Financial & Operational Highlights Management Commentary Management reported Q1 2025 Adjusted EBITDA of $57.5 million met expectations, driven by robust customer activity and a favorable natural gas outlook, supported by a diversified asset base - First quarter 2025 Adjusted EBITDA was $57.5 million, in line with management's expectations4 - Customer activity included 41 new wells turned-in-line during the quarter, with six rigs currently active across the company's systems4 - The Rockies segment's Adjusted EBITDA guidance of $100 million to $125 million already accounts for potential delays, with performance potentially at the lower end if H2 2025 wells are deferred4 - The company has a favorable outlook for natural gas, expected to benefit the Mid-Con segment, with a diversified footprint approximately 50% weighted toward natural gas-oriented drilling4 First Quarter 2025 Key Results The company reported Q1 2025 net income of $4.6 million and Adjusted EBITDA of $57.5 million, with increased natural gas and liquids throughput, alongside strategic debt financing and an acquisition Q1 2025 Financial Metrics | Metric | Value | | :--- | :--- | | Net Income | $4.6 million | | Adjusted EBITDA | $57.5 million | | Distributable Cash Flow (DCF) | $33.5 million | Q1 2025 vs Q4 2024 Throughput | Metric | Q1 2025 | Change vs Q4 2024 | | :--- | :--- | :--- | | Natural Gas Throughput (MMcf/d) | 883 | +19.8% | | Liquids Volumes (Mbbl/d) | 74 | +8.8% | - Completed the value-accretive bolt-on acquisition of Moonrise Midstream in the DJ Basin on March 10, 20256 - Raised $250 million of additional 8.625% Senior Secured Second Lien Notes and reinstated the cash dividend on Series A Preferred Stock6 2025 Full-Year Guidance The company reiterated its full-year 2025 guidance for Adjusted EBITDA and total capital expenditures 2025 Full-Year Guidance | Metric | Guidance Range ($ million) | | :--- | :--- | | Adjusted EBITDA | $245 to $280 | | Total Capital Expenditures | $65 to $75 | Segment Performance Overall Segment Performance Total segment adjusted EBITDA decreased to $67.4 million in Q1 2025, primarily due to the Northeast segment divestiture, impacting natural gas throughput while liquids volumes remained flat Segment Adjusted EBITDA (in thousands) | Segment | Q1 2025 ($) | Q1 2024 ($) | | :--- | :--- | :--- | | Northeast | — | 29,021 | | Rockies | 24,869 | 22,874 | | Permian | 8,270 | 7,265 | | Piceance | 11,786 | 15,233 | | Mid-Con | 22,457 | 5,100 | | Total | 67,382 | 79,493 | Average Daily Throughput | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Natural Gas (MMcf/d) | 883 | 1,327 | | Liquids (Mbbl/d) | 74 | 74 | Natural Gas Price-Driven Segments Natural gas-driven segments, Mid-Con and Piceance, achieved a combined $34.2 million adjusted EBITDA, a 39.0% increase, primarily due to the Mid-Con segment's acquisition-driven volume growth - Combined segment adjusted EBITDA was $34.2 million, a 39.0% increase relative to the fourth quarter of 20249 - Mid-Con segment adjusted EBITDA totaled $22.5 million, a significant increase from Q4 2024, primarily due to the Tall Oak acquisition and a 48% increase in volume throughput9 - Piceance segment adjusted EBITDA was $11.8 million, flat relative to Q4 2024, as lower operating expenses offset a 4.0% decrease in volume throughput9 Oil Price-Driven Segments Oil-driven segments, Rockies and Permian, generated a combined $33.1 million adjusted EBITDA, a 6.8% increase, driven by higher liquids volumes and the Moonrise acquisition in the Rockies - Combined segment adjusted EBITDA was $33.1 million, representing a 6.8% increase relative to the fourth quarter of 20249 - Rockies segment adjusted EBITDA increased to $24.9 million, driven by an 8.8% increase in liquids volume, the Moonrise Midstream acquisition, and the connection of 30 new wells9 - Permian segment adjusted EBITDA grew to $8.3 million, primarily due to an 8% increase in volumes shipped on the Double E Pipeline9 Financial Position and Liquidity Capital Expenditures Total capital expenditures for Q1 2025 were $20.6 million, including $2.5 million for maintenance, primarily allocated to Rockies segment pad connections and an optimization project Capital Expenditures (in thousands) | Category | Q1 2025 ($) | Q1 2024 ($) | | :--- | :--- | :--- | | Total Cash Paid for CapEx | 20,606 | 16,398 | | Maintenance CapEx | 2,547 | 2,670 | - Capital spending in Q1 2025 was primarily related to pad connections and an optimization project in the Rockies segment14 Capital & Liquidity As of March 31, 2025, the company maintained strong liquidity with $26.2 