Gulfport Sells Ohio Midstream Assets; MarkWest, EMG Form Utica JV

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
190MM
Description

To purchase equity Blackhawk's equity interests in Ohio Gathering Co. LLC and Ohio Condensate Co. LLC.

Gulfport Energy Corp. (Nasdaq: GPOR) announced Dec. 20 will sell Blackhawk Midstream LLC's equity interest in two entities, Ohio Gathering Co. LLC and Ohio Condensate Co. LLC, to Summit Mistream Partners LLC for $190 million.

Oklahoma City-based Gulfport owns 50% interest in Blackhawk, which has agreed to sell its equity interest in Ohio Gathering. Ohio Gathering is currently owned by MarkWest Utica EMG LLC and Blackhawk.

Ohio Gathering owns, operates and is developing significant midstream infrastructure in southeastern Ohio consisting of a liquids-rich natural gas gathering system, a dry natural gas gathering system and a condensate stabilization, storage and terminaling facility in the core of the Utica shale play.

The equity interests to be acquired by Summit Investments include an option to increase its ownership interest in Ohio Gathering to 40%. Barclays Capital Inc. was financial advisor and Vinson & Elkins LLP was legal advisor to Summit. The transaction is expected to close by Jan. 31.

Additionally, MarkWest Energy Partners LP (NYSE: MWE) and The Energy & Minerals Group (EMG) announced Dec. 19 the execution of definitive agreements with Gulfport to provide stabilization services and potential gathering services for condensate produced within an area that includes Belmont, Harrison, Guernsey, Noble, and Monroe counties, Ohio. Gulfport is rapidly developing their acreage within the wet gas, retrograde condensate and oil windows of the emerging Utica shale and currently has over 147,000 net acres under lease.

Denver's MarkWest and Houston's EMG will form Ohio Condensate Co. LLC, a new joint venture related to the development of industry-leading facilities and services to support the rapid growth of condensate production occurring in the liquids-rich areas of the Utica shale. Discussions regarding the joint venture’s condensate solutions are also underway with numerous other Utica producers.