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Summit Midstream Corporation: 2024 Financial Results and 2025 Outlook

Summit Midstream Corporation (NYSE: SMC) announced its financial and operational performance for the fourth quarter and the full year of 2024, alongside its guidance for 2025.

Key Highlights of 2024

In the fourth quarter of 2024, Summit Midstream reported a net loss of $24.8 million. Despite this loss, the company achieved an adjusted EBITDA of $46.2 million while generating a distributable cash flow (DCF) of $22.1 million. Summit also reported a free cash flow of $6.6 million, reflecting a positive trend amid challenging conditions.

The company reduced total leverage to 3.9x by the end of 2024 and successfully executed a significant acquisition of Tall Oak Midstream III, which strengthened its operational capabilities. In addition, 156 wells were connected in 2024, and 23 new wells were added in the fourth quarter alone.

On March 10, 2025, Summit took another step forward by closing the acquisition of Moonrise Midstream, further enhancing its footprint in the DJ Basin, an essential region for its natural gas operations. The company reinstated its cash dividend on the Series A Preferred Stock, starting March 15, 2025, which indicates its commitment to returning value to shareholders.

2025 Financial Guidance

Looking ahead, Summit Midstream has provided an optimistic forecast for 2025. The adjusted EBITDA is projected to be in the range of $245 million to $280 million, supported by expected capital expenditures between $65 million and $75 million. The company anticipates well connections to be between 125 and 185 in 2025.

Heath Deneke, President and CEO, highlighted that 2024 was pivotal for the company, with key strategic milestones achieved, including the conversion from an MLP to a Corporation, which broadened its investor appeal and increased trading liquidity. He expressed confidence in the company’s ability to continue executing its growth strategy in 2025 and beyond.

Operational Insights

In terms of operational efficiency, Summit reported average daily natural gas throughput increased by 10.5% to 737 MMcf/d compared to the third quarter. The company continues to engage actively with producers and has maintained a robust customer base, reflecting strong demand for its services.

While liquids volumes saw a slight decline, the company expects operational enhancements and strategic acquisitions to drive volume growth in the coming years. With over 100 DUCs (drilled but uncompleted wells) behind its systems, Summit is well-positioned to meet the anticipated volume growth, supported by five active rigs in operation.

In conclusion, Summit Midstream's 2024 results and the promising outlook for 2025 showcase its resilience and adaptability in a fluctuating market. With strategic acquisitions and growth initiatives underway, the company is poised to maximize value for its shareholders while meeting increasing energy demands from its customer base.

For further insights and updates, stakeholders are encouraged to join the earnings conference call scheduled for March 11, 2025, where management will discuss performance and future directions.