Gulfport Energy Corp. (NASDAQ: GPOR) said April 26 it agreed to sell Utica midstream assets to an affiliate of EQT Corp. (NYSE: EQT) for $175 million cash.
As part of an agreement with EQT Midstream Partners LP (NYSE: EQM), Gulfport will sell its 25% interest in Strike Force Midstream LLC, a midstream joint venture between Gulfport and EQT.
Strike Force Midstream consists of natural gas gathering assets to support dry gas Utica Shale development in Belmont and Monroe counties, Ohio. The system gathered roughly 900 million cubic feet per day of volume during first-quarter 2018, according to the company press release.
As of March 31, net of distributions and including the contribution of an 11 mile-long, 12-inch diameter gathering line in 2016 valued at $22.5 million, Gulfport has invested $78.9 million in Strike Force Midstream.
Upon completion of the transaction, Gulfport anticipates its capital obligations associated with Strike Force Midstream during 2018 will be eliminated. The company now forecasts its non-D&C capex for full-year 2018 to be reduced by about $20 million from its previously provided guidance.
No impact to Gulfport’s midstream gathering and processing expense is expected as a result of this transaction, which the company anticipates closing on May 1.
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