Core Insights - Summit Midstream Corporation (SMC) experienced a double-digit increase in its share price following Q3 earnings, contributing to its outperformance in the market since the last recommendation [1] Company Performance - The increase in SMC's share price has been significant enough to enhance its market capitalization [1] Investment Strategy - The Value Portfolio focuses on building retirement portfolios through a fact-based research strategy, which includes thorough analysis of 10Ks, analyst commentary, market reports, and investor presentations [1]

Core Points - The conference call is for Summit Midstream Corporation's Third Quarter 2025 earnings results [1] - Key executives present include Randall Burton (VP, Finance and Treasurer), Heath Deneke (President, CEO, and Chairman), and Bill Mault (CFO) [2] Financial and Operational Results - The earnings release can be accessed on the company's website under the Events and Presentations or Quarterly Results sections [2] - The discussion may include forward-looking statements regarding future volumes, operating expenses, capital expenditures, cash flow, liquidity, and business strategy [3] - The company emphasizes that while expectations in forward-looking statements are deemed reasonable, there is no assurance they will be accurate [3]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was $65.5 million, representing a more than 7% increase from Q2 2025, with a run rate EBITDA of approximately $260 million [5] - Distributable cash flow generated during the quarter was $36.7 million, and free cash flow was $16.7 million [5] - Capital expenditures for the quarter totaled $22.9 million, with year-to-date capital expenditures including approximately $14 million for non-recurring projects [9] Business Line Data and Key Metrics Changes - The Rockies segment generated adjusted EBITDA of $29 million, an increase of $3.8 million from Q2 2025, driven by increased fixed fee revenue and improved product margin [10] - The Permian Basin segment reported adjusted EBITDA of $8.7 million, an increase of $0.4 million, primarily due to higher volume throughput [12] - The Piceance segment reported adjusted EBITDA of $12.5 million, an increase of $2 million, primarily due to realization of previously deferred revenue [13] - The Midtown segment reported adjusted EBITDA of $23.6 million, a decrease of $1.3 million, primarily due to lower product margin [14] Market Data and Key Metrics Changes - Natural gas volume throughput averaged 158 million cubic feet per day, a 7.5% increase from Q2 2025 [11] - Liquids volumes averaged 72,000 barrels per day, a decrease of 6,000 barrels per day compared to Q2 2025 [11] - Double E Pipeline averaged 712 million cubic feet per day of throughput, with an average of 745 million cubic feet per day in September [12] Company Strategy and Development Direction - The company expects to connect an additional 50 wells in Q4 2025, aiming to end the year around the midpoint of the original well connect guidance range of 125-185 wells [6] - The company is working with several customers on their 2026 development plans, which include over 120 new well connects in the first half of 2026 [6] - The company plans to release full-year 2026 financial guidance during the Q4 earnings release [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about customer engagement and visibility into next year's programs, indicating strong expected activity in Q4 2025 and the first half of 2026 [6][16] - The company noted that while financial results are expected to trend towards the low end of guidance due to well connect delays, these delays are anticipated to be short-lived [6] Other Important Information - The company had net debt of approximately $950 million, with available borrowing capacity totaling $349 million at the end of Q3 2025 [9] - The company is actively relocating compressors to mitigate lease expenses and improve EBITDA margins starting in 2026 [9] Q&A Session Summary - No specific questions or answers were documented in the provided content, as the call concluded without a Q&A session [17]

