HOUSTON, Feb. 2, 2026 /PRNewswire/ -- Summit Midstream Corporation (NYSE: SMC) ("Summit", "SMC" or the  "Company") announced today that Chris Tennant will join the Company as Senior Vice President and Chief Commercial Officer (CCO), effective immediately. In this role, Chris will be responsible for overseeing Summit's commercial strategy, customer relationships, and long-term growth initiatives across the Company's footprint. His appointment reinforces Summit's focus on disciplined growth, strengthening it ...

Core Insights - Summit Midstream (SMC) has faced financial stress due to management's failure to anticipate the prolonged downturn in the natural gas market, leading to a turnaround situation [2] Group 1: Company Overview - Summit Midstream started with conservative financial ratios but has encountered challenges due to cyclical downturns in the oil and gas industry [2] - The company operates in a cyclical industry characterized by boom and bust cycles, requiring patience and experience for successful investment [2] Group 2: Investment Strategy - The focus is on identifying undervalued and under-followed oil and gas companies, particularly midstream firms that present compelling investment opportunities [2] - The investment group, Oil & Gas Value Research, provides a platform for investors to discuss recent developments and share insights [2]

Group 1 - The article presents a sell rating for Pernod Ricard, indicating a contrarian investment perspective focused on identifying undervalued stocks with limited risks and potential for decent to high upside [1] - The author emphasizes the belief that the best investment ideas are often the simplest, suggesting a straightforward approach to investment analysis [1] Group 2 - No specific financial data or performance metrics for Pernod Ricard are provided in the article [1] - The article does not include any recommendations or advice regarding investment suitability for individual investors [2][3] - There is no indication of any current stock or derivative positions held by the author in relation to the companies mentioned [2]

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]