HOUSTON, March 8, 2021 /PRNewswire/ -- Summit
Midstream Partners, LP (NYSE: SMLP) announced today that its
wholly-owned, indirect subsidiary, Summit Permian Transmission,
LLC, has closed on its previously announced $175 million of senior secured credit facilities
(the "Credit Facilities") which will be used to finance the
development of the Double E Pipeline Project ("Double E"), in which
it owns a 70% interest. SMLP expects to fund all of its
estimated $150 million Double E
investment in 2021 with the Credit Facilities, which include a
delayed draw feature. SMLP continues to expect that Double E will
be completed at or below the current $425
million capital budget, of which, approximately $35 million remains in unidentified project
contingency. In conjunction with closing of the Credit
Facilities, SMLP also posted a $16
million letter of credit under its corporate revolving
credit facility to support back-end equity contributions, which may
not be needed if unidentified project contingency is not fully
utilized. To the extent additional equity funding is needed, it is
not expected to fund until 2022, following the in-service date of
Double E in the fourth quarter of 2021.
About Summit Midstream Partners, LP
SMLP is a
value-driven limited partnership focused on developing, owning and
operating midstream energy infrastructure assets that are
strategically located in unconventional resource basins, primarily
shale formations, in the continental United States. SMLP
provides natural gas, crude oil and produced water gathering
services pursuant to primarily long-term and fee-based gathering
and processing agreements with customers and counterparties in six
unconventional resource basins: (i) the Appalachian Basin, which
includes the Utica and Marcellus
shale formations in Ohio and
West Virginia; (ii) the
Williston Basin, which includes
the Bakken and Three Forks shale formations in North Dakota; (iii) the Denver-Julesburg
Basin, which includes the Niobrara
and Codell shale formations in Colorado and Wyoming; (iv) the Permian Basin, which
includes the Bone Spring and Wolfcamp formations in New Mexico; (v) the Fort Worth Basin, which includes the Barnett
Shale formation in Texas; and (vi)
the Piceance Basin, which includes the Mesaverde formation as well
as the Mancos and Niobrara shale formations in Colorado.
SMLP has an equity investment in Double E Pipeline, LLC, which is
developing natural gas transmission infrastructure that will
provide transportation service from multiple receipt points in the
Delaware Basin to various delivery
points in and around the Waha Hub in Texas. SMLP also has an
equity investment in Ohio Gathering, which operates extensive
natural gas gathering and condensate stabilization infrastructure
in the Utica Shale in Ohio. SMLP is headquartered in
Houston, Texas.
Forward-Looking Statements
This press release includes
certain statements concerning expectations for the future that are
forward-looking within the meaning of the federal securities
laws. Forward-looking statements contain known and unknown
risks and uncertainties (many of which are difficult to predict and
beyond management's control) that may cause SMLP's actual results
in future periods to differ materially from anticipated or
projected results. An extensive list of specific material
risks and uncertainties affecting SMLP is contained in its 2020
Annual Report on Form 10-K filed with the Securities and Exchange
Commission on March 4, 2021, and as
amended and updated from time to time. Any forward-looking
statements in this press release are made as of the date of this
press release and SMLP undertakes no obligation to update or revise
any forward-looking statements to reflect new information or
events.
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SOURCE Summit Midstream Partners, LP