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
Coterra Takes Harkey Sand ‘Row’ Show on the Road
2024-11-20 - With success to date in Harkey sandstone overlying the Wolfcamp, the company aims to make mega-DSUs in New Mexico with the 49,000-net-acre bolt-on of adjacent sections.
Matador’s U-lateral Delaware Tests Outproduce 2-mile Straight Holes
2024-10-30 - Matador Resources' results from eight Loving County, Texas, tests include two 2-mile U-turn laterals, five 2-mile straight laterals and one 1-mile straight lateral, according to state data.
Shale Outlook: E&Ps Making More U-Turn Laterals, Problem-Free
2025-01-09 - Of the more than 70 horseshoe wells drilled to date, half came in the first nine months of 2024 as operators found 2-mile, single-section laterals more economic than a pair of 1-mile straight holes.
Classic Rock, New Wells: Permian Conventional Zones Gain Momentum
2024-12-02 - Spurned or simply ignored by the big publics, the Permian Basin’s conventional zones—the Central Basin Platform, Northwest Shelf and Eastern Shelf—remain playgrounds for independent producers.
Formentera Joins EOG in Wildcatting South Texas’ Oily Pearsall Pay
2025-01-15 - Known in the past as a “heartbreak shale,” Formentera Partners is counting on bigger completions and longer laterals to crack the Pearsall code, Managing Partner Bryan Sheffield said. EOG Resources is also exploring the shale.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.