Summit Midstream Expanding Bakken System - $300 Million

June 13, 2014 Kirk Eggleston

Summit Midstream Partners announced in June of 2014 that it will spend $300 million on four new development projects involving oil, water and natural gas gathering in the Bakken Shale play. The new projects will further expand the companies footprint in Williams and Divide counties. In June of 2013, Summit announced plans to spend $60 million on development projects in North Dakota.

One of the Summit's new projects is geared towards providing customers with additional crude oil interconnects. Meadowlark, a wholly owned operating subsidiary of Summit, will construct a new crude oil truck unloading station. With this project, Meadowlark will provide its customers with a new interconnect for up to 50,000 b/d of crude oil deliverability, providing access to new downstream markets on both the East and West Coasts.

“We expect our new organic development projects will further enhance Summit’s position as a leading, independent midstream provider in the Bakken Shale.”

— CEO Steve Newby.

Another of the company's recently announced projects is a new 240 mile pipeline, which officials say will reduce flaring in North Dakota, as the pipeline gathers natural gas in a remote area currently lacking in infrastructure. The pipeline will be constructed by Tioga Midstream, a subsidiary of Summit Midstream. When it is completed, it is expected to have a total system capacity of 20,000 b/d of crude oil, 25,000 b/d of water, and 14 million cf/d of associated natural gas. The project is supported by a 10 year agreement with an acreage dedication of 114,000 acres.

Summit Midstream Expanding Bakken System In Williams & Divide

June 27, 2013 R.T. Dukes

Summit Midstream plans to spend $60 million to expand its Divide crude oil and water gathering system in Williams and Divide counties. The system includes 90 miles of crude oil gathering pipe already and an additional 145 miles of pipe is being added. The expansion will be able to handled 45,000 b/d of crude oil and 45,000 b/d of water.

Summit purchased Bison Midstream and associated gas gathering for $250 million earlier in June

“The execution of this new commercial agreement reflects the next step in our growth strategy to expand our presence in the Bakken Shale Play through organic development projects.”

— Steve Newby, CEO

The expansion is supported by a ten year agreement with a large independent operator that has dedicated 250,000 acres to the system. The system will be in service in the fourth quarter of 2013 or first quarter of 2014.

Summit Midstream Buys Bison Midstream - Bakken Natural Gas Gathering System

June 6, 2013 R.T. Dukes

Summit Midstream has agreed to buy Bison Midstream, LLC, for $250 million.

Bison Midstream owns a natural gas gathering system that includes 300 miles of low and high pressure gathering lines, as well as six compressor stations (5,950 hp) in Burke and Montrail counties.

New compression is being added and capacity should grow from 20 mmcfd to 30 mmcfd by year-end 2013. A total of $40 million is being spent to improve the system in 2013 ($29 million remaining).

The Bison system is supported by producer commitments from over 675,000 acres and fee based agreements are in place for >$155 million in revenue through 2020. Additional agreements are currently being negotiated.

Steve Newby, CEO commented, "We are very excited about the acquisition of Bison, our first drop down transaction from Summit Investments"

The system includes 229 miles of polyethylene pipe for low-pressure gathering and 70 miles of high pressure steel pipe.

If I deciphered the information on the company's website correctly: Bison Midstream was owned by Summit Investments, who is owned by members of Summit Midstream's management, Energy Capital Partners, and GE Energy Financial Services.

The deal was announced in conjunction with a $210 million acquisition in the Marcellus Shale.

Read the full press release at summitmidstream.com