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Summit Midstream Reports $55.6 Distributable CashFlow; Barnett, Utica Updates

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Summit Midstream Partners reported its third quarter results.

Adjusted EBITDA totaled $76.5 million and distributable cash flow totaled $55.6 million for the third quarter of 2016 compared to $43.5 million and $26.6 million, respectively, for the prior-year period.

We are also encouraged by the recent trend of upstream M&A that is occurring across several of our operating assets.  During the third quarter, TOTAL S.A. announced its intention to acquire Chesapeake Energy’s Barnett acreage.  We are excited to have a new, well-capitalized customer anchor this system.  We expect that this trend will lead to an increased level of drilling and completion activity.

Utica Shale

The Utica Shale reportable segment includes our ownership interest in Ohio Gathering, a natural gas gathering system in service and under development spanning the condensate, liquids-rich and dry gas windows of the Utica Shale in Harrison, Guernsey, Noble, Belmont and Monroe counties in southeastern Ohio.  Segment adjusted EBITDA for the Utica Shale includes our proportional share of adjusted EBITDA from Ohio Gathering, based on a one-month lag.

Williston Basin

The Bison Midstream, Polar and Divide, and Tioga Midstream systems provide our midstream services for the Williston Basin reportable segment.  Bison Midstream gathers associated natural gas from pad sites located in Mountrail and Burke counties in North Dakota and delivers to third-party pipelines serving a third-party processing plant in Channahon, Illinois.  The Polar and Divide system gathers crude oil from pad sites located in Williams and Divide counties in North Dakota and delivers to the COLT and Basin Transload rail terminals, as well as third-party pipeline infrastructure.

Piceance/DJ Basins

The Grand River and the Niobrara Gathering & Processing systems provide our midstream services for the Piceance/DJ Basins reportable segment.  These systems provide natural gas gathering and processing services for producers operating in the Piceance Basin located in western Colorado and eastern Utah and in the Denver–Julesburg (“DJ”) Basin located in northeastern Colorado