Core Viewpoint - Summit Midstream Corporation has successfully acquired Moonrise Midstream, enhancing its operational capacity and footprint in the DJ Basin for a total consideration of $90 million, which includes $70 million in cash and $20 million in equity [1][4]. Acquisition Details - The acquisition includes 100% of the membership interest in Moonrise Midstream, financed through Summit's credit facility, with a total cash consideration of $70 million and approximately 0.5 million shares of SMC Class A common stock [4]. - The transaction represents a value-accretive acquisition multiple of approximately 5.0x 2024 Adjusted EBITDA, with the cash component being leverage-neutral at approximately 3.9x 2024 Adjusted EBITDA [6]. Operational Impact - The acquisition adds 65 MMcf/d of processing capacity, which is expected to alleviate constraints in Summit's integrated DJ system and support customer volume growth in 2026 and beyond [2][3]. - Summit is already operationally connected to the Moonrise system, allowing for significant operational and commercial synergies, optimizing capital expenditures, and improving plant operating margins [3][6]. Strategic Positioning - The Moonrise assets include approximately 80 miles of natural gas gathering pipeline and 25 miles of crude oil gathering pipeline, providing additional processing capacity and redundancy for Summit's customers [6][7]. - The acquisition aligns with Summit's corporate consolidation strategy, building scale through strategic, bolt-on acquisitions in key basins to drive additional value [6]. Market Outlook - Summit is well-positioned in the DJ Basin, with over 800 dedicated undeveloped locations and significant acreage, as customers continue to execute their development programs [4].
Summit Midstream Corporation Announces the Acquisition of Moonrise Midstream and Provides DJ Basin Operational Update