Summit Midstream Partners, LP(SMC) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Summit Midstream Corporation generated $45.2 million in adjusted EBITDA for Q3 2024, representing a 9% quarter-over-quarter growth [7][20] - The company reported a net loss of $197 million, impacted by a $142 million non-cash income tax expense related to the C-Corp conversion [20] - Capital expenditures totaled $10.9 million, primarily spent in the Rockies segment [20] Business Line Data and Key Metrics Changes - In the Rockies segment, adjusted EBITDA was $24.9 million, a 9% increase from the previous quarter, driven by increased product margin [21] - The Permian Basin segment reported adjusted EBITDA of $8.4 million, an increase of $0.8 million due to higher volume throughput [23] - The Barnett segment's adjusted EBITDA increased to $7.3 million, a rise of $1.9 million, primarily due to a 26% increase in volume throughput [25] Market Data and Key Metrics Changes - Volume throughput in the Double E Pipeline averaged 661 million cubic feet per day, a 20% increase from the previous quarter and approximately 100% year-over-year [23] - Natural gas volumes in the Rockies averaged 128 million cubic feet per day, a decrease of 2 million cubic feet per day from the second quarter [22] Company Strategy and Development Direction - The company reorganized from an MLP to a C-Corp, simplifying its structure and increasing trading liquidity [8] - Summit executed refinancing transactions that reduced total debt and extended the nearest debt maturity to 2029 [9] - The acquisition of Tall Oak Midstream is expected to enhance the company's scale and diversify its portfolio [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted encouraging activity levels behind their systems, expecting continued adjusted EBITDA growth in Q4 2024 [12] - The company anticipates generating $45 million to $50 million of adjusted EBITDA in Q4 2024, representing about 5% growth quarter-over-quarter [18] - Management expressed optimism about the potential for 2025 to mirror 2024 in terms of well connections in the Barnett region [14] Other Important Information - A special meeting of shareholders is scheduled for November 29, 2024, regarding the Tall Oak acquisition [27] Q&A Session Summary - No questions were raised during the Q&A session [28]