With a new CEO at the driver’s wheel, Summit Midstream in September launched a strategic plan to slash spending with all eyes on further integrating its gas gathering and processing systems in the most productive basins. The Woodlands, Texas-based Summit operates natural gas, crude oil and produced water-gathering systems in its core operating areas of the Appalachian, and in the Williston, DJ, Fort Worth, and Permian basins. The company also holds legacy assets in the Piceance Basin, and the Barnett and Marcellus shale plays. But that’s not where Summit looks to strengthen its balance sheet or secure solid footing.
Headquartered in The Woodlands, Texas, Summit Midstream Partners, LP (NYSE: SMLP) is a growth-oriented master 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.
For Summit, augmenting its gathering lines with processing plants—and vice-versa—in the plays offering higher, long-term growth is where this midstream player has been heading for the last two years. Now, that strategy is showing some legs in the climb. The company announced in July the successful commissioning of a 60 MMCFD cryogenic processing plant in the DJ, which delivers residue gas to Colorado Interstate Gas and Trailblazer Pipeline, and processed NGLs to Overland Pass Pipeline.
And with the countdown in full swing to a new year and decade, Summit announced today it has secured $80 million to fund the next phase of its Double E Pipeline. Upon completion in 2021, the Double E will transport 1.3 BCFD of natural gas from points in the Delaware Basin to delivery points in and around the Texas Waha Hub. The company’s Summit Permian processing system, located in the Delaware, and also completed this year, offers 60 MMCFD of capacity with expanded potential to more than 600 MMCFD.
Like they say, every mountain top is in reach if you just keep climbing.
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