History & Organization
Headquartered in The Woodlands, TX, 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 North America.
We currently operate natural gas, crude oil and produced water gathering systems in four unconventional resource basins:
- the Appalachian Basin, which includes the Marcellus Shale in northern West Virginia;
- the Williston Basin in northwestern North Dakota, which includes the Bakken and Three Forks shale formations;
- the Fort Worth Basin in north-central Texas, which includes the Barnett Shale formation; and
- 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.
Our systems and the basins they serve are as follows:
- the Mountaineer Midstream system, which serves the Appalachian Basin;
- the Bison Midstream system, which serves the Williston Basin;
- the Polar & Divide system, which serves the Williston Basin;
- the DFW Midstream system, which serves the Fort Worth Basin; and
- the Grand River system, which serves the Piceance Basin.
Our assets comprise over 2,600 miles of gathering pipeline and provide natural gas, crude oil and produced water gathering, services to some of the largest producers in North America including Encana Corporation, Chesapeake Energy Corporation, TOTAL, S.A., Whiting Petroleum Corporation, WPX Energy, Inc., Exxon Mobil Corporation, Antero Resources, Black Hills Corporation and EOG Resources, among others.
We gather over 1.5 Bcf/d of natural gas, of which over 75% contains natural gas liquids (“NGLs”) and 54 Mbbl/d of liquids. The Mountaineer Midstream system delivers to MarkWest Energy Partners, L.P.'s (NYSE: MWE) Sherwood Processing Complex located in Doddridge County, West Virginia. 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 Polar & Divide system gathers crude oil for delivery into Crestwood Midstream Partners LP’s (NYSE: CMLP) COLT Hub and gathers produced water for delivery to third-party or producer-owned injection wells. 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 Products Partners L.P.'s (NYSE: EPD) Trinity River Lateral Pipeline. The Grand River Gathering 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, Inc.'s (NYSE: KMI) TransColorado Pipeline system. Processed NGLs from the Grand River Gathering system are injected into EPD's Mid-America Pipeline system.
We generate a substantial majority of our revenue under primarily long-term and fee-based gathering agreements with our customers. The majority of our gathering agreements are underpinned by areas of mutual interest (“AMIs”) and minimum volume commitments (“MVCs”). Our AMIs cover more than 1.6 million acres in the aggregate and provide that any production 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 gathering revenue over the life of each respective gathering agreement. The fee-based nature of the majority of the gathering agreements enhances the stability of our cash flows and limits our direct commodity price exposure.
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, Polar & Divide and Mountaineer Midstream.