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]
Summit Midstream Partners, LP(SMC) - 2025 Q3 - Quarterly Results