HomeNewsSummit Midstream Acquires Moonrise Midstream in $90 Million Deal, Expands DJ Basin Footprint

Summit Midstream Acquires Moonrise Midstream in $90 Million Deal, Expands DJ Basin Footprint

3/10/2025

(P&GJ) — Summit Midstream Corp. has acquired Moonrise Midstream, LLC from Fundare Resources Company Holdco, LLC for $90 million, including $70 million in cash and $20 million in SMC equity. The deal expands Summit’s gathering and processing operations in the DJ Basin and is part of its ongoing corporate consolidation strategy.

Key Acquisition Details:

  • Adds 80 miles of natural gas gathering pipelines and 25 miles of crude oil gathering pipelines.
  • Increases processing capacity by 65 MMcf/d, with potential expansion to 100 MMcf/d.
  • Enhances flow assurance and supports future production growth in the DJ Basin.
  • Acquisition valued at 5.0x 2024 Adjusted EBITDA with leverage-neutral cash consideration of $70 million.
  • Strengthens commercial and operational synergies in the region.

“We are pleased to complete this strategic bolt-on acquisition, which enhances our DJ Basin position and provides additional processing capacity,” Heath Deneke, Summit’s President and CEO, said. “Following our acquisitions of the Outrigger and Sterling systems in 2022, we’ve seen strong volume growth. However, limited available system capacity has led some customers to delay development behind our system in 2025. Moonrise’s additional processing capacity will help alleviate constraints and support increased activity in 2026 and beyond.”

Summit is already connected to the Moonrise system through multiple interconnections and expects to capture operational efficiencies. The expanded footprint will relieve pipeline constraints in the northern DJ Basin, improve system reliability, and optimize natural gas liquids (NGL) recoveries.

Summit is acquiring 100% of Moonrise Midstream for $70 million in cash, financed through its credit facility, and 0.5 million shares of SMC Class A common stock.

Moonrise Midstream Assets

Located in Weld County, Colorado, Moonrise includes:

  • A 65 MMcf/d natural gas processing plant.
  • 80 miles of low-pressure natural gas gathering lines.
  • 22,300 horsepower of compression.
  • 25 miles of crude oil gathering pipelines.

Moonrise operates under long-term, fee-based contracts, with 50% of dedicated volumes under life-of-lease agreements and the remaining contracts averaging over 13 years. The system serves 60,000 leased acres in the DJ Basin, with key customers including Fundare Resources, Verdad, Bison IV, and a major integrated energy company.

The system delivers residue gas to Trailblazer/Rockies Express Pipeline, NGLs to Overland Pass Pipeline, and crude oil to Pony Express Pipeline.

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