million cash and $354 million ABL availability, remaining in full compliance with financial covenants - As of March 31, 2025, the company had $26.2 million in unrestricted cash and $354 million of borrowing availability under its $500 million ABL Revolver16 - The company was in compliance with financial covenants, including a first lien leverage ratio of 0.5x (covenant maximum of 2.5x) and an interest coverage ratio of 2.8x (covenant minimum of 2.0x)16 - The total leverage ratio was approximately 4.0x as of March 31, 2025, excluding the potential earnout liability from the Tall Oak Acquisition16 MVC Shortfall Payments In Q1 2025, the company billed and recognized $4.8 million in Minimum Volume Commitment (MVC) shortfall payments as gathering revenue, contributing directly to adjusted EBITDA - The company billed and recognized $4.8 million in MVC shortfall payments as gathering revenue, which contributed the same amount to adjusted EBITDA in Q1 20251820 Dividends Cash dividends on common stock remain suspended, while the cash dividend on Series A Preferred Stock was reinstated effective March 14, 2025, with all prior unpaid dividends accrued - Cash dividends on common stock remain suspended for the period ended March 31, 202521 - The cash dividend on the Series A Preferred Stock was reinstated beginning March 14, 2025, with all unpaid dividends from prior periods remaining accrued21 Consolidated Financial Statements Consolidated Balance Sheet As of March 31, 2025, total assets were $2.43 billion, liabilities $1.33 billion, and equity $968.0 million, reflecting increases in assets and liabilities due to recent activities Balance Sheet Summary (in thousands) | Account | March 31, 2025 ($) | Dec 31, 2024 ($) | | :--- | :--- | :--- | | Total Assets | 2,434,175 | 2,359,484 | | Long-term debt, net | 1,067,172 | 976,995 | | Total Liabilities | 1,331,305 | 1,261,413 | | Total Equity | 967,961 | 965,125 | Consolidated Statement of Operations Q1 2025 total revenues were $132.7 million with net income of $4.6 million (loss of $0.16 per share), a decrease from Q1 2024 due to prior year's significant gains Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2025 ($) | Q1 2024 ($) | | :--- | :--- | :--- | | Total Revenues | 132,697 | 118,871 | | Net Income | 4,634 | 132,927 | | Net Income (Loss) per Share - Basic | (0.16) | 12.05 | - The significantly higher net income in Q1 2024 was driven by an $86.2 million gain on the sale of a business and a $126.3 million gain on the sale of an equity method investment39 Other Financial and Operating Data Q1 2025 key non-GAAP metrics include Adjusted EBITDA of $57.5 million, Distributable Cash Flow of $33.5 million, Free Cash Flow of $11.4 million, and net cash from operations of $16.0 million Key Financial & Operating Data (in thousands) | Metric | Q1 2025 ($) | Q1 2024 ($) | | :--- | :--- | :--- | | Adjusted EBITDA | 57,506 | 70,059 | | Distributable Cash Flow (DCF) | 33,529 | 32,534 | | Free Cash Flow | 11,354 | 17,178 | | Net cash provided by operating activities | 16,030 | 43,616 | Reconciliation of Non-GAAP Measures Reconciliation of Net Income to Adjusted EBITDA and DCF The company reconciles Q1 2025 GAAP Net Income of $4.6 million to Adjusted EBITDA of $57.5 million and Distributable Cash Flow of $33.5 million through various adjustments - To reconcile Q1 2025 Net Income ($4.6 million) to Adjusted EBITDA ($57.5 million), key adjustments included adding back interest expense ($22.5 million), depreciation & amortization ($28.8 million), and other net costs ($6.3 million), while subtracting a gain in fair value of the Tall Oak earn-out ($9.0 million)43 - Adjusted EBITDA of $57.5 million was further adjusted by subtracting cash interest paid ($34.2 million) and maintenance capital expenditures ($2.5 million), and adding a senior notes interest adjustment ($12.9 million) to arrive at Distributable Cash Flow of $33.5 million43 Reconciliation of Net Cash from Operations to Adjusted EBITDA and DCF The report reconciles Q1 2025 Net Cash Provided by Operating Activities of $16.0 million to Adjusted EBITDA of $57.5 million through various adjustments - To reconcile Q1 2025 Net Cash Provided by Operating Activities ($16.0 million) to Adjusted EBITDA ($57.5 million), key adjustments included adding back interest expense ($21.6 million), changes in operating assets and liabilities ($18.0 million), and proportional adjusted EBITDA for equity method investees ($7.4 million), while subtracting distributions from those investees ($6.7 million)44
Summit Midstream Partners, LP(SMC) - 2025 Q1 - Quarterly Results