Pipeline operator Summit Midstream Partners announced on Friday plans to sell its Utica shale assets to midstream company MPLX for $625m in cash.

The sale includes the company’s 36% interest in the Ohio Gathering Company and its 38% stake in the Ohio Condensate Company, as well as its wholly owned Utica assets.

The deal is the outcome of a strategic review process undertaken by Summit’s board of directors in consultation with external advisors, the company said in a press statement. The review was first announced in October last year.

Summit’s shares jumped around 38% to $26.88, the highest mark since December 2021, as crude oil-rich basins will now account for more than half of the company’s portfolio after the sale goes through.

The Marcellus and Utica shale regions, spread across the US states of Pennsylvania, West Virginia and Ohio, have seen rig operations cut from last year as producers try to recover from decades-low prices.

Summit CEO and chairman Heath Deneke said the sale will generate “substantial value creation opportunities” for stakeholders.

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“We believe there are several value optimising strategies to pursue to further build scale, particularly in our Permian and Rockies segments… We are confident there are additional commercial opportunities, similar to the recently announced Janus Processing Plant connection, that will continue to drive incremental free cash flow and the value of the pipeline,” he added.

Summit also said the sale will help reduce debt, increase liquidity and “dramatically improve” the company’s credit profile. It is expected to add a $400m credit facility and more than $325m of unrestricted cash. It posted revised earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance for this year of $220m, up from $185.

“Its (MPLX’s) experience and likely close integration with its own MPLX assets means this is likely a plug-and-play transaction. The valuation at around eight times 2024 EBITDA looks reasonable,” Morningstar analyst Stephen Ellis told Reuters.