Summit Midstream (SMC), a US-based energy company, has announced the acquisition of Moonrise Midstream from Fundare Resources Company Holdco, an exploration and production company, for a total consideration of $90m.
The transaction was executed through SMC subsidiary Summit Midstream Holdings and marks an expansion of the company’s gathering and processing footprint in the DJ Basin.
The deal’s total consideration of $90m includes $70m in cash and $20m in SMC equity.
Moonrise Midstream’s assets are located in Weld County, Colorado, and include a 65 million cubic feet per day (mcf/d) natural gas processing plant, expandable to 100mcf/d.
They also comprise approximately 80 miles of low-pressure natural gas gathering lines, 22,300hp of compression and approximately 25 miles of crude oil gathering pipelines.
Summit Midstream president, chief executive officer and chairman Heath Deneke said: “We are pleased to announce the successful completion of this strategic bolt-on acquisition that further enhances our position in the DJ Basin. This acquisition not only expands our footprint and dedicated acreage in one of the most active areas of the DJ Basin but also provides incremental processing capacity that we expect to utilise in the coming years as volumes behind our legacy systems continue to grow.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“Following the acquisitions of the Outrigger and Sterling systems in December 2022, we have experienced significant volume growth behind our integrated DJ gathering and processing system and certain areas of our system are nearing full utilisation. As a result of the limited available system capacity, some of our customers have deferred development activity behind our system in 2025.”
The acquisition is expected to boost the company’s processing capacity, redundancy and flow assurance while supporting expected volume growth cost-effectively.
The deal also enhances synergies, unlocking commercial opportunities, and strengthens Summit’s in-basin consolidation strategy.
In March 2024, Summit Midstream Partners, a subsidiary of Summit Midstream, announced plans to sell its Utica shale assets to midstream company MPLX for $625m in cash.
