SMLP to become a partner with MWE-EMG in Utica condenstate-gathering systems
Msg 34737 of 34742 at 12/20/2013 9:09:01 AM by passandshoot SMLP Acquires Ohio Assets
DALLAS, Dec. 20, 2013 /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), announced today that it has executed a definitive agreement with Blackhawk Midstream, LLC ("Blackhawk"), to acquire its equity interest in two entities, Ohio Gathering Company, L.L.C. and Ohio Condensate Company, L.L.C. (together, "Ohio Gathering"). Ohio Gathering owns, operates and is developing significant midstream infrastructure in southeastern Ohio consisting of a liquids-rich natural gas gathering system, a dry natural gas gathering system and a condensate transportation, storage and stabilization facility in the core of the Utica Shale play.
Ohio Gathering Company, L.L.C. is currently owned by (i) MarkWest Utica EMG, L.L.C. ("MarkWest Utica EMG"), a joint venture between MarkWest Energy Partners, L.P. ("MarkWest") and the Energy and Minerals Group ("EMG"), and (ii) Blackhawk, a joint venture between Gulfport Energy Corporation ("Gulfport") and Wexford Capital LP. Ohio Condensate Company, L.L.C. is currently owned by (i) MarkWest Utica EMG Condensate, L.L.C. ("MarkWest Utica EMG Condensate"), a separate joint venture between MarkWest and EMG, and (ii) Blackhawk. The purchase of the equity interests in Ohio Gathering will be fully funded by Summit Investments and its sponsors. The transaction is expected to close by January 31, 2014.
The equity interests to be acquired by Summit Investments include an option to increase its ownership interest in Ohio Gathering to 40.0% at any time prior to June 2014 at a price based on the capital invested by the owners at the time the option is exercised. Summit Investments expects to fully exercise the option in the second quarter of 2014. Upon exercise of the option by Summit Investments..MarkWest Utica EMG will retain 60% intere
ARB: I don't expect them to stop now. The opportunities are here now. The capital and JV partners are available now. So now is the time to build the empire that will be built by someone, if MWE doesn't. Also, don't forget MWE likes EMG as a JV partner because when there is a break in the action MWE can cut a reasonable deal to buy them out and get a larger piece of the action. You are a good numbers man- Can you please figure out and give me some kind of a best efforts guesstimate as to what DCF can reach in the next two years and what it might translate into distribution amounts paid per unit.
Thanks in advance for any ideas.