SMLP - Summit Midstream to buy DJ Basin assets for $305M

Summit Midstream Partners ( NYSE: SMLP ) said Monday it agreed to acquire Outrigger DJ Midstream and the operating subsidiaries of Sterling Energy Investments for a combined $305M in cash.

Summit ( SMLP ) said the deals will triple its DJ Basin gas processing capacity and add 505K leased acres under dedication in Weld County, Colo., with more than 675 active permits and 1,200 remaining locations with estimated crude oil breakevens as low as $35/bbl.

The partnership said it continues to expect to come in at the high end of previously announced FY 2022 adjusted EBITDA guidance of $205M-$220M.

With the addition of Outrigger DJ and Sterling DJ, Summit ( SMLP ) sees FY 2023 adjusted EBITDA reaching at least $300M, resulting in total leverage of ~4.25x at year-end 2023 and below 3.5x in 2024.

Last month, Summit ( SMLP ) closed the $40M sale of the Bison Midstream gas gathering system in North Dakota .

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