Summit Midstream Partners LP (NYSE: SMLP) announced March 18 it closed the drop down acquisition of Red Rock Gathering Co. for $305 million.
Grand River Gathering LLC, Dallas-based SMLP's wholly owned subsidiary, agreed to buy 100% of the equity interests in Red Rock from a subsidiary of Summit Midstream Partners LLC ("Summit Investments") in a drop down acquisition, which is when a corporation sells purchased assets to a partnership.
Summit Investments acquired the Red Rock system in October 2012. Red Rock is a natural gas gathering and processing system located in the Piceance Basin in western Colorado and eastern Utah.
The drop down was financed with the net proceeds from SMLP's primary equity offering of 5.3 million common units and borrowings under its revolving credit facility.
Evercore Partners was independent financial advisor to SMLP board's conflicts committee. Akin Gump Strauss Hauer & Feld LLP was legal advisor.
Recommended Reading
Texas LNG Export Plant Signs Additional Offtake Deal With EQT
2024-04-23 - Glenfarne Group LLC's proposed Texas LNG export plant in Brownsville has signed an additional tolling agreement with EQT Corp. to provide natural gas liquefaction services of an additional 1.5 mtpa over 20 years.
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
What's Affecting Oil Prices This Week? (April 22, 2024)
2024-04-22 - Stratas Advisors predict that despite geopolitical tensions, the oil supply will not be disrupted, even with the U.S. House of Representatives inserting sanctions on Iran’s oil exports.
Association: Monthly Texas Upstream Jobs Show Most Growth in Decade
2024-04-22 - Since the COVID-19 pandemic, the oil and gas industry has added 39,500 upstream jobs in Texas, with take home pay averaging $124,000 in 2023.
Shipping Industry Urges UN to Protect Vessels After Iran Seizure
2024-04-19 - Merchant ships and seafarers are increasingly in peril at sea as attacks escalate in the Middle East.