Gulfport Energy Corp. (NASDAQ: GPOR) said April 26 it agreed to sell Utica midstream assets to an affiliate of EQT Corp. (NYSE: EQT) for $175 million cash.
As part of an agreement with EQT Midstream Partners LP (NYSE: EQM), Gulfport will sell its 25% interest in Strike Force Midstream LLC, a midstream joint venture between Gulfport and EQT.
Strike Force Midstream consists of natural gas gathering assets to support dry gas Utica Shale development in Belmont and Monroe counties, Ohio. The system gathered roughly 900 million cubic feet per day of volume during first-quarter 2018, according to the company press release.
As of March 31, net of distributions and including the contribution of an 11 mile-long, 12-inch diameter gathering line in 2016 valued at $22.5 million, Gulfport has invested $78.9 million in Strike Force Midstream.
Upon completion of the transaction, Gulfport anticipates its capital obligations associated with Strike Force Midstream during 2018 will be eliminated. The company now forecasts its non-D&C capex for full-year 2018 to be reduced by about $20 million from its previously provided guidance.
No impact to Gulfport’s midstream gathering and processing expense is expected as a result of this transaction, which the company anticipates closing on May 1.
Recommended Reading
Enchanted Rock’s Microgrids Pull Double Duty with Both Backup, Grid Support
2025-02-21 - Enchanted Rock’s natural gas-fired generators can start up with just a few seconds of notice to easily provide support for a stressed ERCOT grid.
US Oil and Gas Rig Count Rises to Highest Since June, Says Baker Hughes
2025-02-21 - Despite this week's rig increase, Baker Hughes said the total count was still down 34, or 5% below this time last year.
Devon, BPX to End Legacy Eagle Ford JV After 15 Years
2025-02-18 - The move to dissolve the Devon-BPX joint venture ends a 15-year drilling partnership originally structured by Petrohawk and GeoSouthern, early trailblazers in the Eagle Ford Shale.
E&P Highlights: Feb. 18, 2025
2025-02-18 - Here’s a roundup of the latest E&P headlines, from new activity in the Búzios field offshore Brazil to new production in the Mediterranean.
Baker Hughes: US Drillers Add Oil, Gas Rigs for Third Week in a Row
2025-02-14 - U.S. energy firms added oil and natural gas rigs for a third week in a row for the first time since December 2023.