Summit Midstream Corp. (Summit) has completed its acquisition of Tall Oak Midstream Operating LLC (Tall Oak). The acquisition expands Summit’s operations to the Arkoma Basin, adding 440 MMcf/d (12.4 x 106 m3/d) of processing capacity, more than 400 miles (643 km) of pipelines, and more than 300,000 dedicated acres (121,406 ha) with significant undeveloped locations. The deal also increases Summit’s exposure to natural gas-oriented drilling with access to premium downstream markets with ability to take advantage of growing Gulf Coast gas demand from liquefied natural gas (LNG), Mexican exports, and power generation.
Tall Oak assets, located in central Oklahoma, are comprised of two 220 MMcf/d (6.2 x106 m3/d) natural gas processing plants, approximately 244 miles (392 km) of low-pressure natural gas gathering lines, approximately 167 miles (268 km) of high-pressure natural gas gathering lines and approximately 65,000 hp (48,490 kW) of field and plant compression. The gathering agreements for the Tall Oak system include long-term, fee-based contracts with a weighted average term of approximately 13 years. Volume throughput on the Tall Oak system is underpinned by acreage dedications, with an estimated 315,000 leased acres from its key customers. The dedicated acreage spans productive, rich gas areas within the Arkoma Basin, with producers primarily targeting the Woodford formation.
