Summit Midstream Partners LP (NYSE: SMLP) announced March 18 it closed the drop down acquisition of Red Rock Gathering Co. for $305 million.
Grand River Gathering LLC, Dallas-based SMLP's wholly owned subsidiary, agreed to buy 100% of the equity interests in Red Rock from a subsidiary of Summit Midstream Partners LLC ("Summit Investments") in a drop down acquisition, which is when a corporation sells purchased assets to a partnership.
Summit Investments acquired the Red Rock system in October 2012. Red Rock is a natural gas gathering and processing system located in the Piceance Basin in western Colorado and eastern Utah.
The drop down was financed with the net proceeds from SMLP's primary equity offering of 5.3 million common units and borrowings under its revolving credit facility.
Evercore Partners was independent financial advisor to SMLP board's conflicts committee. Akin Gump Strauss Hauer & Feld LLP was legal advisor.
Recommended Reading
E&P Highlights: Dec. 16, 2024
2024-12-16 - Here’s a roundup of the latest E&P headlines, including a pair of contracts awarded offshore Brazil, development progress in the Tishomingo Field in Oklahoma and a partnership that will deploy advanced electric simul-frac fleets across the Permian Basin.
Hibernia IV Joins Dawson Dean Wildcatting Alongside EOG, SM, Birch
2025-01-30 - Hibernia IV is among a handful of wildcatters—including EOG Resources, SM Energy and Birch Resources—exploring the Dean sandstone near the Dawson-Martin county line, state records show.
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.
Baytex Completes Sale of Kerrobert Thermal Asset for $42MM
2024-12-23 - Baytex Energy’s divested Kerrobert non-core thermal asset can produce approximately 2,000 bbl/d of heavy oil.
Wildcatting is Back: The New Lower 48 Oil Plays
2024-12-15 - Operators wanting to grow oil inventory organically are finding promising potential as modern drilling and completion costs have dropped while adding inventory via M&A is increasingly costly.