By Kristin Jones
Summit Midstream Partners L.P. filed plans for an initial public
offering, as the gas pipeline operator seeks to raise as much as
$301.9 million.
Summit Midstream is a limited partnership that owns and operates
natural gas pipelines and compression systems in North American
shale formations. It currently operates in the Piceance Basin in
western Colorado, and the Fort Worth Basin, including the Barnett
Shale formation in north-central Texas.
In the first half of 2012, the company's systems gathered around
909 million cubic feet a day of natural gas, with around 64%
containing higher-priced gas liquids. Its customers include major
gas producers like Encana Corp. (ECA) and Chesapeake Energy Corp.
(CHK).
The company, formed in 2009 by a management team and private
equity firm Energy Capital Partners, intends to grow through
further use and development of existing assets, partnerships with
large producers, and acquisitions.
In the six months ended June 30, the company reported a profit
of $16.7 million, down from $17.9 million in the year-earlier
period. Revenue during the period was $75.9 million, up 81% from a
year ago. The bulk of revenue was from gas-gathering services and
other fees.
The company's current owners include Energy Capital Partners and
GE Energy Financial Services.
Summit Midstream intends to list on the New York Stock Exchange
under the symbol "SMLP."
Write to Kristin Jones at kristin.jones@dowjones.com
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