Financial Performance - Third quarter 2024 net loss of $197.5 million, including $142.6 million non-cash income tax expense primarily due to the C-Corp conversion[2] - Generated adjusted EBITDA of $45.2 million, representing approximately 9% quarter-over-quarter growth, with Distributable Cash Flow (DCF) of $22.1 million and Free Cash Flow (FCF) of $9.9 million[2] - Expect to generate approximately $45 million to $50 million of adjusted EBITDA in the fourth quarter 2024[2] - Net loss for the nine months ended September 30, 2024, was $88.4 million, compared to a net loss of $23.8 million in the same period in 2023[41] - Adjusted EBITDA for the nine months ended September 30, 2024, was $158.4 million, down from $191.8 million in the same period in 2023[42] - Net income for Q3 2024 was a loss of $197.5 million, compared to a profit of $3.9 million in Q3 2023[46] - Adjusted EBITDA for Q3 2024 was $45.2 million, down from $72.8 million in Q3 2023[46] - Free Cash Flow for Q3 2024 was $9.7 million, compared to $21.9 million in Q3 2023[46] - Proportional adjusted EBITDA for equity method investees was $7.6 million in Q3 2024, down from $16.9 million in Q3 2023[46] - Cash flow available for distributions for the nine months ended September 30, 2024 was $66.5 million, down from $87.8 million in the same period of 2023[51] Operational Metrics - Connected 38 wells during the third quarter, with six active drilling rigs and over 100 drilled but uncompleted wells (DUCs) behind the systems[2] - Average daily natural gas throughput decreased 6.8% to 667 MMcf/d, and liquids volumes decreased 6.7% to 70 Mbbl/d, relative to the second quarter of 2024[3] - Double E Pipeline gross volumes transported increased 20.4% quarter-over-quarter to 661 MMcf/d, generating $8.5 million of adjusted EBITDA[3] - Oil price-driven segments generated $33.3 million of combined segment adjusted EBITDA, a 9.1% increase relative to the second quarter[7] - Aggregate average daily throughput for natural gas decreased to 903 MMcf/d in the nine months ended September 30, 2024, from 1,249 MMcf/d in the same period in 2023[42] - Aggregate average daily throughput for liquids decreased to 73 Mbbl/d in the nine months ended September 30, 2024, from 76 Mbbl/d in the same period in 2023[42] - Ohio Gathering average daily throughput decreased to 283 MMcf/d in the nine months ended September 30, 2024, from 763 MMcf/d in the same period in 2023[42] - Double E average daily throughput increased to 559 MMcf/d in the nine months ended September 30, 2024, from 278 MMcf/d in the same period in 2023[42] Capital Expenditures and Cash Flow - Capital expenditures totaled $10.9 million in the third quarter of 2024, primarily related to pad connections in the Rockies segment[13] - Growth capital expenditures for Q3 2024 were $9.8 million, compared to $14.9 million in Q3 2023[46] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $40.1 million, down from $110.8 million in the same period in 2023[42] Debt and Liquidity - As of September 30, 2024, the company had $17.8 million in unrestricted cash and $150 million drawn under its $500 million ABL Revolver, with $349.2 million of borrowing availability[16] - Long-term debt decreased to $826.5 million as of September 30, 2024, from $1,455.2 million as of December 31, 2023[40] Acquisitions and Divestitures - Announced the transformative acquisition of Tall Oak Midstream III in the Arkoma Basin, with the special meeting of stockholders expected on November 29, 2024[2] - The company divested Ohio Gathering in March 2024, with proportional adjusted EBITDA including results from December 1, 2023 through March 22, 2024[47] Non-GAAP Financial Measures - Summit Midstream Corporation uses non-GAAP financial measures such as adjusted EBITDA, segment adjusted EBITDA, Distributable Cash Flow, and Free Cash Flow[29] - Adjusted EBITDA is defined as net income or loss plus various adjustments, including interest expense, depreciation, and amortization[30] - Distributable Cash Flow is calculated as adjusted EBITDA less cash interest paid, taxes, and maintenance capital expenditures[33] Revenue and Deferred Revenue - Total revenues for the nine months ended September 30, 2024, were $322.6 million, a decrease from $331.6 million in the same period in 2023[41] - Total MVC shortfall payment adjustments amounted to $5,464 thousand for the nine months ended September 30, 2024[22] - Net change in deferred revenue related to MVC shortfall payment adjustments totaled $18,147 thousand, with Rockies contributing $1,098 thousand, Piceance $14,721 thousand, Northeast $2,288 thousand, and Barnett $40 thousand[24] Corporate Actions and Events - Summit Midstream Corporation suspended cash dividends on common shares and Series A Preferred Stock for the period ended September 30, 2024[25] - The company will host a Q3 2024 earnings call on November 12, 2024, at 10:00 a.m. Eastern[26] - Senior management will attend the 2024 Bank of America Leverage Finance Conference and the 2024 Wells Fargo Midstream, Energy, & Utilities Symposium[28] - The company has filed a proxy statement with the SEC regarding a proposed transaction and urges investors to review it[36] Asset and Liability Changes - Total assets decreased to $1,999.2 million as of September 30, 2024, from $2,494.2 million as of December 31, 2023[40] - For the nine months ended September 30, 2024, the company incurred $13.2 million in transaction and other costs[51] Geographic and Segment Operations - Summit Midstream Corporation operates in four unconventional resource basins: Williston, Denver-Julesburg, Fort Worth, and Piceance[34]
Summit Midstream Partners, LP(SMC) - 2024 Q3 - Quarterly Results