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Overview

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Growth Strategy

Overview


Headquartered in Dallas, TX, Summit Midstream Partners, LP (NYSE: SMLP) is a growth-oriented master limited partnership focused on owning, operating, developing and acquiring strategically located midstream infrastructure assets in unconventional resource basins, primarily shale formations, in North America. We currently own and operate four natural gas gathering systems positioned in the core areas of (i) the Piceance Basin in western Colorado and eastern Utah, which includes the liquids-rich Mesaverde formation as well as the emerging Mancos and Niobrara Shale formations, (ii) the Fort Worth Basin in north-central Texas, which includes the Barnett Shale formation, (iii) the Williston Basin in northwestern North Dakota, which includes the Bakken and Three Forks shale formations, and (iv) the Appalachian Basin, which includes the Marcellus Shale in northern West Virginia. Grand River Gathering, LLC (“Grand River”) is our gathering and processing system in the Piceance Basin, DFW Midstream Services LLC (“DFW Midstream”) is our gathering system in the Barnett Shale Play, Bison Midstream, LLC (“Bison Midstream”) is our gathering system in the Bakken Shale Play, and Mountaineer Midstream Company, LLC (“Mountaineer Midstream”) is our gathering system in the Marcellus Shale Play.

 

Our assets comprise approximately 2,294 miles of gathering pipeline and 239,800 horsepower of compression which enable us to provide gathering, treating and processing services to some of the largest natural gas producers in North America including Encana Corporation, Chesapeake Energy Corporation, TOTAL, S.A., EnerVest, Ltd., WPX Energy, Inc., Exxon Mobil Corporation, Antero Resources, Black Hills Corporation and EOG Resources, among others. We gather over 1.3 Bcf/d of natural gas, of which approximately 70% contains natural gas liquids (“NGLs”). The Grand River system interconnects with downstream pipelines serving Enterprise Products Partners L.P.’s (NYSE: EPD) Meeker Natural Gas Processing Plant, Williams Partners L.P.’s (NYSE: WPZ) Northwest Pipeline system, and Kinder Morgan Energy Partners L.P.’s (NYSE: KPM) TransColorado Pipeline system. Processed natural gas liquids from the Grand River Gathering system are injected into Enterprise’s Mid-America Pipeline system. The DFW Midstream system interconnects with third-party intrastate pipelines including Atmos Energy Corp.’s (NYSE: ATO) Line X, Energy Transfer Partners, L.P.’s (NYSE: ETP) Old Ocean Pipeline, and Enterprise’s Trinity River Lateral Pipeline. Natural Gas on the Bison Midstream system is compressed, dehydrated, and delivered to the Aux Sable Midstream LLC’s Palermo Plant for conditioning and is subsequently discharged to downstream pipelines for further processing in the Chicago area. The Mountaineer Midstream system delivers to MarkWest Energy Partners, L.P.'s (NYSE: MWE) Sherwood Processing Complex located in Doddridge County, West Virginia.

 

We generate the majority of our revenue pursuant to long-term, fee-based gas gathering agreements (“GGAs”) with our customers. The majority of our GGAs are underpinned by areas of mutual interest (“AMIs”) and minimum volume commitments (“MVCs”). Our AMIs cover over 1.4 million acres in the aggregate and provide that any production from natural gas wells drilled by our customers within the AMIs will be shipped on our gathering systems. The MVCs are designed to ensure that we will generate a minimum amount of gas gathering revenue over the life of each respective GGA. The fee-based nature of these GGAs enhances the stability of our cash flows and limits our direct commodity price exposure.

 

Our management team was assembled to execute our Buy-Build-Partner growth strategy, which involves the pursuit of midstream acquisitions, greenfield development projects, and strategic partnerships with producers and other midstream participants. The team has over 200 years of combined experience in the midstream industry and provides a full range of engineering, construction, operations, commercial, and project management capabilities. Since our formation in 2009, our management team has established a track record of executing this growth strategy through the acquisition and subsequent development of DFW Midstream, Grand River, Bison Midstream and Mountaineer Midstream.

 

Buy – We intend to pursue opportunities to expand our asset base by acquiring midstream infrastructure assets from producers and other midstream asset owners, including Summit Investments. In addition to its control of and significant ownership interest in us, Summit Investments also owns and is developing crude oil, natural gas and water-related midstream assets in service and under development in geographic areas in which we currently operate as well as in areas outside of our current operations, including the Bakken Shale Play in North Dakota, the DJ Niobrara Shale Play in Colorado and the Utica Shale Play in Ohio. We believe that Summit Investments' economic interest in us incentivizes it to offer us opportunities to acquire these assets in the future under accretive terms.

 

Build – We believe that our gathering systems provide us with significant organic expansion opportunities. We intend to leverage our management team's expertise in constructing, developing and optimizing midstream infrastructure assets to grow our business through organic development projects that are designed to extend our geographic reach, diversify our customer base, expand our midstream service offerings, increase the number of natural gas receipt points and maximize volume throughput.

 

Partner – We seek to promote commercial relationships with established and well-capitalized producers who are willing to serve as an anchor customer and commit to long-term volumes and areas of mutual interest. We will continue to pursue partnership opportunities with established producers to develop new infrastructure in unconventional resource basins that we believe will complement our existing midstream assets or enhance our business by facilitating our entry into new basins. These opportunities generally consist of a strategic acreage position in an unconventional resource play and represent assets that are well-positioned for accelerated production growth but have minimal existing midstream energy infrastructure to support such growth.

© 2013 Summit Midstream