DALLAS, Dec. 15, 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 also owns a 49.5% limited partner interest in SMLP, today announced that it has reached an agreement with XTO Energy Inc. ("XTO") to develop and operate a new natural gas gathering system servicing XTO's natural gas production from Belmont and Monroe counties in southeastern Ohio. The gathering system will be owned and developed by a new indirect subsidiary of Summit Investments, Summit Midstream Utica, LLC ("Summit Utica"). XTO will serve as the anchor shipper and has dedicated approximately 29,000 acres to Summit Utica under a long-term, fee-based gathering agreement.
Summit Utica will gather, compress, and deliver natural gas produced by XTO into Regency Energy Partners LP's 2.1 billion cubic feet per day high-pressure Utica Ohio River Trunkline project ("Regency Utica Ohio River"), which is currently under construction, and other downstream delivery points. Summit Utica will consist of over 115 miles of gathering pipeline with four natural gas compressor stations and will have an initial design capacity of approximately 500 million cubic feet per day. The $400 million, multi-year development of the Summit Utica gathering system is currently underway and first flows to Regency Utica Ohio River are expected in the second half of 2015.
Steve Newby, President and CEO of Summit Investments commented, "Today's announcement represents a significant step for the Summit enterprise. This development for XTO establishes Summit's operating presence in the Utica Shale Play. Additionally, this transaction increases Summit Investments' development backlog to more than $2.0 billion and complements our existing Ohio Gathering joint venture with MarkWest Utica EMG where we currently own a 40% non-operated interest."
"We are excited to deepen our relationship with XTO and to serve as their natural gas gathering partner in this strategically important and fast growing basin. We also look forward to executing additional gathering agreements with other large acreage holders in the area over the next several months."
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 primarily long-term and 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 more than 2,300 miles of pipeline and approximately 240,000 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 49.5% 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 and funds controlled by Energy Capital Partners II, LLC, and certain of its affiliates.
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SOURCE Summit Midstream Partners, LLC
Marc Stratton, Vice President and Treasurer, 214-242-1966, ir@summitmidstream.com
