Summit Midstream Corporation Reports Third Quarter 2025 Financial and Operating Results

Core Insights - Summit Midstream Corporation reported solid growth in Q3 2025, with adjusted EBITDA increasing by 7.2% to approximately $260 million, driven by higher natural gas volumes in the Rockies region [3][9] - The company anticipates finishing the year near the low end of its adjusted EBITDA guidance range of $245 million to $280 million, primarily due to timing delays in customer activity [4] - The company is optimistic about customer engagement and expects over 120 new well connections in the first half of 2026 [4] Financial Performance - Q3 2025 net income was $5.0 million, with adjusted EBITDA of $65.5 million and free cash flow of $16.7 million [9][36] - Average daily natural gas throughput increased by 1.4% to 925 MMcf/d, while liquids volumes decreased by 7.7% to 72 Mbbl/d compared to Q2 2025 [5][36] - The Double E pipeline transported an average of 712 MMcf/d, contributing $8.7 million in adjusted EBITDA for the quarter [5][9] Segment Performance - Natural gas price-driven segments generated $36.1 million in combined adjusted EBITDA, a 2.0% increase from Q2 2025 [10] - Oil price-driven segments generated $37.7 million in combined adjusted EBITDA, representing a 12.3% increase from Q2 2025 [10] - The Rockies segment adjusted EBITDA increased by $3.8 million, driven by higher natural gas volume throughput and improved product margins [10] Capital Expenditures - Capital expenditures totaled $22.9 million in Q3 2025, primarily related to pad connections in the Rockies and Mid-Con segments [16] - Year-to-date capital expenditures include $9.5 million for Tall Oak Integration and compressor relocation projects [16] Liquidity and Capital Structure - As of September 30, 2025, the company had $24.6 million in unrestricted cash and $150 million drawn under its $500 million ABL Revolver [19] - The total leverage ratio was approximately 4.2x, including potential earnout liability from the Tall Oak Acquisition [19] Future Outlook - The company expects to connect approximately 50 wells in Q4 2025 and is working closely with customers on their 2026 development programs [4][9] - An update on activity levels and full-year 2026 financial guidance will be provided in the Q4 earnings release in March 2026 [4]