#United States #Houston #Natural Gas #Adjusted EBITDA #Summit Midstream Corporation

Summit Midstream Corporation Reports First Quarter 2025 Results

On May 7, 2025, Summit Midstream Corporation (NYSE: SMC), known for its midstream energy infrastructure assets, released its financial and operational results for the first quarter of 2025. The results demonstrate a company in a robust state, showcasing strong net income, increased cash flow, and successful acquisitions.

Financial Performance Highlights

The company reported a net income of $4.6 million for the first quarter, alongside an impressive adjusted EBITDA of $57.5 million. The cash flow available for distributions, termed Distributable Cash Flow (DCF), reached $33.5 million. This positive financial performance reflects Summit's strategic focus and operational efficiency during the period.

In addition, Summit successfully raised $250 million through an offering of 8.625% Senior Secured Second Lien Notes, maturing in 2029. This was done at an issue price of 103.375%, further bolstering the company's financial stability and capacity for future investments.

The company's acquisition strategy also paid off in the quarter, with the completion of a value-additive acquisition of Moonrise Midstream in the DJ Basin on March 10, 2025. This move bolsters Summit's infrastructure and service offerings in crucial resource areas.

Operational Updates

On the operational front, Summit connected 41 new wells during the quarter, showcasing a proactive approach in the market. The company maintained an active presence with six drilling rigs and more than 100 drilled but uncompleted (DUC) wells in its systems. This highlights the consistent customer demand for Summit's services.

Heath Deneke, President and CEO, elaborated on the financial results, stating that the outcomes were in line with the management's expectations. He expressed satisfaction over the robust activity behind their systems, particularly with the success of new well connections, emphasizing the company's strong customer base and operational execution.

Outlook for 2025

Looking ahead, Summit reaffirmed its financial guidance for 2025, projecting adjusted EBITDA to be in the range of $245 million to $280 million, while total capital expenditures are expected to be between $65 million and $75 million. The management remains vigilant to the potential impact of fluctuating crude oil prices and tariffs but remains optimistic about the natural gas market's outlook.

Deneke stated that customers have not indicated any significant changes to their drilling and completion plans for the second half of 2025 despite the minor downturn in crude oil prices. He pointed out that natural gas remains a favorable prospect, with the Mid-Con segment positioned strategically to capitalize on expected demand growth in the Gulf Coast region.

Segment Performance

In terms of throughput, Summit's natural gas operations saw an impressive 19.8% increase, totaling 883 MMcf/d compared to the previous quarter. Notably, segments focused on natural gas and oil prices performed well, generating $34.2 million and $33.1 million in adjusted EBITDA respectively, highlighting the effectiveness of their diversified business model.

The Mid-Con segment's adjusted EBITDA rose significantly as well, attributed mainly to the Tall Oak Midstream III acquisition and heightened throughput. The economic conditions in the sector have shown resilience, and operational activities hint towards a promising future.

Conclusion and Future Events

Summit Midstream Corporation plans to hold a conference call on May 8, 2025, to discuss its quarterly financial and operational results in more detail. The call will provide investors with deeper insight into the company’s strategies, operational efficiency, and future prospects.

In summary, Summit's first quarter 2025 results signify strong growth and strategic positioning within the midstream energy sector. Investors and stakeholders can remain optimistic about the company's future performance as it continues to adapt and thrive in a dynamic market landscape.