THE WOODLANDS, Texas,
July 7, 2017 /PRNewswire/
-- Summit Midstream Partners, LP (NYSE: SMLP) announced today
that it has executed an agreement with XTO Energy Inc. ("XTO") to
develop, own and operate a new associated natural gas gathering and
processing system servicing acreage located in the northern
Delaware Basin in Eddy and Lea
counties in New Mexico.
Summit will initially construct a gathering and processing
system with high and low pressure gathering and discharge
pipelines, two compressor stations and a cryogenic processing plant
with 60 million cubic feet per day ("MMcf/d") of processing
capacity. Summit's processing complex will have the ability
to be expanded to over 600 MMcf/d of processing capacity, as
warranted, to meet customer needs. Summit expects to process
production from XTO and other nearby producers. The initial
phase of the project is expected to be operational on or before
June 1, 2018 at a total investment
cost of approximately $110.0
million.
Steve Newby, President and Chief
Executive Officer, commented, "Today's announcement represents a
significant step for Summit. This greenfield development project
establishes Summit as a key midstream service provider in the
Delaware Basin, one of the most
active, economic and exciting plays in North America. This initial system is expected
to provide SMLP with a platform for significant organic expansion
across crude oil, natural gas and produced water gathering and/or
processing services for years to come. We look forward to
executing additional commercial agreements with other producers in
the area."
About Summit Midstream Partners, LP
SMLP is a growth-oriented limited partnership focused on
developing, owning and operating midstream energy infrastructure
assets that are strategically located in the core producing areas
of unconventional resource basins, primarily shale formations, in
the continental United States.
SMLP provides natural gas, crude oil and produced water gathering
services pursuant to primarily long-term and fee-based gathering
and processing agreements with customers and counterparties in five
unconventional resource basins: (i) the Appalachian Basin, which
includes the Marcellus and Utica
shale formations in West Virginia
and Ohio; (ii) the Williston Basin, which includes the Bakken and
Three Forks shale formations in North
Dakota; (iii) the Fort
Worth Basin, which includes the Barnett Shale formation in
Texas; (iv) the Piceance Basin,
which includes the Mesaverde formation as well as the Mancos and Niobrara shale formations in Colorado and Utah; and (v) the Denver-Julesburg Basin,
which includes the Niobrara and
Codell shale formations in Colorado and Wyoming. SMLP is in the process of
developing new gathering and processing infrastructure in a sixth
basin, the Delaware Basin, in
New Mexico. SMLP also owns
substantially all of a 40% ownership interest in Ohio Gathering,
which is developing natural gas gathering and condensate
stabilization infrastructure in the Utica Shale in Ohio. SMLP is headquartered in The Woodlands, Texas, with regional corporate
offices in Denver, Colorado and
Atlanta, Georgia.
About Summit Midstream Partners, LLC
Summit Midstream Partners, LLC ("Summit Investments")
beneficially owns a 34.7% limited partner interest in SMLP and
indirectly owns and controls the general partner of SMLP, Summit
Midstream GP, LLC, which has sole responsibility for conducting the
business and managing the operations of SMLP. Summit Investments is
a privately held company controlled by Energy Capital Partners II,
LLC, and certain of its affiliates. An affiliate of Energy Capital
Partners II, LLC directly owns an 7.9% limited partner interest in
SMLP.
Forward-Looking Statements
This press release includes certain statements concerning
expectations for the future that are forward-looking within the
meaning of the federal securities laws. Forward-looking statements
contain known and unknown risks and uncertainties (many of which
are difficult to predict and beyond management's control) that may
cause SMLP's actual results in future periods to differ materially
from anticipated or projected results. An extensive list of
specific material risks and uncertainties affecting SMLP is
contained in its 2016 Annual Report on Form 10-K filed with the
Securities and Exchange Commission on February 27, 2017, and as amended and updated
from time to time. Any forward-looking statements in this press
release are made as of the date of this press release and SMLP
undertakes no obligation to update or revise any forward-looking
statements to reflect new information or events.
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SOURCE Summit Midstream Partners, LP