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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]

Core Viewpoint - Summit Midstream Corporation's stock has significantly underperformed the market following its second-quarter 2025 results, raising investor concerns about its near-term performance despite strategic initiatives in place [1] Revenue & Earnings Performance - The company reported second-quarter revenues of $140.2 million, a 38% increase from $101.3 million year-over-year, driven by stronger gathering services and commodity sales [2] - Despite revenue growth, Summit Midstream incurred a net loss of $4.2 million, an improvement from a $23.8 million loss in the previous year [2] - Loss per share was 66 cents, significantly better than the prior year's loss of $2.91 per share [2] - Adjusted EBITDA rose to $61.1 million from $43.1 million, reflecting improved system throughput and contributions from acquisitions [2] Other Key Business Metrics - Natural gas throughput increased to 912 MMcf/d from 716 MMcf/d year-over-year, while liquids throughput rose 4% to 78 Mbbl/d [3] - Mid-Con adjusted EBITDA surged to $24.9 million from $5.4 million due to stronger volumes and new well connections, while the Piceance segment declined to $10.5 million from $12.8 million due to higher costs and lower throughput [3] - The Rockies segment benefited from the Moonrise acquisition but faced challenges from weaker commodity prices, impacting realized margins [3] Management Commentary - CEO Heath Deneke noted that adjusted EBITDA was "slightly below expectations" due to timing of well completions and weaker realized commodity prices [4] - Management expressed confidence in the asset base and highlighted strategic wins, including a 10-year extension of key gathering contracts and a new agreement for 100 MMcf/d on the Double E Pipeline [4] Factors Influencing the Results - Commodity price volatility negatively impacted performance, with realized residue gas prices down about 40%, NGL prices down 10%, and condensate prices down 15% from the prior quarter [5] - Increased operating and administrative expenses, including one-time costs from the Moonrise integration, also pressured profitability [5] Guidance - The company expects 2025 adjusted EBITDA to be near the low end of its original guidance of $245-$280 million, acknowledging delays in customer development programs [7] - Capital expenditure for the second quarter was $26.4 million, primarily for Rockies and Mid-Con growth projects, with $5.5 million in maintenance spending [7] - As of June 30, 2025, liquidity remains adequate with $20.9 million in cash and $359 million of revolver availability [7] Other Developments - The successful integration of the March 2025 Moonrise Midstream acquisition, valued at approximately $90 million, into SMC's Niobrara gathering and processing system [9] - The completion of the $425-million Tall Oak transaction in December 2024, which positioned SMC for long-term growth [9] - SMC's addition to the Russell 3000, 2000, and Microcap indexes in June 2025, expected to broaden institutional ownership and improve stock liquidity [9] Summary - Summit Midstream's second quarter demonstrated strong year-over-year revenue growth and improved EBITDA, aided by acquisitions and system expansions, but faced challenges from commodity price weakness and integration costs [10] - Management is positioning the company for a stronger 2026 through ongoing contract extensions and strategic acquisitions, although near-term investor sentiment remains cautious [10]

Financial Data and Key Metrics Changes - The company reported second quarter adjusted EBITDA of $61 million, slightly below expectations due to underperformance of some wells and lower realized commodity prices [6][12] - Capital expenditures totaled $26.4 million, including approximately $5.5 million of maintenance CapEx [12] - Net debt was approximately $944 million, with available borrowing capacity of $359 million at the end of the quarter [12] Business Line Data and Key Metrics Changes - The Rockies segment generated adjusted EBITDA of $25.2 million, an increase of $400,000 from the first quarter, driven by a 5.4% increase in liquids volume throughput and a 14% increase in natural gas volume throughput [13] - The Permian Basin segment reported adjusted EBITDA of $8.3 million, a slight increase due to higher volume throughput [15] - The PON segment recorded adjusted EBITDA of $10.5 million, a decrease of $1.3 million due to higher operating expenses and a 1.1% decrease in volume throughput [15] - The Mid Con segment reported adjusted EBITDA of $24.9 million, an increase of $2.4 million due to a 2.9% increase in volume throughput [16] Market Data and Key Metrics Changes - Realized residue gas prices decreased approximately 40%, realized NGL prices decreased approximately 10%, and realized condensate prices decreased approximately 15% compared to the first quarter [13] - The company connected six new wells in the Arkoma and four new wells in the Barnett in July, indicating ongoing development activity [17] Company Strategy and Development Direction - The company executed a new ten-year extension of gathering agreements with a key customer in the Williston, increasing the weighted average contract life from four to eight years [8] - The company is preparing for a 20-well development program in the Arkoma, with completions expected to begin in the fourth quarter [9] - The company signed a new ten-year agreement for $100 million a day of firm capacity on the Double E pipeline, contingent on the customer's final investment decision [10] Management's Comments on Operating Environment and Future Outlook - Management expects to end the year towards the low end of the original adjusted EBITDA guidance range, attributing this to timing-related factors [18] - The company remains optimistic about the outlook, citing strong development activity and commercial progress across its segments [18] Other Important Information - The company was added to the Russell 3000, Russell 2000, and Russell Microcap indices during the June reconstitution, enhancing visibility among institutional investors [11] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded without any inquiries from participants [19]

Company Overview - Summit Midstream Corporation (SMC) operates across six resource plays in the U S, focusing on natural gas, crude oil, and produced water gathering, processing, and transmission[12] - The company boasts a diversified asset portfolio with key positions in crude oil- and natural gas-oriented basins[48] - SMC's strategy includes maximizing free cash flow, improving base business well connections, commercializing the Double E Pipeline, and executing strategic acquisitions and divestitures[19] Financial Highlights and Strategy - SMC aims for a long-term leverage target of 3 5x through continued EBITDA generation and debt repayment[10] - The company expects 2025 Adjusted EBITDA to be in the range of $245 million to $280 million[33] - SMC refinanced its capital structure in July 2024, issuing $575 million in Second Lien Secured Notes and upsizing its ABL Credit Facility to $500 million, extending maturities until 2029[19] Operational Performance and Capacity - In Q2 2025, SMC reported a total volume of 1 4 Bcfe/d, with 66% being natural gas[13] - The company has a total AMI of 5 7 million acres and operates 2,751 pipeline miles with a capacity of 4 6 Bcfe/d[13] - The Permian segment has a capacity of 1 50 Bcf/d with approximately 74% utilization[33] Double E Pipeline - Double E Pipeline has existing contracts representing MVC quantities with firm transportation service agreements[55] - The Double E pipeline is estimated to generate approximately $40 million in EBITDA with existing contracts[52] - The company has executed 215 MMcf/d of incremental 10-year take-or-pay contracts since 2024 for the Double E Pipeline[19, 60]

[Executive Summary and Management Commentary](index=1&type=section&id=Executive%20Summary%20and%20Management%20Commentary) Q2 2025 Adjusted EBITDA of **$61.1 million** was below expectations, leading to a revised full-year outlook near the low end of guidance - Adjusted EBITDA performance was below expectations primarily due to the timing and performance of certain wells in the DJ and Arkoma Basins, as well as lower realized commodity prices in the DJ Basin[4](index=4&type=chunk) - The company now expects to be near the low end of its 2025 Adjusted EBITDA guidance range of **$245 million to $280 million**[4](index=4&type=chunk)[6](index=6&type=chunk) - Key commercial developments include a new 20-well program in the Arkoma Basin, a 10-year gathering agreement extension in the Williston Basin, and a new **100 MMcf/d** firm capacity agreement on the Double E Pipeline expected to be in-service in Q4 2026[5](index=5&type=chunk)[6](index=6&type=chunk) Q2 2025 Key