DALLAS and DENVER, June 2,
2014 /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 MarkWest Energy Partners, L.P. (NYSE: MWE) ("MarkWest")
announced today that a subsidiary of Summit Investments has
exercised its option to acquire a 40.0% equity interest in Ohio
Gathering Company, L.L.C. and Ohio Condensate Company, L.L.C.
(together, "Ohio Gathering") from affiliates of MarkWest and The
Energy & Minerals Group ("EMG"). In connection with the
exercise of this option, Summit Investments reimbursed MarkWest and
EMG approximately $377.0 million,
which represents 40.0% of all Ohio Gathering capital contributions
made to date.
Ohio Gathering owns, operates and is developing significant
midstream infrastructure in the southern core of the Utica Shale in
southeastern Ohio, including,
Harrison, Guernsey, Belmont, Noble and Monroe counties. The midstream
infrastructure currently in service and under development includes
a liquids-rich gas gathering system and a separate dry gas
gathering system, as well as a condensate transportation, storage
and stabilization facility. Ohio Gathering's liquids-rich
gathering system serves as a critical inlet to MarkWest Utica EMG,
LLC's Cadiz and Seneca processing complexes, the largest
integrated processing and fractionation system in the Utica
Shale.
Through this joint venture, Summit Investments, MarkWest, and
EMG expect to develop over $3.0
billion of natural gas gathering and condensate
stabilization infrastructure for its customers. Ohio
Gathering is currently gathering approximately 181 million cubic
feet per day on behalf of Gulfport Energy Corporation, Rex Energy
Corporation, and PDC Energy, Inc. under long-term, fee-based
gathering agreements.
Steve Newby, President &
Chief Executive Officer of Summit Investments, commented, "This
acquisition, coupled with our 40.0% share of future Ohio Gathering
development capital expenditures, represents the largest
transaction ever by the Summit enterprise. Our team is excited
about increasing Summit's interests in Ohio Gathering and
partnering with MarkWest and EMG, two first-class organizations, to
develop this strategically important natural gas gathering and
condensate stabilization infrastructure in the core of the Utica
Shale. We expect that as Ohio Gathering is further developed,
it will drive tremendous growth for the Summit enterprise over the
next several years."
Frank Semple, Chairman, President
& Chief Executive Officer of MarkWest, commented, "We are very
excited to continue building on our strong relationship with Summit
and welcome them as a partner in the Utica. The Ohio Gathering joint venture is a
critical component of MarkWest and EMG's fully integrated midstream
system in the Utica Shale. Summit has successfully proven their
gathering expertise in the Marcellus and we are confident in their
ability to support our development in the Utica."
About Summit Midstream Partners, LP & Summit Midstream
Partners, LLC
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 North America. SMLP currently provides natural
gas gathering, treating and processing services pursuant to
long-term, primarily fee-based natural gas gathering and processing
agreements with our customers and counterparties in four
unconventional resource basins: (i) the Appalachian Basin, which
includes the Marcellus Shale formation in northern West Virginia; (ii) the Williston Basin, which includes the Bakken and
Three Forks shale formations in northwestern North Dakota; (iii) the Fort Worth Basin, which includes the Barnett
Shale formation in north-central Texas; and (iv) the Piceance Basin, which
includes the Mesaverde formation as well as the Mancos and Niobrara shale formations in
western Colorado and eastern
Utah. SMLP owns and operates 2,294 miles of pipeline and
239,800 horsepower of compression. SMLP is headquartered in
Dallas, TX with regional corporate
offices in Houston, TX,
Denver, CO and Atlanta, GA.
Summit Midstream Partners, LLC ("Summit Investments") indirectly
owns a 56.8% 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 owns,
operates and is developing various crude oil, associated natural
gas, and water-related midstream energy infrastructure assets in
the Bakken Shale in North Dakota
and in the DJ Niobrara Shale in Colorado. Summit Investments is also
developing natural gas gathering and condensate stabilization
infrastructure in the Utica Shale in southeastern Ohio under a joint venture agreement with
affiliates of MarkWest Energy Partners, L.P. and The Energy &
Minerals Group. Summit Investments is a privately held
company owned by members of management, funds controlled by Energy
Capital Partners II, LLC, and GE Energy Financial Services, Inc.
and certain of its affiliates.
About MarkWest Energy Partners, L.P.
MarkWest Energy
Partners, L.P. is a master limited partnership engaged in the
gathering, processing and transportation of natural gas; the
gathering, transportation, fractionation, storage and marketing of
natural gas liquids; and the gathering and transportation of crude
oil. MarkWest has a leading presence in many unconventional gas
plays including the Marcellus Shale, Utica Shale, Huron/Berea
Shale, Haynesville Shale, Woodford
Shale and Granite Wash formation.
About The Energy & Minerals Group
EMG is the
management company for a series of specialized private equity
funds. The Firm was founded by John
Raymond (majority owner and CEO) and John Calvert in 2006. EMG focuses on investing
across various facets of the global natural resource industry
including the upstream and midstream segments of the energy
complex. EMG has approximately $13.9
billion of regulatory assets under management (RAUM) and
approximately $6.5 billion in
commitments have been allocated across the energy sector since
inception.
Summit Midstream 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 our actual
results in future periods to differ materially from anticipated or
projected results. An extensive list of specific material
risks and uncertainties affecting us is contained in our 2013
Annual Report on Form 10-K filed with the Securities and Exchange
Commission on March 10, 2014 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.
MarkWest Forward-Looking Statements
This press
release includes "forward-looking statements." All statements other
than statements of historical facts included or incorporated herein
may constitute forward-looking statements. Actual results could
vary significantly from those expressed or implied in such
statements and are subject to a number of risks and uncertainties.
Although MarkWest believes that the expectations reflected in the
forward-looking statements are reasonable, MarkWest can give no
assurance that such expectations will prove to be correct. The
forward-looking statements involve risks and uncertainties that
affect operations, financial performance, and other factors as
discussed in filings with the Securities and Exchange Commission
(SEC). Among the factors that could cause results to differ
materially are those risks discussed in the periodic reports filed
with the SEC, including MarkWest's Annual Report on Form 10-K for
the year ended December 31, 2013. You
are urged to carefully review and consider the cautionary
statements and other disclosures made in those filings,
specifically those under the heading "Risk Factors." MarkWest does
not undertake any duty to update any forward-looking statement
except as required by law.
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SOURCE Summit Midstream Partners, LLC