Summit Midstream Partners LP, Houston, agreed to sell Summit Midstream Utica LLC, which includes its 36% interest in Ohio Gathering Co. LLC (OGC), 38% interest in Ohio Condensate Co. LLC (OCC), and wholly owned Utica assets to a subsidiary of MPLX LP for $625 million in cash. MPLX is operator and a joint venture partner of OGC and OCC.
The deal is the culmination of the comprehensive strategic review process undertaken by the company board of directors, in consultation with external advisors, that was announced in October 2023.
As part of the review, the board also decided to pursue a plan to convert the company to a C-Corp. The board and management plan to seek approval from Summit unitholders to convert the partnership to a C-Corp at a special meeting to be held later this year.
Utica position overview
The Summit Utica system is a natural gas gathering system in Belmont and Monroe counties in southeastern Ohio and serves producers targeting the dry-gas reserves of Utica and Point Pleasant shale formations. The Summit Utica system gathers and delivers natural gas, primarily under long-term, fee-based gathering agreements, which include acreage dedications.
Ohio Gathering comprises a natural gas gathering system and condensate stabilization plant in Utica shale in southeastern Ohio. The gathering system spans the condensate, liquids-rich and dry-gas windows of Utica for multiple producers that are targeting production from the Utica and Point Pleasant shale formations across Belmont, Monroe, Guernsey, Harrison, and Noble counties in southeastern Ohio. Substantially all gathering services on the Ohio Gathering system are provided pursuant to long-term, fee-based gathering agreements.