THE WOODLANDS, Texas,
July 27, 2018 /PRNewswire/ -- Summit
Midstream Partners, LP (NYSE: SMLP) announced today that it has
executed a precedent agreement with XTO Energy Inc. ("XTO"), a
wholly owned subsidiary of Exxon Mobil Corporation ("ExxonMobil"),
and one of the largest leaseholders and most active producers in
the northern Delaware Basin, to
become a Foundation Shipper on SMLP's Double E Pipeline project
("Double E"). XTO has committed to firm transportation
capacity on Double E under a 10-year take-or-pay agreement which
increases to 500,000 dekatherms per day ("dth/d").
SMLP and ExxonMobil have also executed an equity option
agreement, which provides ExxonMobil or an affiliate the right to
become an equity partner in Double E.
Double E is designed to provide firm interstate natural gas
transportation service from various receipt points in the
Delaware Basin, in New Mexico and Texas, to various delivery points around the
Waha Hub. SMLP will lead the development, permitting and
construction of the project and will operate Double E upon
commissioning, which is expected to occur in 2021.
Steve Newby, President and Chief
Executive Officer, commented, "Today's announcement deepens and
further strengthens our relationship with XTO and broadens SMLP's
service offering for XTO in the Delaware Basin. Double E
Pipeline will support the full production potential of acreage in
the northern Delaware Basin. In addition to its long-term
volume commitment on Double E, we are encouraged by ExxonMobil's
interest in an option for equity participation in Double
E."
SMLP expects to launch a binding open season in August 2018 for 500,000 dth/d of additional firm
capacity on Double E. At the conclusion of the binding open
season, SMLP will outline its final scope, cost estimate and
timeline for bringing the Double E Pipeline project in service.
SMLP continues to expect that, based on shipper interest
received to date, the initial throughput capacity of the Double E
Pipeline will total in excess of 1.0 billion cubic feet per
day.
SMLP has received significant interest from other potential
shippers regarding volume commitments and equity participation in
the project. Also, several financial parties have expressed
interest in equity participation and alternative financing
structures to fund SMLP's portion of the project. SMLP is
currently evaluating these alternatives.
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,
Atlanta, Georgia, Pittsburgh, Pennsylvania and Dallas, Texas.
About Summit Midstream Partners, LLC
Summit Midstream Partners, LLC ("Summit Investments") beneficially
owns a 35.2% 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 8.1% 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 2017 Annual Report on Form 10-K filed with the
Securities and Exchange Commission on February 26, 2018, 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.
View original content with
multimedia:http://www.prnewswire.com/news-releases/summit-midstream-partners-lp-announces-execution-of-precedent-agreement-with-xto-energy-inc-for-firm-transportation-capacity-on-double-e-pipeline-300687607.html
SOURCE Summit Midstream Partners, LP