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
Quantum Capital’s View on AI: Lots of Benefits, Pain Points
2024-05-16 - The energy industry is lagging in the race to implement AI, but Sebastian Gass, CTO of Quantum Capital Group, offered a few solutions during Hart Energy’s 2024 SUPER DUG Conference & Expo.
Aramco Credits Adaptability, Collaboration for Driving Innovation
2024-05-15 - Aramco’s implementation of different approaches has led to the creation and commercialization of newer products, said Max Deffenbaugh, principal scientist for Aramco, at the 2024 Offshore Technology Conference in Houston.
OTC: E&Ps Improving Operational Safety with Digitization
2024-05-13 - Artificial intelligence and the digitization of the oilfield have allowed for several improvements in keeping operators out of harm’s way, panelists said during the 2024 Offshore Technology Conference.
Exclusive: Cost-effective Benefits of Extracting from Mature Assets
2024-05-13 - Baker Hughes' well abandonment leader Bart Joppe details the importance of extracting resources from mature assets and the company's approach to managing a well, in this Hart Energy Exclusive interview.
TGS Starts Up Multiclient Wind, Metaocean North Sea Campaign
2024-05-07 - TGS is utilizing two laser imaging and ranging buoys to receive detailed wind measurements and metaocean data, with the goal of supporting decision-making in wind lease rounds in the German Bright.