Summit Midstream Corp. announced that its wholly owned subsidiary, Summit Midstream Holdings, has acquired Moonrise Midstream LLC from Fundare Resources Co. Holdco for $90 million.
The total includes $70 million in cash and $20 million in Summit Midstream Corp. equity. Summit also provided an operational update for its broader DJ Basin position.
"We are pleased to announce the successful completion of this strategic bolt-on acquisition that further enhances our position in the DJ Basin," said Heath Deneke, Summit's president, CEO and chairman. "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 utilize in the coming years as volumes behind our legacy systems continue to grow."
Deneke said the company has seen significant volume growth behind its integrated DJ gathering and processing system since acquiring the Outrigger and Sterling systems in December 2022. He noted that some areas of the system are nearing full utilization.
Summit Midstream announces the acquisition of Moonrise Midstream
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"As a result of the limited available system capacity, some of our customers have deferred development activity behind our system in 2025," Deneke said. "There are currently three rigs running behind our dedicated acreage position in the DJ, and two of our key customers have sizeable multi-year development plans beginning in 2026."
He said the Moonrise system adds 65 million cubic feet per day of processing capacity, with about half expected to be available to relieve system constraints and enable further growth in 2026 and beyond.
"Summit is already operationally connected to the Moonrise system through multiple existing interconnections, and we expect to capture significant operational and commercial synergies with the combined systems," Deneke said. "The expanded pipeline footprint will alleviate localized pipeline constraints on the northern end of our system and enable Summit to optimize capital expenditures as development shifts further north."
He added that the additional and expandable processing capacity at Moonrise will improve plant operating margins, reduce reliance on third-party offloads and enhance overall system reliability and flow assurance.
"We remain extremely excited about the long-term opportunities in the DJ Basin as our customers continue to execute their development programs," Deneke said, citing more than 800 dedicated undeveloped locations and sizable acreage positions in the area. "Summit is very well-positioned to serve with the combined systems."
