Summit looks to expand gas holdings portfolio

Firm to buy ETC Canyon Pipeline in deal valued at $207 million

Summit Midstream Partners, LLC, is seeking to vastly expand its local and overall natural gas pipeline holdings with a proposed $207 million acquisition.

Summit announced Friday it has agreed to spend that amount to acquire ETC Canyon Pipeline, LLC, which gathers and processes natural gas in the Piceance and Uinta basins in Colorado and Utah.

Summit has reached the agreement with La Grange Acquisition, LP, a subsidiary of Energy Transfer Partners, LP. The purchase would entail more than 1,600 miles of pipeline, 44,000 horsepower of compression facilities, processing facilities with a total capacity of 97 million cubic feet of gas per day and two natural gas liquids injection stations.

The deal is subject to regulatory approvals and other closing conditions and is expected to be completed in the fourth quarter of this year.

Last year, in its initial expansion to the Rockies, Summit agreed to spend $590 million to buy part of the Piceance Basin distribution systems of Encana USA. The deal consisted of 260 miles of pipeline and 90,000 horsepower of compression facilities in the Rifle-Parachute area. The facilities transport 500 million cubic feet of gas per day.

Summit is based in Dallas and has offices in Denver, Atlanta and Houston. It also has holdings in the Fort Worth Basin, which includes the Barnett Shale formation in Texas.

The company was formed in 2009 by members of its management and funds controlled by Energy Capital Partners II, LP, a private equity firm. That firm sold an interest in Summit to GE Energy Financial Services last year.

Last month, Summit filed for an initial public stock offering of about $301.9 million to support its growth. Summit said in a U.S. Securities and Exchange Commission filing that its holdings as of June 30 included about 385 miles of pipeline and 147,600 horsepower of compression, and its systems gathered an average of about 909 million cubic feet of natural gas per day during the first half of the year.


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