Financial Metrics | Metric | Value (in millions) | | :--- | :--- | | Net Loss | $4.2 | | Adjusted EBITDA | $61.1 | | Distributable Cash Flow (DCF) | $32.4 | | Free Cash Flow (FCF) | $9.2 | [Detailed Operational and Segment Performance](index=1&type=section&id=Detailed%20Operational%20and%20Segment%20Performance) Q2 2025 saw increased natural gas throughput and liquids volumes, with natural gas-driven segments generating **$35.4 million** and oil-driven segments **$33.5 million** in Adjusted EBITDA [Overall Operational Throughput](index=1&type=section&id=Overall%20Operational%20Throughput) Q2 2025 average daily natural gas throughput increased **3.3%** to **912 MMcf/d**, and liquids volumes rose **5.4%** to **78 Mbbl/d** - Compared to Q1 2025, average daily natural gas throughput on wholly owned operated systems increased by **3.3%** to **912 MMcf/d**, and liquids volumes increased by **5.4%** to **78 Mbbl/d**[6](index=6&type=chunk) - The Double E pipeline transported an average of **682 MMcf/d** in Q2 2025, an increase from **549 MMcf/d** in Q2 2024[7](index=7&type=chunk)[11](index=11&type=chunk) Average Daily Throughput by Segment (MMcf/d) | Segment | Q2 2025 (MMcf/d) | Q2 2024 (MMcf/d) | | :--- | :--- | :--- | | Rockies | 147 | 130 | | Piceance | 263 | 289 | | Mid-Con | 502 | 202 | | **Aggregate** | **912** | **716** | [Segment Financial Performance](index=2&type=section&id=Segment%20Financial%20Performance) Total segment Adjusted EBITDA reached **$68.9 million** in Q2 2025, with natural gas-driven segments contributing **$35.4 million** and oil-driven segments **$33.5 million** - Natural gas price-driven segments (Mid-Con, Piceance) generated a combined **$35.4 million** in adjusted EBITDA, a **3.3%** increase from Q1 2025, driven by higher volumes and sales in the Mid-Con segment[10](index=10&type=chunk) - Oil price-driven segments (Rockies, Permian) generated **$33.5 million** in combined adjusted EBITDA, a **1.2%** increase from Q1 2025, despite an estimated **$2.0 million** negative impact from lower commodity prices in Rockies[10](index=10&type=chunk) Segment Adjusted EBITDA (in thousands) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Rockies | $25,235 | $22,858 | | Permian | $8,300 | $7,697 | | Piceance | $10,474 | $12,848 | | Mid-Con | $24,900 | $5,420 | | **Total Segment Adj. EBITDA** | **$68,909** | **$50,436** | [Capital Management and Financial Position](index=5&type=section&id=Capital%20Management%20and%20Financial%20Position) SMC invested **$26.4 million** in Q2 2025 capital expenditures, maintaining **$20.9 million** cash and **$359 million** ABL Revolver availability, and remaining compliant with financial covenants [Capital Expenditures](index=5&type=section&id=Capital%20Expenditures) Q2 2025 total capital expenditures were **$26.4 million**, including **$5.5 million** for maintenance, with YTD segment capital expenditures at **$45.2 million** Q2 2025 Capital Expenditures | Category | Amount (in millions) | | :--- | :--- | | Total Capital Expenditures | $26.4 | | Maintenance Capital Expenditures | $5.5 | YTD 2025 Capital Expenditures by Segment (in thousands) | Segment | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Rockies | $22,321 | $20,468 | | Piceance | $1,200 | $873 | | Mid-Con | $21,726 | $525 | | **Total Segment Capex** | **$45,247** | **$24,683** | [Capital & Liquidity](index=5&type=section&id=Capital%20%26%20Liquidity) As of June 30, 2025, SMC had **$20.9 million** cash and **$359 million** ABL Revolver availability, remaining compliant with all financial covenants, including a total leverage ratio of approximately **4.1x** - As of June 30, 2025, SMC had **$20.9 million** in unrestricted cash and **$359 million** of borrowing availability under its **$500 million** ABL Revolver[18](index=18&type=chunk) - The company was in compliance with all financial covenants, with an interest coverage ratio of **2.7x** (vs. **2.0x** minimum) and a first lien leverage ratio of **0.5x** (vs. **2.5x** maximum)[18](index=18&type=chunk) - The total leverage ratio was approximately **4.1x** as of June 30, 2025[18](index=18&type=chunk) [Revenue and Corporate Updates](index=5&type=section&id=Revenue%20and%20Corporate%20Updates) SMC billed **$4.2 million** for MVC shortfalls in Q2 2025, contributing to revenue and Adjusted EBITDA, while common stock dividends remain suspended, but Series A Preferred stock dividends will be paid [MVC Shortfall