67 WALL STREET, New York - July 3, 2014 - The Wall Street Transcript has just published its Oil & Gas Review 2014 Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Oil & Gas Review 2014
Companies include: Summit Midstream Partners, LP (SMLP) and many more.
In the following excerpt from the Oil & Gas Review 2014 Report, the Founder, President and CEO of Summit Midstream Partners, LP (SMLP) discusses company strategy and the outlook for this vital industry:
TWST: Your most recent acquisition to close was the Red Rock gathering and processing system. Tell us about that.
Mr. Newby: Red Rock was our second drop-down transaction - meaning it was an asset owned by Summit Investments, our general partner - and we offered that asset and dropped it down into our MLP, our publicly traded entity. Red Rock is a 1,400-plus-mile system in western Colorado; it spans all the way from eastern Utah into western Colorado. We closed on the asset in October 2012 from Energy Transfer, and it really was a consolidation play for us; we already had significant operations in western Colorado, so we could integrate this asset in and squeeze costs out.
But also on the growth side, it had two important growth projects that were just at the beginning stages of being executed on. First was a processing plant being built for a customer called Black Hills to process liquids-rich gas from the Mancos-Niobrara formation in western Colorado. That area interests us greatly, and so it was a very good way to get further exposed to the liquids-rich part of the Mancos-Niobrara.
And then second, Red Rock was just beginning to execute on a large buildout for WPX Energy, another big producer in this area. We knew there was going to be significant growth, so we bought in October 2012, got through the execution of those projects for the most part - there is still some left on the WPX side, but for the most part got through it - and then our strategy is once we de-risk the development side, we offer that business down to the MLP.
TWST: Do you expect the MLP to do more drop-down acquisitions with the general partner? What's the opportunity set there?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.