Headquartered in Houston, Texas, Summit Midstream Partners, LP (NYSE: SMLP) is a value-driven master 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.
We currently operate natural gas, crude oil and produced water gathering systems in five unconventional resource basins:
the Appalachian Basin, which includes the Marcellus and Utica shale formations in West Virginia and Ohio;
the Williston Basin in North Dakota, which includes the Bakken and Three Forks shale formations;
the Denver-Julesburg Basin, which includes the Niobrara and Codell shale formations in Colorado and Wyoming;
the Fort Worth Basin in Texas, which includes the Barnett Shale formation; and
the Piceance Basin in Colorado, which includes the liquids-rich Mesaverde formation as well as the emerging Mancos and Niobrara Shale formations.
Our systems and the basins they serve are as follows:
the Mountaineer Midstream system, which serves the Appalachian Basin;
the Bison Midstream system, which serves the Williston Basin;
the Polar & Divide system, which serves the Williston Basin;
the DFW Midstream system, which serves the Fort Worth Basin;
the Grand River system, which serves the Piceance Basin;
the Summit Utica system, which serves the Appalachian Basin; and
the Niobrara G&P system, which serves the DJ Basin.
SMLP has an equity investment in and operates Double E Pipeline, LLC, which is natural gas transmission infrastructure that provides 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.
We generate a substantial majority of our revenue under primarily long-term and fee-based gathering agreements with our customers. The majority of our gathering agreements are underpinned by areas of mutual interest (“AMIs”) and minimum volume commitments (“MVCs”). Our AMIs provide that any production drilled by our customers within the AMIs will be shipped on our gathering systems. The MVCs are designed to ensure that we will generate a minimum amount of gathering revenue over the life of each respective gathering agreement. The fee-based nature of the majority of the gathering agreements enhances the stability of our cash flows and limits our direct commodity price exposure.
Since our formation in 2009, our management team has established a track record of executing this strategy through the acquisition and subsequent development of DFW Midstream, Grand River, Bison Midstream, Polar & Divide, Mountaineer Midstream, Summit Utica, Niobrara G&P, and Double E Pipeline.