Payments](index=5&type=section&id=MVC%20Shortfall%20Payments) SMC billed customers **$4.2 million** in Q2 2025 for MVC shortfalls, recognizing the full amount as gathering revenue and contributing to Adjusted EBITDA - SMC billed customers **$4.2 million** in Q2 2025 for MVC shortfalls, recognizing the full amount as gathering revenue[20](index=20&type=chunk) MVC Shortfall Payments Impact (Q2 2025, in thousands) | Basin | MVC Billings | Gathering Revenue | Net Impact to Adj. EBITDA | | :--- | :--- | :--- | :--- | | Rockies | $— | $— | $(9) | | Piceance | $4,219 | $4,219 | $4,219 | | **Total** | **$4,219** | **$4,219** | **$4,210** | [Quarterly Dividend](index=6&type=section&id=Quarterly%20Dividend) The board continued the suspension of common stock cash dividends for Q2 2025, but will pay the scheduled dividend on Series A Preferred stock, with prior unpaid preferred dividends accrued - The board of directors has continued the suspension of cash dividends on common stock for the period ended June 30, 2025[23](index=23&type=chunk) - The cash dividend for Series A Preferred stock for the period ending September 14, 2025, will be paid, and all unpaid preferred dividends from prior periods remain accrued[23](index=23&type=chunk) [Unaudited Financial Statements](index=10&type=section&id=Unaudited%20Financial%20Statements) Q2 2025 total revenues were **$140.2 million** with a net loss of **$4.2 million**, total assets **$2.42 billion**, liabilities **$1.33 billion**, and operating cash flow **$37.2 million** [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were **$2.42 billion**, total liabilities **$1.33 billion**, and total equity **$959.0 million** Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $116,071 | $118,271 | | **Total Assets** | **$2,423,043** | **$2,359,484** | | Total Current Liabilities | $157,386 | $174,801 | | Long-term debt, net | $1,058,663 | $976,995 | | **Total Liabilities** | **$1,327,057** | **$1,261,413** | | **Total Equity** | **$959,026** | **$965,125** | [Condensed Consolidated Statements of Operations](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 total revenues were **$140.2 million**, with total costs and expenses at **$126.0 million**, leading to a net loss of **$4.2 million** Statement of Operations Summary (Q2, in thousands) | Account | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $140,217 | $101,315 | | Total Costs and Expenses | $126,013 | $94,465 | | Interest Expense | $(23,864) | $(31,457) | | **Net Income (Loss)** | **$(4,228)** | **$(23,778)** | | **EPS - basic** | **$(0.66)** | **$(2.91)** | [Other Financial and Operating Data](index=12&type=section&id=Other%20Financial%20and%20Operating%20Data) Q2 2025 operating cash flow was **$37.2 million**, capital expenditures **$26.4 million**, Adjusted EBITDA **$61.1 million**, DCF **$32.4 million**, and FCF **$9.2 million** Key Financial Data Summary (Q2, in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $37,213 | $(12,643) | | Capital expenditures | $26,390 | $10,522 | | Adjusted EBITDA | $61,094 | $43,148 | | Distributable Cash Flow (DCF) | $32,356 | $11,697 | | Free Cash Flow (FCF) | $9,222 | $2,723 | [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) The company uses non-GAAP measures like Adjusted EBITDA, DCF, and FCF; Q2 2025 net loss of **$4.2 million** reconciled to **$61.1 million** Adjusted EBITDA and **$32.4 million** DCF - The company uses non-GAAP measures including Adjusted EBITDA, Distributable Cash Flow (DCF), and Free Cash Flow (FCF) for financial, operating, and planning decisions[28](index=28&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (Q2 2025, in thousands) | Line Item | Amount | | :--- | :--- | | **Net income (loss)** | **$(4,228)** | | Add: Interest expense | $23,864 | | Add: Depreciation and amortization | $30,289 | | Add: Proportional adjusted EBITDA for equity method investees | $7,444 | | Other adjustments (net) | $8,527 | | Less: Income from equity method investees | $4,802 | | **Adjusted EBITDA** | **$61,094** | Reconciliation of Adjusted EBITDA to DCF (Q2 2025, in thousands) | Line Item | Amount | | :--- | :--- | | **Adjusted EBITDA** | **$61,094** | | Less: Cash interest paid | $5,309 | | Less: Senior notes interest adjustment | $17,789 | | Less: Maintenance capital expenditures | $5,460 | | Less: Cash paid for taxes | $180 | | **Cash flow available for distributions (DCF)** | **$32,356** |

