Summit Midstream Partners Files Plan for IPO

   By Kristin Jones 
 

Summit Midstream Partners L.P. filed plans for an initial public offering, as the gas pipeline operator seeks to raise as much as $301.9 million.

Summit Midstream is a limited partnership that owns and operates natural gas pipelines and compression systems in North American shale formations. It currently operates in the Piceance Basin in western Colorado, and the Fort Worth Basin, including the Barnett Shale formation in north-central Texas.

In the first half of 2012, the company's systems gathered around 909 million cubic feet a day of natural gas, with around 64% containing higher-priced gas liquids. Its customers include major gas producers like Encana Corp. (ECA) and Chesapeake Energy Corp. (CHK).

The company, formed in 2009 by a management team and private equity firm Energy Capital Partners, intends to grow through further use and development of existing assets, partnerships with large producers, and acquisitions.

In the six months ended June 30, the company reported a profit of $16.7 million, down from $17.9 million in the year-earlier period. Revenue during the period was $75.9 million, up 81% from a year ago. The bulk of revenue was from gas-gathering services and other fees.

The company's current owners include Energy Capital Partners and GE Energy Financial Services.

Summit Midstream intends to list on the New York Stock Exchange under the symbol "SMLP."

Write to Kristin Jones at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires