks
2024-04-19 - The oil and gas rig count, an early indicator of future output, rose by two to 619 in the week to April 19.
US Drillers Cut Oil, Gas Rigs for Fourth Time in Five Weeks
2024-05-24 - The oil and gas rig count, an early indicator of future output, fell by four to 600 in the week to May 24 the lowest since January 2022.