Energy Capital Partners Forms Summit Midstream
Sep 09, 2009
SHORT HILLS, N.J. and Atlanta, GA September 9, 2009 – Energy Capital Partners ("ECP") announced today the formation of Summit Midstream Partners LLC (“Summit”), a midstream energy company focused on acquiring and developing a portfolio of midstream energy infrastructure assets that are strategically located in traditional and emerging North American production basins and import centers.
ECP also announced today Summit’s acquisition of 75% of DFW Midstream Services, LLC (“DFW Midstream”) from a subsidiary of Energy Future Holdings Corporation (“EFH”) and DFW Midstream’s acquisition of certain natural gas gathering assets located in the Barnett Shale from Chesapeake Energy Marketing, Inc. (CEMI), a division of Chesapeake Energy Corporation (NYSE:CHK). DFW Midstream has signed long-term gas gathering agreements with affiliates of CHK, XTO Energy and Carrizo Oil & Gas, who are among the largest producers of natural gas in the Barnett Shale.
With the completion of these acquisitions, Summit Midstream now owns 75% of DFW Midstream, with the other 25% retained by Energy Future Holdings. DFW Midstream will focus on the development, construction and operation of a natural gas gathering system that is strategically located in the core of the Barnett Shale. To date, DFW Midstream has developed approximately 25 miles of gas gathering pipelines and plans to build approximately 60 miles of additional gas gathering lines over the next 12 months.
“We are excited to launch Summit and broaden our involvement in North America’s midstream energy sector,” said Tom Lane a partner at ECP. “The DFW Midstream acquisition assures that Summit will hit the ground running with a unique footprint in the Barnett Shale and a terrific partner in EFH,” he added.
Steve Newby, President and CEO of Summit, said “The DFW Midstream acquisition is a great first step in our mission to build a premier midstream energy business. We are excited about the relationship with our producer partners and about providing critical natural gas infrastructure to this traditionally underserved, urban environment. This transaction highlights the powerful combination of Summit’s sector experience with Energy Capital Partners’ strong capital position and energy infrastructure expertise.”
About Summit Midstream Partners LLC
Summit is a midstream energy company headquartered in Atlanta, GA and focused on acquiring and developing a portfolio of midstream energy infrastructure assets that are strategically located in traditional and emerging North American production basins and import centers. Summit’s management team has over 30 years of experience in the midstream energy segment having invested in, raised capital and managed over $5 billion of midstream assets including development projects and operating companies. More information about Summit can be viewed at www.summitmidstream.com.
About Energy Capital Partners
ECP is a private equity firm focused on investing in the power generation, midstream gas, renewable energy and electric transmission sectors of North America’s energy infrastructure. The firm’s management has substantial experience leading successful energy companies and energy investments. ECP has offices in Short Hills, NJ and San Diego, CA. For more information, visit www.ecpartners.com.
Energy Capital Partners