Core Insights - Summit Midstream Corporation reported a net loss of $4.2 million for the second quarter of 2025, with adjusted EBITDA of $61.1 million, slightly below expectations [7][3] - The company connected 47 wells during the quarter and maintained an active customer base with three drilling rigs [7][4] - The company expects to be near the low end of its 2025 adjusted EBITDA guidance range of $245 million to $280 million due to temporary impacts on well performance and commodity prices [3][7] Financial Performance - Adjusted EBITDA for the second quarter was $61.1 million, a 41.6% increase from $43.1 million in the same quarter of 2024 [12][39] - Total revenues for the second quarter reached $140.2 million, compared to $101.3 million in the prior year [39] - Cash flow available for distributions was $32.4 million, with free cash flow of $9.2 million [7][39] Operational Highlights - Average daily natural gas throughput increased by 3.3% to 912 MMcf/d, while liquids volumes rose by 5.4% to 78 Mbbl/d compared to the first quarter of 2025 [5][39] - The Double E pipeline transported an average of 682 MMcf/d, contributing $8.3 million in adjusted EBITDA for the quarter [5][12] - The company executed a 10-year extension of gathering agreements in the Williston Basin, increasing the weighted average contract life from four years to eight years [4][7] Capital Expenditures and Liquidity - Capital expenditures totaled $26.4 million in the second quarter, including $5.5 million for maintenance [14][39] - As of June 30, 2025, the company had $20.9 million in unrestricted cash and $140 million drawn under its $500 million ABL Revolver [18][19] - The company reported compliance with all financial covenants, including an interest coverage ratio of 2.7x [18] Market Position and Future Outlook - The company remains active in pursuing organic growth opportunities and targeted acquisitions, particularly in the Rockies and Arkoma Basins [4][3] - An anchor customer in the Arkoma Basin is expected to begin a 20-well development program in the fourth quarter of 2025 [7][4] - The company anticipates a Q4 2026 in-service date for a new processing plant connection tied to a precedent agreement for 100 MMcf/d of firm capacity [4][7]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=9&type=section&id=Item%201.%20Financial%20Statements.) The unaudited condensed consolidated financial statements for the six months ended June 30, 2025, show total revenues of **$272.9 million**, a significant increase from **$220.2 million** in the prior year period, with net income sharply decreasing to **$0.4 million** from **$109.1 million** due to large asset sale gains in 2024 [Unaudited Condensed Consolidated Balance Sheets](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets.) Total assets increased to **$2.42 billion** as of June 30, 2025, from **$2.36 billion** at year-end 2024, driven by property, plant, and equipment, while total liabilities grew to **$1.33 billion** primarily due to long-term debt Condensed Consolidated Balance Sheet Data (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $116,071 | $118,271 | | **Property, plant and equipment, net** | $1,853,154 | $1,785,029 | | **TOTAL ASSETS** | **$2,423,043** | **$2,359,484** | | **Total Current Liabilities** | $157,386 | $174,801 | | **Long-term debt, net** | $1,058,663 | $976,995 | | **TOTAL LIABILITIES** | **$1,327,057** | **$1,261,413** | | **Total Equity** | $959,026 | $965,125 | | **TOTAL LIABILITIES AND EQUITY** | **$2,423,043** | **$2,359,484** | [Unaudited Condensed Consolidated Statements of Operations](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations.) For Q2 2025, the company reported a net loss of **$4.2 million** on revenues of **$140.2 million**, while H1 2025 net income was **$0.4 million** on **$272.9 million** in revenues, significantly lower than H1 2024 due to substantial gains on asset sales in the prior year Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $140,217 | $101,315 | $272,914 | $220,186 | | **Total Costs and Expenses** | $126,013 | $94,465 | $244,131 | $268,031 | | **Interest Expense** | ($23,864) | ($31,457) | ($46,401) | ($69,303) | | **Gain on Sale of Business/Investment** | $0 | ($2,192) | ($43) | $210,271 | | **Net Income (Loss)** | **($4,228)** | **($23,778)** | **$406** | **$109,149** | | **EPS (Basic)** | ($0.66) | ($2.91) | ($0.83) | $9.00 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows.) Net cash provided by operating activities increased to **$53.2 million** in H1 2025, while