#United States #Houston #Natural Gas #Summit Midstream #SMC

Summit Midstream Corporation: Third Quarter 2025 Financial Report

Summit Midstream Corporation (NYSE: SMC), based in Houston, Texas, has announced its financial results for the third quarter of 2025, showcasing a robust performance fueled by significant activity in its natural gas operations. The company reported a net income of $5.0 million, alongside an adjusted EBITDA of $65.5 million, marking a 7.2% increase from the previous quarter. This growth has been largely attributed to rising natural gas volumes, particularly in the Rockies segment.

Business Highlights

In the third quarter, Summit connected 21 wells and maintained an active customer base supported by five drilling rigs and over 90 developed unused connections (DUCs) across their systems. Notably, the Double E Pipeline achieved record transportation volumes, averaging 745 MMcf/d in September and contributing $8.7 million in adjusted EBITDA for the quarter.

The company has connected 109 wells year-to-date, with expectations of connecting around 50 additional wells in Q4 2025. Looking ahead, Summit anticipates a robust 2026, working in tandem with various customers on their development programs, projecting over 120 new well connects in the first half of that year.

Operational Insights

Heath Deneke, President and CEO of Summit, remarked, "The third quarter reflected our resilient growth strategy and operational excellence. The positive trajectory of adjusted EBITDA is a testament to the increasing natural gas volumes in the Rockies. As customer activity remains vigorous, we are well-positioned for sustained growth."

Despite delays in some customer activities, the company remains optimistic about achieving its adjusted EBITDA guidance for the year, which ranges between $245 million to $280 million. The solid performance of the Rockies segment, with a reported 7.5% increase in natural gas volumes quarter-over-quarter, reinforces Summit’s leading position in the midstream sector.

Segment Performance

Natural Gas Price-Driven Segments

The natural gas price-driven segments generated $36.1 million in combined adjusted EBITDA, exhibiting a 2.0% increase compared to Q2 2025. This was bolstered by new connections and improved volume throughput across the Arkoma and Barnett areas despite natural decline rates from existing wells.

Oil Price-Driven Segments

On the oil price-driven front, a combined adjusted EBITDA of $37.7 million was recorded, reflecting a 12.3% improvement relative to the previous quarter. The Rockies segment showcased significant growth, benefitting from peak production levels and increasing revenues from third-party systems.

Future Prospects

Looking towards the end of 2025 and into 2026, Summit has established strong visibility into expected customer engagement levels. As budgets are finalized, potential additions in the second half of 2026 could lead to a substantial increase in total activity across all segments. Investors and analysts can anticipate further updates during the upcoming Q4 earnings call scheduled for March 2026

Conclusion

The third quarter of 2025 has positioned Summit Midstream Corporation as a credible player in the midstream energy market, with strong financial performance and a clear growth trajectory initiated by increasing customer demand.

For more information about Summit Midstream Corporation and to access their investor resources, visit www.summitmidstream.com.