The general partner of Summit Midstream Partners LP (NYSE: SMLP) exercised its option in a Utica joint venture (JV) to acquire a 40% interest in Ohio Gathering Co. LLC and Ohio Condensate Co. LLC, the company said June 2.
Summit, making the largest acquisition in its history, reimbursed its JV partners about $377 million–about 40% of all Ohio Gathering capital contributions made to date. The JV is between Summit, MarkWest Energy Partners LP (NYSE: MWE) and The Energy & Minerals Group (EMG).
In January, Summit Investments acquired an equity interest in Ohio Gathering and Ohio Condensate from Blackhawk Midstream LLC for $190 million.
Summit said June 3 in an investor presentation it intends to invest $1.2 billion in Ohio Gathering through 2018. Through the JV, the companies expect to develop over $3 billion of natural gas gathering and condensate stabilization infrastructure for its customers.
"The Ohio Gathering joint venture is a critical component of MarkWest and EMG's fully integrated midstream system in the Utica Shale,” said Frank Semple, chairman, president and CEO of MarkWest in a June 2 press release. “Summit has successfully proven their gathering expertise in the Marcellus and we are confident in their ability to support our development in the Utica."
Ohio Gathering owns, operates and is developing significant midstream infrastructure in the southern core of the Utica in southeastern Ohio, including, Harrison, Guernsey, Belmont, Noble and Monroe counties. It is currently gathering about 181 million cubic feet per day (MMcf/d) on behalf of Gulfport Energy Corp. (NASDAQ: GPOR), Rex Energy Corp. (NASDAQ: REXX) and PDC Energy Inc. (NASDAQ: PDCE).
"This acquisition, coupled with our 40% share of future Ohio Gathering development capital expenditures, represents the largest transaction ever by the Summit enterprise," said Steve Newby, president and CEO of Summit Midstream Partners LLC, in a June 2 press release.
Summit Midstream Partners LLC is the privately held company that owns and controls the general partner of Summit Midstream Partners LP.
Recommended Reading
Fugro’s Remote Capabilities Usher In New Age of Efficiency, Safety
2024-11-19 - Fugro’s remote operations center allows operators to accomplish the same tasks they’ve done on vessels while being on land.
Range Resources Counters M&A Peer Pressure with Drilling Efficiencies
2024-11-14 - Range Resources doesn’t feel the need to give into M&A peer pressure as it focuses on the efficient development of its current asset base, President and CEO Dennis Degner tells Hart Energy.
EnerMech Secures Contract with Major North Sea Operator
2024-11-13 - EnerMech will monitor the condition of the U.K. assets in accordance with safety and operational standards.
2024 E&P Meritorious Engineering Awards for Innovation
2024-11-12 - Hart Energy’s MEA program highlights new products and technologies demonstrating innovations in concept, design and application.
New Texas 30-MW Data Center Begins Construction
2024-11-11 - Dataprana’s 30-megawatt data center in La Marque, Texas will help satiate the growing demand for cloud services, Web3 applications and digital asset mining.