Operational Capacity and Commitments - The company has remaining Minimum Volume Commitments (MVCs) totaling 0.1 Tcfe, with a weighted-average remaining life of 2.4 years and an average throughput of approximately 90 MMcfe/d through 2028[56]. - In 2024, the aggregate natural gas volume throughput averaged 862 MMcf/d, while crude oil and produced water volume throughput averaged 72 Mbbl/d[57]. - The Double E pipeline, in which the company holds a 70% interest, has a throughput capacity of 1.5 Bcf/d and is underpinned by long-term take-or-pay contracts totaling 1.1 Bcf/d[71]. - The Piceance reportable segment has an aggregate throughput capacity of 1,338 MMcf/d and MVCs averaging 64 MMcf/d through 2029[77]. - The Rockies reportable segment has an average daily throughput capacity of 220 MMcf/d, with MVCs extending through 2029[63]. - The Mid-Con reportable segment has a throughput capacity of 440 MMcf/d, with AMIs covering approximately 2.9 million surface acres[82]. - The company executed a new agreement with Matador Resources Company in 2024, adding 75 MMcf/d of firm transport capacity for a 10-year term[74]. - The Grand River system in the Piceance segment is primarily a low-pressure gathering system that gathers natural gas from multiple producers, including QB Energy and Terra Energy Partners[79]. Financial Performance and Revenue - The company completed the sale of its equity method investment in Ohio Gathering for $625 million on March 22, 2024[59]. - The company’s revenue from activities exposed to commodity price fluctuations accounted for approximately 45% of total revenues in 2024[57]. - The company generates most of its revenues through long-term fee-based gathering agreements, which include minimum volume commitments (MVCs) and area of mutual interest (AMI) agreements[431]. Regulatory Environment - FERC regulates the transportation of natural gas and crude oil, impacting rates and terms for gathering and transportation services[93]. - The Double E Pipeline and Epping Pipeline are subject to FERC's jurisdiction, with tariffs filed for regulatory approval[96]. - PHMSA has extended pipeline safety requirements to onshore gas gathering pipelines, requiring compliance with incident and annual reporting[110]. - The company is subject to various federal and state regulations, including safety standards and anti-market manipulation rules, with potential fines of up to $1.5 million per day for violations[106]. - The company must maintain ongoing assessments of pipeline integrity and implement preventive actions as part of its compliance with safety regulations[112]. - The company is subject to stringent federal, state, and local environmental laws and regulations that can impact business activities[114]. - Non-compliance with environmental regulations may lead to administrative, civil, and criminal penalties, including monetary fines[115]. - The trend in environmental regulation is towards more stringent requirements, which may result in increased future expenditures for compliance and remediation[116]. - The company may be jointly and severally liable for cleanup costs under environmental statutes like CERCLA, which could impact financial conditions[118]. - The company is required to comply with the Oil Pollution Control Act (OPA) and maintain Spill Prevention, Control, and Countermeasure (SPCC) plans for certain facilities[129]. - Hydraulic fracturing regulations may become more stringent, potentially impacting oil and gas development and increasing operational costs[130]. - The Endangered Species Act restricts activities that may affect endangered species, which could impact pipeline operations[137]. Employee and Financial Management - As of December 31, 2024, the company employed 272 full-time employees, with no employees covered by collective bargaining agreements[145]. - The company has $575.0 million in fixed-rate debt and $305.0 million outstanding under a variable rate Amended and Restated ABL Facility as of December 31, 2024[430]. - A hypothetical 1% increase in interest rates on variable rate debt would increase interest expense by approximately $2.5 million for the year ended December 31, 2024[430]. Environmental and Climate Regulations - The Waste Emissions Charge for 2024 is set at $900 per ton of methane emitted over permitted thresholds, increasing to $1,200 in 2025 and $1,500 in 2026[140]. - The company is subject to GHG emissions reporting requirements for assets exceeding specified thresholds, impacting operations and compliance costs[140]. - The Biden Administration aims for a 50% reduction in U.S. GHG emissions relative to 2005 levels by 2030, influencing regulatory landscape[143]. - Future implementation of climate change regulations could materially affect the company's operations and market competitiveness[144]. - The company recognizes the importance of employee retention and development, offering a comprehensive benefits package and professional training opportunities[145].
Summit Midstream Partners, LP(SMC) - 2024 Q4 - Annual Report