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