investing activities shifted from providing **$672.0 million** in H1 2024 to using **$120.1 million** in H1 2025 due to acquisitions and capital expenditures, and financing activities provided **$67.1 million** from new debt issuances Six Months Ended June 30, Cash Flow Summary (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $53,243 | $30,973 | | **Net cash provided by (used in) investing activities** | ($120,056) | $672,038 | | **Net cash provided by (used in) financing activities** | $67,118 | ($559,440) | | **Net change in cash, cash equivalents and restricted cash** | $305 | $143,571 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements.) The notes detail significant corporate events like the Moonrise Acquisition for **$90.0 million** and the Corporate Reorganization, along with accounting policies, revenue breakdowns, debt structure, and equity changes - On March 10, 2025, the Company completed the Moonrise Acquisition for total consideration of approximately **$90.0 million**, consisting of **$70.0 million** in cash and **462,265 shares** of common stock[34](index=34&type=chunk) - The Company divested its Summit Utica assets on March 22, 2024, for **$625.0 million**, recognizing a total gain of **$212.5 million**, and sold its Mountaineer Midstream system on May 1, 2024, for **$70.0 million** after a **$68.0 million** impairment charge[44](index=44&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) - As of June 30, 2025, total debt was approximately **$1.075 billion**, primarily comprising the Amended and Restated ABL Facility (**$140.0 million** outstanding), the Permian Transmission Term Loan (**$121.2 million**), and the **8.625% 2029 Secured Notes** (**$825.0 million**)[61](index=61&type=chunk) - The company reinstated cash dividends on its Series A Preferred Stock on March 14, 2025, paying **$6.7 million** during the first six months of 2025, with accrued and unpaid dividends totaling **$46.7 million** as of June 30, 2025[108](index=108&type=chunk)[121](index=121&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management attributes the significant revenue increase in Q2 and H1 2025 to the Tall Oak and Moonrise acquisitions, which boosted the Mid-Con and Rockies segments, while H1 2025 net income was minimal compared to H1 2024 due to prior-year asset sale gains [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Consolidated revenues for Q2 2025 increased by **38%** year-over-year to **$140.2 million**, primarily driven by acquisitions in the Mid-Con and Rockies segments, while the Piceance segment declined and the Northeast segment was divested Reportable Segment Adjusted EBITDA (in thousands) | Segment | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Rockies | $25,235 | $22,858 | $50,104 | $45,732 | | Permian | $8,300 | $7,697 | $16,570 | $14,962 | | Piceance | $10,474 | $12,848 | $22,260 | $28,081 | | Mid-Con | $24,900 | $5,420 | $47,357 | $10,520 | | Northeast | $0 | $1,613 | $0 | $30,634 | - The Mid-Con segment's volume throughput increased by **149%** in Q2 2025 and **160%** in H1 2025 year-over-year, primarily due to the Tall Oak Acquisition[204](index=204&type=chunk) - Interest expense decreased by **$7.6 million** in Q2 2025 and **$22.9 million** in H1 2025 compared to the same periods in 2024, due to debt refinancing activities that replaced higher-cost notes with the new 2029 Secured Notes[181](index=181&type=chunk)[182](index=182&type=chunk) [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by internally generated cash flow, its Amended and Restated ABL Facility with **$359.2 million** available capacity, and access to capital markets, deemed sufficient for the next twelve months - As of June 30, 2025, the company had **$140.0 million** outstanding under its **$500.0 million** Amended and Restated ABL Facility, with an available borrowing capacity of **$359.2 million**[226](index=226&type=chunk) - The company was in compliance with all debt covenants as of June 30, 2025, with a First Lien Net Leverage Ratio of **0.53:1.00** (covenant limit of **2.50:1.00**) and an Interest Coverage Ratio of **2.76:1.00** (covenant floor of **2.00:1.00**)[225](index=225&type=chunk) - Cash paid for capital expenditures totaled **$47.0 million** for the six months ended June 30, 2025, which included **$8.0 million** for maintenance[233](index=233&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk.) The company's market risk exposure remains largely