Financial Performance - Net income for Q3 2025 was $5,000, compared to a net loss of $197,541 in Q3 2024, indicating a significant recovery [154]. - Total revenues increased by $44.5 million to $146.9 million for the three months ended September 30, 2025, compared to the same period in 2024, driven by a $22.8 million increase in natural gas, NGLs, and condensate sales [172]. - Net income for the three months ended September 30, 2025, was $5.0 million, a significant recovery from a net loss of $197.5 million in the same period of 2024 [172]. - The company reported a net income of $5.4 million for the nine months ended September 30, 2025, with positive adjustments of $105.9 million for non-cash operating items [229]. - The company experienced a net loss of $88.4 million for the nine months ended September 30, 2024, with adjustments of $158.6 million for non-cash operating items [229]. Revenue and Sales Growth - Gathering services and related fees rose by $21.3 million for the three months ended September 30, 2025, compared to the same period in 2024, indicating strong demand for these services [176]. - The Rockies segment reported a 29% increase in total revenues to $87.1 million for the three months ended September 30, 2025, compared to $67.7 million in 2024 [189]. - Total revenues for the Piceance segment decreased by 5% to $18.641 million for the three months ended September 30, 2025, and by 13% to $54.038 million for the nine months ended September 30, 2025, compared to the same periods in 2024 [200]. - The company reported a 202% increase in gathering services and related fees for the three months ended September 30, 2025, totaling $33,548,000 compared to $11,107,000 in 2024 [205]. Capital Expenditures and Investments - Capital expenditures for Q3 2025 were $22,914, compared to $10,941 in Q3 2024, representing a year-over-year increase of 109.5% [154]. - The company categorized capital expenditures as $70.0 million for the acquisition of Moonrise and $69.9 million for other capital expenditures [231]. - Capital expenditures for the nine months ended September 30, 2025 totaled $69.9 million, including $13.3 million for maintenance capital expenditures [233]. Debt and Financial Position - As of September 30, 2025, the Company had approximately $825.0 million in fixed-rate debt and $150.0 million outstanding under its variable rate Amended and Restated ABL Facility [169]. - The Amended and Restated ABL Facility had an outstanding amount of $150.0 million and available borrowing capacity totaled $349.2 million as of September 30, 2025 [225]. - The company expects that its Amended and Restated ABL Facility and Permian Transmission Credit Facilities will be adequate to finance operations for the next twelve months [222]. - As of September 30, 2025, the First Lien Net Leverage Ratio was 0.57:1.00 and the Interest Coverage Ratio was 2.73:1.00, both well within the required limits [224]. Operational Performance - Natural gas throughput volumes increased by 258 MMcf/d for the three months ended September 30, 2025, compared to the same period in 2024, reflecting improved operational performance [173]. - Average daily throughput for the Permian segment increased by 8% to 712 MMcf/d for the three months ended September 30, 2025, and by 23% to 686 MMcf/d for the nine months ended September 30, 2025, compared to the same periods in 2024 [192]. - Average daily throughput for the Mid-Con segment increased by 99% to 508 MMcf/d for the three months ended September 30, 2025, and by 136% to 500 MMcf/d for the nine months ended September 30, 2025, compared to the same periods in 2024, attributed to the Tall Oak Acquisition and new well connections [203]. Cost Management - Total costs and expenses increased by $31.0 million to $121.7 million for the three months ended September 30, 2025, primarily due to higher operation and maintenance expenses [179]. - Operation and maintenance costs surged by 142% to $15,817,000 for the three months ended September 30, 2025, compared to $6,546,000 in the same period of 2024 [205]. - General and administrative expenses increased by 2% to $10,889,000 for the three months ended September 30, 2025, compared to $10,705,000 in 2024 [212]. Market and Economic Conditions - The Company expects natural gas prices to support continued upstream industry activity, driven by global population growth and increased U.S. LNG exports [160]. - The Company anticipates ongoing impacts from geopolitical events affecting commodity prices, including the Russia-Ukraine conflict and Middle East tensions [155]. - Inflationary pressures and rising operating costs may impact the Company's future financial performance and capital project costs [168]. Risk Management - The company manages its direct exposure to natural gas and power prices through forward power purchase contracts based on prevailing natural gas prices on the Henry Hub Index [250]. - The current commodity price risk exposure has not changed materially since December 31, 2024 [250]. - The company is exposed to risks related to government approvals, construction costs, and fluctuations in interest rates and economic conditions [248].

