Oct. 23, 2012
/PRNewswire/ -- Summit Midstream Partners, LLC ("Summit Investments") announced today that it has closed the
acquisition of ETC Canyon Pipeline, LLC ("Canyon") from La Grange Acquisition, L.P., a wholly-owned subsidiary of Energy Transfer Partners, L.P. Canyon gathers and processes natural gas in the Piceance and Uinta Basins in
, primarily under long-term, fee-based agreements with more than 50 customers including WPX Energy, Noble, Black Hills,
, Encana, ExxonMobil, and Antero. The gas gathering and processing system consists of more than 1,600 miles of pipe, 44,000 horsepower of compression, processing assets with a total capacity of 97 MMcf/d, and two NGL injection stations.
The Canyon assets will be held in Red Rock Gathering Company, LLC ("
"), a wholly-owned subsidiary of Summit Investments, which also owns a gathering system in the Sand Wash Basin in northern
that was acquired in the second quarter of 2012.
, President and Chief Executive Officer of Summit Investments said, "We are excited about the addition of Canyon to Red Rock Gathering Company, LLC.
solidifies our position in the Rockies as a premier midstream operator and should allow the company to capture new business opportunities in the region. We are particularly excited that this acquisition provides the company with increased exposure to the liquid-rich parts of the
and Niobrara Shale formations in the Piceance Basin, where Canyon and Summit Midstream Partners, LP, through its ownership of the Grand River natural gas gathering system, operate.
also provides Summit Investments with additional opportunities to capitalize on growth projects supporting traditional Mesaverde formation production and new production in the
and Sand Wash Basins."
Summit Investments also announced today that
has two new fee-based commercial agreements with WPX Energy Rocky Mountain, LLC and Black Hills Exploration and Production, Inc. Each of these new agreements include long-term acreage dedications and collectively provide more than 350 Bcf of minimum volume commitments. Red Rock will expand its existing gathering and compression services for WPX by constructing gas gathering infrastructure to connect new WPX production in the
will also construct a processing plant and related gas gathering infrastructure in the DeBeque, CO area, which will support Black Hills' future development of their liquids-rich
acreage. The WPX project will be developed and commissioned over the next several years and the Black Hills project is expected to be completed by the end of 2013.
Newby further commented, "These new organic growth projects at
enable us to leverage our asset development skill set and drive contracted, fee-based cash flow growth over the next several years."
About Summit Midstream Partners, LLC
Summit Midstream Partners, LLC is a growth-oriented midstream energy company focused on owning and operating midstream energy infrastructure that is 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 69.1% limited partner interest in Summit Midstream Partners, LP (NYSE: SMLP); and (iii) its 100% ownership of Red Rock Gathering Company, LLC, Summit Investments provides fee-based natural gas gathering, processing and compression services, supporting some of the largest production companies in
, in four unconventional resource basins: (i) the Piceance Basin, which includes the Mesaverde,
and Niobrara Shale formations in western
; (ii) the
Basin, which includes the Barnett Shale formation in north-central
; (iii) the Sand Wash Basin in northern
; and (iv) the
. Summit Investments is headquartered in
with offices in
Summit Investments was formed in 2009 by members of management and funds controlled by Energy Capital Partners II, LP. Together with its affiliates, Energy Capital Partners is a private equity firm with over
in capital commitments that is focused on investing in
's energy infrastructure. In
, Energy Capital Partners sold an interest in Summit to GE Energy Financial Services. GE Energy Financial Services invests globally in essential, long-lived and capital-intensive energy assets.
For more information, visit Summit's website at
, Energy Capital Partners at
and GE Energy Financial Services at