Summit Midstream to Acquire Piceance Basin Midstream Assets From Encana
DALLAS,Oct. 11, 2011 /PRNewswire/ -- Summit Midstream Partners, LLC ('Summit') announced today that it recently entered into a purchase and sale agreement with Encana Oil & Gas (USA) Inc., a subsidiary of Encana Corporation ('Encana') (TSX,NYSE: ECA), to acquire natural gas midstream assets located in the Piceance Basin for $590 million. The acquired assets encompass approximately 260 miles of pipeline and 90,000 horsepower of compression facilities. The assets serve Mamm Creek, Orchard, and South Parachute production in the area around Rifle, Colorado. Currently, the assets are transporting approximately 500 million cubic feet per day (MMcf/d) of natural gas under long term contracts with multiple producers. In addition to the purchase, Summit has committed to build for Encana the midstream infrastructure necessary to support Encana's emerging Niobrara development. The sale of the Piceance basin midstream assets is subject to certain regulatory approvals and customary closing conditions and is expected to close in the fourth quarter of 2011.
Steve Newby, President and CEO of Summit commented, 'We are extremely excited about the opportunity to expand Summit's operations to the Rockies. In addition to the physical assets, Summit will also add a team of veteran midstream operators with extensive Rockies experience. Our combined team looks forward to providing premium midstream services to Encana and other area producers as the traditional and highly economical Mesa Verde production is supplemented by the emerging Niobrara and Mancos development.'
About Summit Midstream Partners, LLC
Summit is a midstream energy company focused on acquiring and developing a portfolio of midstream energy infrastructure assets that are strategically located in traditional and emerging North American production basins and import centers. Summit is headquartered in Dallas, TX with offices in Atlanta, GA and Houston, TX.
Summit's management team has over 100 years of collective experience in the midstream energy segment having invested in, raised capital and managed over $5 billion of midstream assets including development projects and operating companies. Summit was formed in 2009 by funds controlled by Energy Capital Partners, LLC, a multi-billion dollar private equity firm focused on investing in North America's energy infrastructure. In August 2011, Energy Capital Partners sold an interest in Summit to GE Energy Financial Services. Together, Summit and Energy Capital Partners combine expertise in project development and financial resources to build, own and operate strategically located midstream energy infrastructure. For more information, visit Summit's website at www.summitmidstream.com and Energy Capital Partners at www.ecpartners.com.
Summit Midstream Partners, LLC
CONTACT: Anthea Holley, PUBLIC STRATEGIES, INC, +1-214-743-6200
Web site: http://www.summitmidstream.com/
