Core Insights - Summit Midstream Corporation reported its financial and operational results for Q4 and full-year 2024, along with guidance for 2025 [1][3] - The company successfully executed strategic milestones, including the sale of its Northeast business and the acquisition of Tall Oak Midstream, enhancing financial flexibility and operational capacity [3][6] - For 2025, the company anticipates adjusted EBITDA between $245 million and $280 million, with a focus on leveraging its strong balance sheet for growth initiatives [6][20] Financial Performance - In Q4 2024, Summit reported a net loss of $24.8 million and adjusted EBITDA of $46.2 million, with cash flow available for distributions of $22.1 million [6][45] - The average daily natural gas throughput increased by 10.5% to 737 MMcf/d, while liquids volumes decreased by 2.9% to 68 Mbbl/d compared to Q3 2024 [4][46] - Total capital expenditures for Q4 2024 were $15.8 million, including maintenance capital expenditures of $4.3 million [13][45] Strategic Initiatives - The company completed the acquisition of Tall Oak Midstream, which is expected to enhance its natural gas exposure and improve its balance sheet [3][6] - A bolt-on acquisition of the Moonrise gathering and processing system in the DJ Basin was also announced, aimed at expanding operational capacity [3][6] - Summit plans to reinstate cash dividends on its Series A Preferred Stock starting March 15, 2025, as part of its strategy to maximize shareholder value [6][28] 2025 Guidance - The company expects to connect approximately 125 to 185 wells in 2025, with a natural gas throughput range of 900 MMcf/d to 965 MMcf/d [18][19] - Adjusted EBITDA guidance for 2025 is set between $245 million and $280 million, with capital expenditures projected at $65 million to $75 million [20][21] - The guidance reflects a conservative approach based on current drilling schedules and commodity price environments [16][20] Capital and Liquidity - As of December 31, 2024, Summit had $22.8 million in unrestricted cash and $305 million drawn under its $500 million ABL Revolver, with significant borrowing availability [22][23] - The company reported a total leverage ratio of approximately 3.9x, indicating improved financial metrics following strategic acquisitions [23][24] - The successful refinancing of a $500 million credit facility has provided additional financial flexibility for future growth [3][6]
Summit Midstream Corporation Reports Fourth Quarter and Full-Year 2024 Financial and Operating Results & Provides Full-Year 2025 Guidance