Antero Midstream has acquired gathering and compression assets in the Marcellus Shale from Summit Midstream, the company said on May 2. Antero paid $70 million for the assets.
The assets include two compressor stations and 48 miles of a high-pressure natural gas pipeline collection system. The system is already connected to Antero Midstream’s network and will not require any material capital investment, according to an Antero press release.
“This transaction marks our third highly strategic bolt-on acquisition in Appalachia in the last two years. The compression and high-pressure gathering assets are already interconnected with Antero Midstream’s low-pressure gathering system,” Paul Rady, chairman and CEO said in the release. “As a result of this transaction, Antero Midstream now gathers and compresses substantially all of Antero Resources’ production.”
Antero Resources is a separate company from Antero Midstream, though Antero Resources partially owns the midstream firm.
Antero Midstream paid for Summit’s assets in cash. The transaction closed on May 1 with an effective date of April 1. The company also announced that it has called for the redemption of all outstanding 7.875% senior notes due 2026 for redemption on May 16, 2024.
After the deal, Antero Midstream increased its 2024 adjusted EBITDA guidance by $15 million to between $1.035 billion and $1.075 billion.
Recommended Reading
Seatrium Awarded Contract for FPSO Bound for Guyana’s Stabroek
2024-05-17 - The topsides fabrication and integration contract will be for the FPSO Jaguar, bound for the Whiptail Field in the Stabroek block offshore Guyana for Exxon Mobil.
Third Suriname Find for Petronas, Exxon Could Support 100,000 bbl/d FPSO
2024-05-17 - A recent find offshore Suriname in Block 52 by Petronas and Exxon Mobil could support a 100,000 bbl/d FPSO development, according to Wood Mackenzie.
US Drillers Add Oil, Gas Rigs for First Time in Four Weeks: Baker Hughes
2024-05-17 - The oil and gas rig count rose by one to 604 in the week to May 17.
BPX Looks to Ramp US Production Over 60% by 2030
2024-05-16 - BPX Energy is looking to boost its U.S. production over 60% by 2030 as it considers bringing online a fourth processing facility in the Permian by mid-year 2025, Clark Edwards, the company’s vice president of development, said during SUPER DUG in Fort Worth.
Empire Petroleum’s Williston Drilling Program Identifies New Zones
2024-05-16 - Empire Petroleum provided updates on its Williston Basin development drilling program in its first quarter 2024 earnings results.