Summit Midstream Corporation completes acquisition of Tall Oak Midstream III
Published by Alfred Hamer,
Editorial Assistant
World Pipelines,
Summit Midstream Corporation has announced that it and its wholly owned subsidiary, Summit Midstream Partners, LP, received shareholder approval and has completed the previously announced acquisition of Tall Oak Midstream Operating, LLC and its subsidiaries from an affiliate of Tailwater Capital LLC for US$155 million of cash, 7.5 million common units of the Partnership and associated 7.5 million shares of SMC Class B Common Stock, and up to US$25 million contingent consideration in cash over certain measurement periods through 31 March 2026.
This strategic acquisition marks a significant milestone in Summit's growth strategy, rebalancing its portfolio to approximately 50% natural gas-oriented drilling activities and increasing scale in a credit and value accretive manner. Pro forma for the transaction, SMC's total leverage ratio, as of 30 September 2024, is approximately 3.8x.
On 29 November 2024, SMC held a virtual special meeting of its stockholders via live audio webcast to vote on the proposed equity to be issued for the acquisition.
Approximately 76.7% of the shares of common stock entitled to vote as of the record date for the Special Meeting were represented in person or by proxy at the Special Meeting, and approximately 99.8% of the total votes cast were in favour of the proposal.
Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/03122024/summit-midstream-corporation-completes-acquisition-of-tall-oak-midstream-iii/
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