HOUSTON and DALLAS, Oct. 12, 2011 /PRNewswire/ -- GE Energy Financial Services, a unit of GE (NYSE : GE ), is expanding its oil and gas industry footprint by investing in Summit Midstream Partners, LLC, which acquires and develops midstream energy infrastructure in unconventional North American production basins.
"Our investment in Summit Midstream builds on our strategy of partnering with growth-oriented companies with strong management and long-term contracted assets," said Dan Castagnola, a managing director at GE Energy Financial Services in Houston. "In working with Summit, we are drawing on our experience in many midstream sectors, as well as in unconventional gas."
GE Energy Financial Services' current midstream equity and debt portfolio totals approximately $2.4 billion. It has invested in a midstream master limited partnership, gas storage assets, a LNG regasification terminal and 40,000 miles of gas pipelines. GE Energy Financial Services is also involved in oil and gas production, from partnerships that own reserves to production platforms.
Summit Midstream's assets include gathering, compression, and dehydration facilities in the core of the Barnett Shale. In addition, yesterday it announced the acquisition of South Piceance Basin assets in the Rockies from an Encana Corp. subsidiary.
Summit's Barnett asset, DFW midstream, is a large gas gathering system in the Arlington, Texas, area consisting of approximately 120 miles of 8-30 inch gathering pipeline and nearly 50,000 horsepower of compression. The Piceance acquisition consists of 260 miles of pipeline and 90,000 horsepower of compression serving multiple customers under long-term contracts. After completion of the Piceance acquisition, Summit will transport approximately 1 bcf of natural gas per day.
"We're pleased to add GE Financial Services as an owner," said Steve Newby, president and CEO of Summit. "Their industry depth and financial backing will be beneficial in helping Summit achieve its growth strategy. Between GE and Energy Capital Partners, Summit maintains some of the strongest financial backing in the midstream industry."
Financial details of GE's investment in Summit were not disclosed.
About Summit Midstream Partners LLC
Summit is a midstream energy company focused on acquiring and developing a portfolio of midstream energy infrastructure assets that are strategically located in traditional and emerging North American production basins and import centers. Summit is headquartered in Dallas, TX with offices in Atlanta, GA and Houston, TX.
Summit's management team has over 100 years of collective experience in the midstream energy segment having invested in, raised capital and managed over $5 billion of midstream assets including development projects and operating companies. Summit was formed in 2009 by funds controlled by Energy Capital Partners, LLC, a multi-billion dollar private equity firm focused on investing in North America's energy infrastructure. In August 2011, Energy Capital Partners sold an interest in Summit to GE Energy Financial Services. Together, Summit and Energy Capital Partners combine expertise in project development and financial resources to build, own and operate strategically located midstream energy infrastructure. For more information, visit Summit's website at www.summitmidstream.com and Energy Capital Partners at www.ecpartners.com.
About GE Energy Financial Services
GE Energy Financial Services' experts invest globally across the capital spectrum in essential, long-lived, and capital-intensive energy assets that meet the world's energy needs. In addition to capital, GE Energy Financial Services offers the best of GE's technical know-how, technology innovation, financial strength, and rigorous risk management. Based in Stamford, Connecticut, the GE business unit helps its customers and GE grow through new investments, strong partnerships, and optimization of its approximately $20 billion in assets. For more information, visit http://www.geenergyfinancialservices.com.
GE (NYSE : GE ) is an advanced technology, services and finance company taking on the world's toughest challenges. Dedicated to innovation in energy, health, transportation and infrastructure, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
SOURCE Summit Midstream Partners, LLC; GE Energy Financial Services