Financial Performance - Adjusted EBITDA for Q3 2025 increased by 7.2% quarter-over-quarter to approximately $260 million, driven by higher natural gas volumes in the Rockies region [4] - Net income for Q3 2025 was $5.0 million, with adjusted EBITDA of $65.5 million and free cash flow of $16.7 million [8] - Total revenues for Q3 2025 reached $146.883 million, a 43.4% increase from $102.415 million in Q3 2024 [37] - Net income for Q3 2025 was $5.000 million, compared to a net loss of $197.541 million in Q3 2024 [40] - Adjusted EBITDA for Q3 2025 was $65.498 million, up 44.7% from $45.238 million in Q3 2024 [41] - Cash flow available for distributions in Q3 2025 was $36.686 million, a 66.5% increase from $22.091 million in Q3 2024 [41] - Free cash flow for Q3 2025 was $16.716 million, an increase of 73.0% from $9.663 million in Q3 2024 [41] - Total costs and expenses for Q3 2025 were $121.720 million, a 34.2% increase from $90.766 million in Q3 2024 [37] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $79,920,000, compared to $40,124,000 in 2024, reflecting a significant increase of 99% [43] - Adjusted EBITDA for the nine months ended September 30, 2025, was $184,098,000, up from $158,445,000 in 2024, representing a growth of 16% [43] - Free Cash Flow for the nine months ended September 30, 2025, was $37,292,000, compared to $29,751,000 in 2024, indicating an increase of 25% [43] - Cash flow available for distributions (Distributable Cash Flow) for the nine months ended September 30, 2025, was $102,571,000, compared to $66,509,000 in 2024, showing a rise of 54% [43] Operational Highlights - Average daily natural gas throughput rose by 1.4% to 925 MMcf/d, while liquids volumes decreased by 7.7% to 72 Mbbl/d compared to Q2 2025 [6] - The company connected 21 wells in Q3 2025, maintaining an active customer base with five drilling rigs and over 90 DUCs behind its systems [8] - The Double E Pipeline transported an average of 712 MMcf/d, contributing $8.7 million in adjusted EBITDA for the quarter [6] - The company anticipates connecting approximately 50 wells in Q4 2025, with a total of 109 wells connected year-to-date [8] - More than 120 new well connects are expected in the first half of 2026 as the company collaborates with customers on their development programs [5] Capital Expenditures and Financial Position - Capital expenditures for Q3 2025 totaled $22.9 million, including $5.3 million for maintenance [13] - Cash and cash equivalents increased to $24,632,000 as of September 30, 2025, compared to $22,822,000 at the end of 2024 [36] - Total assets as of September 30, 2025, were $2,413,514,000, up from $2,359,484,000 at the end of 2024 [36] - Total liabilities increased to $1,316,468,000 as of September 30, 2025, compared to $1,261,413,000 at the end of 2024 [36] - Capital expenditures for Q3 2025 totaled $22.914 million, compared to $10.941 million in Q3 2024, reflecting a 109.5% increase [40] - Maintenance capital expenditures increased to $13,332,000 in 2025 from $7,419,000 in 2024, reflecting an increase of 80% [43] - Growth capital expenditures rose to $56,578,000 in 2025, compared to $30,442,000 in 2024, marking an increase of 86% [43] Debt and Leverage - SMC reported a total leverage ratio of approximately 4.2x, including potential earnout liability from the Tall Oak Acquisition [16] - Interest expense, excluding amortization of debt issuance costs, decreased from $84,689,000 in 2024 to $67,587,000 in 2025, a reduction of 20% [43] Dividend Information - The company continues to suspend cash dividends on its common stock for the period ended September 30, 2025 [21] - The next cash dividend on the Series A Preferred stock will be paid on December 14, 2025, to shareholders of record as of December 1, 2025 [21] - The board of directors reinstated cash dividends on Series A Preferred Stock beginning March 14, 2025 [39] Events and Conferences - Summit Midstream Corporation will host a conference call on November 11, 2025, to discuss its quarterly operating and financial results [22] - Summit Midstream Corporation will participate in the 2025 Bank of America Leverage Finance Conference on December 2-3, 2025 [24] Other Financial Adjustments - For the three months ended September 30, 2025, total MVC shortfall payment adjustments amounted to $4,194,000 [20] - For the nine months ended September 30, 2025, total MVC shortfall payment adjustments were $13,219,000, with a net impact of $13,210,000 [20] - The company recorded $9.7 million in transaction and other costs for the nine months ended September 30, 2025, compared to $13.2 million in 2024 [43] - The divestiture of Ohio Gathering occurred in March 2024, impacting the proportional adjusted EBITDA calculations for the reporting period [43] - The company’s financial results from its investment in Ohio Gathering are based on a one-month lag, affecting the reported figures [43]

Core Insights - Summit Midstream Corporation reported solid growth in Q3 2025, with adjusted EBITDA increasing by 7.2% to approximately $260 million, driven by higher natural gas volumes in the Rockies region [3][9] - The company anticipates finishing the year near the low end of its adjusted EBITDA guidance range of $245 million to $280 million, primarily due to timing delays in customer activity [4] - The company is optimistic about customer engagement and expects over 120 new well connections in the first half of 2026 [4] Financial Performance - Q3 2025 net income was $5.0 million, with adjusted EBITDA of $65.5 million and free cash flow of $16.7 million [9][36] - Average daily natural gas throughput increased by 1.4% to 925 MMcf/d, while liquids volumes decreased by 7.7% to 72 Mbbl/d compared to Q2 2025 [5][36] - The Double E pipeline transported an average of 712 MMcf/d, contributing $8.7 million in adjusted EBITDA for the quarter [5][9] Segment Performance - Natural gas price-driven segments generated $36.1 million in combined adjusted EBITDA, a 2.0% increase from Q2 2025 [10] - Oil price-driven segments generated $37.7 million in combined adjusted EBITDA, representing a 12.3% increase from Q2 2025 [10] - The Rockies segment adjusted EBITDA increased by $3.8 million, driven by higher natural gas volume throughput and improved product margins [10] Capital Expenditures - Capital expenditures totaled $22.9 million in Q3 2025, primarily related to pad connections in the Rockies and Mid-Con segments [16] - Year-to-date capital expenditures include $9.5 million for Tall Oak Integration and compressor relocation projects [16] Liquidity and Capital Structure - As of September 30, 2025, the company had $24.6 million in unrestricted cash and $150 million drawn under its $500 million ABL Revolver [19] - The total leverage ratio was approximately 4.2x, including potential earnout liability from the Tall Oak Acquisition [19] Future Outlook - The company expects to connect approximately 50 wells in Q4 2025 and is working closely with customers on their 2026 development programs [4][9] - An update on activity levels and full-year 2026 financial guidance will be provided in the Q4 earnings release in March 2026 [4]

