HOUSTON, Sept. 19,
2022 /PRNewswire/ -- Summit Midstream Partners, LP
(NYSE: SMLP) ("Summit", "SMLP" or the "Partnership") announced
today that its wholly owned subsidiary, Summit Midstream Holdings,
LLC ("SMP Holdings"), signed and closed on the sale of Bison
Midstream, LLC ("Bison Midstream"), its gas gathering system in
Burke and Mountrail Counties, North Dakota to Steel Reef Infrastructure
Corp. ("Steel Reef" or the "Company" through its wholly owned
subsidiary Steel Reef US Corp.), an integrated owner and operator
of associated gas capture, gathering and processing assets in
North Dakota and Saskatchewan, for cash consideration of
$40 million, subject to customary
transaction adjustments.
Heath Deneke, President, Chief
Executive Officer and Chairman, commented, "We are pleased to
announce this strategic transaction with Steel Reef. In
combination with the previously announced divesture of the Lane
gathering and processing system earlier this summer, the sale of
Bison Midstream represents a continuation of our strategy to
streamline our portfolio of assets through balance sheet enhancing
transactions while building additional financial flexibility to
reinvest in more strategic scale-building opportunities across our
footprint. With the sale of Bison Midstream, Summit's focus
in the Williston Basin will be on
growing its crude oil and produced water gathering systems
primarily located in Williams and
Divide Counties, North Dakota. We remain excited about the
level of customer development activity in central Williams County and pro forma for the
transaction, we continue to expect over 50 new wells behind our
liquids system in 2023. Pro forma for the transaction, SMLP will
have approximately $90 million drawn
on its $400 million ABL Credit
Facility, resulting in over $300
million of available liquidity. We continue to expect to
trend toward the high end of our 2022 Adjusted EBITDA guidance
range of $205 million to $220 million."
Bison Overview
The Bison Midstream system is located in Mountrail and Burke Counties in northwestern North Dakota. Bison Midstream gathers,
compresses and treats associated natural gas that exists in the
crude oil stream produced from the Bakken and Three Forks shale
formations. The gathering agreements for the Bison Midstream system
include long-term, fee-based or percent-of-proceeds contracts.
Volume throughput on the Bison Midstream system is underpinned by
acreage dedications from its key customers. A large U.S.
independent crude oil and natural gas company and Chord Energy
Corporation are the key customers of Bison Midstream. Natural gas
gathered on the Bison Midstream system is delivered to Aux Sable
Midstream LLC's ("Aux Sable")
Palermo Conditioning Plant in Palermo,
North Dakota and then delivered to downstream pipelines
serving Aux Sable's 2.1 Bcf/d
natural gas processing plant in Channahon, Illinois.
Legal Advisors
Locke Lord L.L.P. served as legal
advisor to Summit and Bracewell LLP served as legal advisor to
Steel Reef.
About Summit Midstream Partners,
LP
SMLP is a value-driven 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, processing and
transportation services pursuant to primarily long-term, fee-based
agreements with customers and counterparties in six unconventional
resource basins: (i) the Appalachian Basin, which includes the
Utica and Marcellus shale
formations in Ohio and
West Virginia; (ii) the
Williston Basin, which includes
the Bakken and Three Forks shale formations in North Dakota; (iii) the Denver-Julesburg
Basin, which includes the Niobrara
and Codell shale formations in Colorado and Wyoming; (iv) the Permian Basin, which
includes the Bone Spring and Wolfcamp formations in New Mexico; (v) the Fort Worth Basin, which includes the Barnett
Shale formation in Texas; and (vi)
the Piceance Basin, which includes the Mesaverde formation as well
as the Mancos and Niobrara shale formations in Colorado.
SMLP has an equity method investment in Double E Pipeline, LLC,
which provides interstate natural gas transportation service from
multiple receipt points in the Delaware Basin to various delivery points in
and around the Waha Hub in Texas. SMLP also has an equity
method investment in Ohio Gathering, which operates extensive
natural gas gathering and condensate stabilization infrastructure
in the Utica Shale in Ohio. SMLP is headquartered in
Houston, Texas.
About Steel Reef
As the leader in associated gas capture in Saskatchewan, our organization enhances the
energy community by reducing the carbon intensity of each barrel
produced while converting associated gas into useable sources of
energy. Formed in 2012, Steel Reef safely operates essential
infrastructure that captures, processes and transports associated
natural gas in the Western Canadian Sedimentary Basin and Bakken
Resource Play. Our integrated asset base enables access to premium
product markets. Privately held since inception, the Company has
deployed approximately $1.0 billion
into a cohesive portfolio of infrastructure assets, with a view to
maximizing long-term shareholder value.
www.steelreef.ca
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 include, without limitation, any statement that may
project, indicate or imply future results, events, performance or
achievements and may contain the words "expect," "intend," "plan,"
"anticipate," "estimate," "believe," "will be," "will continue,"
"will likely result," and similar expressions, or future
conditional verbs such as "may," "will," "should," "would," and
"could." In addition, any statement concerning future
financial performance (including future revenues, earnings or
growth rates), ongoing business strategies and possible actions
taken by us or our subsidiaries are also forward-looking
statements. Forward-looking statements also 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 2021 Annual Report on Form 10-K filed with
the Securities and Exchange Commission (the
"SEC") on February 28, 2022, 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