Summit Midstream (SMLP) will sell its assets in the Utica Shale to an MPLX subsidiary for $625 million in cash.

The deal, announced March 22, includes Summit's 36% interest in the Ohio Gathering Co. and 38% interest in the Ohio Condensate Co., along with other Utica assets. Ohio Gathering owns and operates midstream infrastructure that includes dry and wet natural gas gathering systems and condensate transportation and storage in Southeastern Ohio.

Summit used the deal to drop some of its natural gas-centric assets out of its portfolio at a time of low prices to focus instead on plays that are producing far more profitable crude.

The transaction is the culmination of a strategic review process undertaken by the Summit board of directors, announced on Oct. 3, 2023, Summit said in a press release. The board considered options to increase value for shareholders, including an outright sale of the company.

"We believe there are several value optimizing strategies to pursue to further build scale, particularly in our Permian and Rockies segments," said Heath Deneke, Summit CEO. Crude-rich basins will account for 55% of the company's portfolio after the sale.

According to the company, the sell increases liquidity with a $400 million credit facility and more than $325 million of unrestricted cash, allowing it to reduce debt.

Marathon Petroleum formed MPLX in 2012 as a limited partnership to focus on midstream and logistic infrastructure in key U.S. natural gas basins.

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