Summit Midstream IPO: The midstream energy operator submitted its IPO (initial public offering) application to the U.S. SEC (Securities and Exchange Commission) on August 21, 2012. It plans to trade the common units representing limited partner interests on the New York Stock Exchange under the symbol “SMLP” and raise funds of $301.88 million at most through the sale of common units in the public offering.
Summit Midstream Partners, LP was formed in 2009 and is a midstream energy limited partnership providing fee-based natural gas gathering and compression services in two unconventional resource basins: the Piceance Basin and the Fort Worth Basin. The partnership’s customer base covers some of the largest natural gas producers in North America, such as Encana Corporation, Chesapeake Energy Corporation and so on.
For the six months ended June 30, 2012, Summit Midstream3 generated $75.9 million of revenue, $16.7 million of net income and $51.5 million of Adjusted EBITDA. For the year ended December 31, 2011, revenue, net income and Adjusted EBITDA came in at $103.6 million, $38.0 million and $56.8 million, respectively. As of June 30, 2012, Summit Midstream’s gathering systems had approximately 385 miles of pipelines and 147,600 horsepower of compression.
Summit Midstream hires Barclays Capital Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated as the representatives of the underwriters and as joint book-running managers of its public offering. Goldman, Sachs & Co. and Morgan Stanley & Co. LLC are also working as the co-managers for Summit Midstream IPO.
Net proceeds from Summit Midstream IPO is planned to be used for repaying credit facility; making a cash distribution to Summit Investments to reimburse Summit Investments for certain capital expenditures and pay estimated offering expenses.
Summit Midstream IPO