SMLP closes Red Rock drop-down acquisition

Summit Midstream Partners LP

Summit Midstream Partners LP (NYSE: SMLP) reports that its wholly owned subsidiary, Grand River Gathering LLC, has closed its acquisition of Red Rock Gathering Co. LLC from a subsidiary of Summit Midstream Partners LLC (Summit Investments) for a total cash consideration of $305 million. 

The Red Rock drop-down transaction was financed with the net proceeds from SMLP's primary equity offering of 5.3 million common units and borrowings under SMLP's revolving credit facility. 

Red Rock is a natural gas gathering and processing system located in the Piceance Basin in western Colorado and eastern Utah with 1,480 miles of low-pressure and high-pressure pipeline, 54,000 horsepower of compression, and two processing plants with 50 MMcf/d of processing capacity. The Red Rock system gathers and processes natural gas, primarily under fee-based contracts, for more than 55 producer customers. 

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