Summit Investments Announces Expansion of Its Crude Oil and Water Gathering System in Bakken Shale Play
DALLAS, June 25, 2013 /PRNewswire/ -- Summit Midstream Partners, LLC ("Summit Investments"), the privately held company that owns and controls the general partner of Summit Midstream Partners, LP (NYSE: SMLP) and also owns a 71.6% limited partner interest in SMLP, announced today a significant expansion of its Divide crude oil and water gathering system currently under construction in Williams and Divide counties in North Dakota. In addition to the approximately 90 miles of crude gathering pipeline being constructed as part of the Divide system, Summit Investments will construct approximately 145 miles of new gathering pipeline capable of handling up to 45,000 barrels of crude oil and 45,000 barrels of water per day. The expansion is supported by the recent execution of a new, ten year, fee-based crude oil and water gathering agreement covering 250,000 dedicated acres with a leading independent producer in the Bakken Shale Play. The total capital expenditures for the expansion are approximately $60 million and will add to the approximately $200 million of expansion capital being spent by Summit Investments in 2013. The expansion is expected to be put in service in phases between the fourth quarter of 2013 and the first quarter of 2014.
Steve Newby, President and CEO of Summit Investments commented, "The execution of this new commercial agreement reflects the next step in our growth strategy to expand our presence in the Bakken Shale Play through organic development projects. We are excited to expand our existing crude oil and water gathering service offerings to new customers that are actively drilling around our Divide system, and we expect to continue to expand our gathering system with other producers that are active in the area. This development will add additional scale to our already large inventory of future drop down opportunities for SMLP."
About Summit Midstream Partners, LLC
Summit Midstream Partners, LLC is a growth-oriented midstream energy company focused on owning and operating midstream energy infrastructure assets that are strategically located in the core areas of unconventional resource basins, primarily shale formations, in North America. Through its ownership of (i) Summit Midstream GP, LLC, the general partner of Summit Midstream Partners, LP; (ii) a 71.6% limited partner interest in Summit Midstream Partners, LP; (iii) Red Rock Gathering Company, LLC; and (iv) Meadowlark Midstream Company, LLC, Summit Investments provides primarily fee-based natural gas gathering, treating, processing, and compression services, as well as crude oil and water gathering services supporting some of the largest oil and gas exploration and production companies in North America. Summit Investments has operations in the Piceance Basin in western Colorado, the Fort Worth Basin in north-central Texas, the Uinta Basin in eastern Utah, the Williston Basin in northwestern North Dakota, Denver-Julesburg Basin in northeastern Colorado, and the Appalachian Basin in northern West Virginia. Summit Investments is headquartered in Dallas, TX with offices in Houston, TX, Denver, CO and Atlanta, GA.
Summit Investments was formed in 2009 by members of management and funds controlled by Energy Capital Partners II, LLC. Together with its affiliates, Energy Capital Partners is a private equity firm with over $7.5 billion in capital commitments that is focused on investing in North America's energy infrastructure. In August 2011, Energy Capital Partners sold an interest in Summit Investments to GE Energy Financial Services. GE Energy Financial Services invests globally in essential, long-lived and capital-intensive energy assets.
SOURCE Summit Midstream Partners, LLC
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