Core Viewpoint - Summit Midstream Corporation (SMC) is set to report its third quarter 2025 operating and financial results on November 10, 2025, after market close [1] Financial Reporting - SMC will host a conference call on November 11, 2025, at 10:00 a.m. Eastern to discuss its quarterly results, accessible via teleconference [2] - Participants are encouraged to join 10 minutes early and can access the call through SMC's website [2] Upcoming Events - SMC's senior management will attend the 2025 Bank of America Leverage Finance Conference on December 2-3, 2025, and the 2025 Wells Fargo Energy & Power Symposium on December 9-10, 2025 [3] - Presentation materials for these events will be available on SMC's website prior to the conferences [3] Company Overview - SMC focuses on developing, owning, and operating midstream energy infrastructure assets in key unconventional resource basins in the U.S. [4] - The company provides gathering, processing, and transportation services for natural gas, crude oil, and produced water under long-term, fee-based agreements [4] - SMC operates in five major basins: Williston, Denver-Julesburg, Fort Worth, Arkoma, and Piceance [4] - The company has an equity investment in Double E Pipeline, LLC, which offers interstate natural gas transportation services [4] - SMC is headquartered in Houston, Texas [4]

Company Overview - Summit Midstream Corporation (NYSE: SMC) has experienced a challenging year, with its stock declining nearly 50% [2] - The company is facing chronic underutilization of its assets despite a significant demand for natural gas [2] Investment Strategy - The Value Portfolio focuses on constructing retirement portfolios using a fact-based research strategy, which includes thorough analysis of 10Ks, analyst commentary, market reports, and investor presentations [2]

Group 1 - Summit Midstream (NYSE: SMC) has undergone a complete reorganization, but the market remains skeptical and requires proof of this change for a positive response [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, necessitating patience and experience for successful investment [2] Group 2 - The analysis provided in the Oil & Gas Value Research service focuses on identifying undervalued companies within the oil and gas sector, examining their balance sheets, competitive positions, and development prospects [1]

Company Overview - Future Mineral Resources Inc. has changed its name from Sulliden Mining Capital Inc. and will implement a share consolidation of one post-Consolidation Share for every 10 pre-Consolidation Shares effective September 5, 2025 [1][2] - The company currently has 166,875,979 Shares issued and outstanding, which will reduce to approximately 16,687,597 Shares post-Consolidation [2] Share Consolidation Details - No fractional Shares will be issued; any fractional Shares will be disregarded and cancelled without compensation [2] - The exercise or conversion price and the number of Shares issuable under any outstanding convertible securities will be proportionately adjusted upon completion of the Consolidation [2] - Trading of the Company's shares under the new name and ticker "FMR" is expected to commence on or about September 9, 2025, subject to approval from the Toronto Stock Exchange [3] Financial Restructuring - The company has strengthened its balance sheet by entering into four shares for debt agreements, closing on July 29, 2025, with 2227929 Ontario Inc. and three other private companies [4] - An aggregate of 12 million and 24.3 million Shares were issued on a pre-Consolidation basis at a deemed price of approximately $0.05 per share, in payment of approximately $696,234 and $1,242,334 of outstanding indebtedness [5] - The Common Shares issued are subject to a hold period of four months and one day, ending on January 3, 2026 [6] Related Party Transactions - The transaction with 2227929 Ontario Inc., controlled by a director and officer of the company, is classified as a "related party transaction" under Multilateral Instrument 61-101 [7] - The company expects to rely on exemptions from formal valuation and minority shareholder approval requirements for this related party transaction [7] Company Focus - Future Mineral is focused on acquiring and advancing brownfield, development-stage, and early production-stage mining projects across the Americas, Australia, Africa, and Europe [8]