unchanged, primarily encompassing interest rate risk on **$261.2 million** of variable-rate debt and limited commodity price risk from percentage-of-proceeds arrangements - As of June 30, 2025, the company had approximately **$825.0 million** of fixed-rate debt and **$261.2 million** of variable-rate debt (**$140.0 million** ABL Facility and **$121.2 million** Permian Term Loan)[250](index=250&type=chunk) - A hypothetical **1%** increase in interest rates on variable-rate debt would have increased interest expense by approximately **$1.3 million** for the six months ended June 30, 2025[250](index=250&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - The company's disclosure controls and procedures were deemed effective as of the end of the period, June 30, 2025[252](index=252&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in a lawsuit with Fiberspar Corporation for over **$5.0 million** and is managing the **$36.3 million** 'Global Settlement' from the 2015 Blacktail Release, of which **$21.3 million** has been paid - A lawsuit filed by Fiberspar Corporation, alleging over **$5.0 million** in unpaid orders, is pending with a trial date set for January 2026[254](index=254&type=chunk) - The Global Settlement for the 2015 Blacktail Release resulted in total losses of **$36.3 million**; as of June 30, 2025, the company has paid **$21.3 million** of this amount[259](index=259&type=chunk) [Risk Factors](index=60&type=section&id=Item%201A.%20Risk%20Factors.) This section incorporates by reference the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K and the Quarterly Report for the period ended March 31, 2025, with no new significant risk factors detailed - The risk factors from the 2024 Annual Report and the Q1 2025 report are incorporated by reference[260](index=260&type=chunk) [Other Information](index=61&type=section&id=Item%205.%20Other%20Information.) There is no other information to report for this period - None[264](index=264&type=chunk) [Exhibits](index=61&type=section&id=Item%206.%20Exhibits.) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, updated executive compensation letters, and required CEO/CFO certifications - Exhibits filed include corporate governance documents, updated executive compensation letters, and required CEO/CFO certifications[265](index=265&type=chunk)

Core Points - Summit Midstream Corporation (SMC) will report its second quarter 2025 operating and financial results on August 11, 2025, after the market closes [1] - A conference call to discuss these results is scheduled for August 12, 2025, at 10:00 a.m. Eastern [2] - SMC's senior management will attend Citi's 2025 Natural Resources Conference from August 12 to 14, 2025 [3] Company Overview - SMC is focused on developing, owning, and operating midstream energy infrastructure assets in key unconventional resource basins in the continental United States [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 unconventional resource basins: Williston Basin, Denver-Julesburg Basin, Fort Worth Basin, Arkoma Basin, and Piceance Basin [4] - The company has an equity investment in Double E Pipeline, LLC, which offers interstate natural gas transportation services [4]

Group 1 - Summit Midstream Corporation (SMC) has made its 2024 Schedule K-3 packages available online for common and preferred unitholders [1][2] - Common unitholders can access their Schedule K-3 at a specified website, while preferred unitholders have a different link for access [1] - SMC provides assistance for unitholders needing help with their Schedule K-3 through email and phone support [1] Group 2 - A limited number of unitholders, particularly foreign unitholders and those needing to compute a foreign tax credit, may require detailed information from Schedule K-3 for their tax reporting [2] - It is encouraged for unitholders to review the information on Schedule K-3 and consult with tax advisors if necessary [2] Group 3 - SMC focuses on developing, owning, and operating midstream energy infrastructure assets in key unconventional resource basins across the continental United States [3] - The company provides services such as natural gas, crude oil, and produced water gathering, processing, and transportation under long-term, fee-based agreements [3] - SMC operates in five major basins: Williston, Denver-Julesburg, Fort Worth, Arkoma, and Piceance, and has an investment in Double E Pipeline, LLC for interstate natural gas transportation [3]