Summit Midstream Corporation

What they do

SMC owns and operates midstream energy infrastructure in the Williston Basin, DJ Basin, Barnett Shale, Piceance Basin, Permian Basin and Arkoma Basin, with business conducted through operating subsidiaries under Summit Holdings. It generates most revenue from fee-based gathering, compression, treating and processing services under long-term contracts that include areas of mutual interest covering roughly 5.9 million surface acres and minimum volume commitments. It also holds a 70% interest in the 1.6 Bcf/d Double E interstate pipeline in the Delaware Basin, operated by SMC with ExxonMobil a 30% partner.

Revenue drivers

• Rockies segment — Gathering, compression, treating and processing in the Williston and DJ basins, plus condensate sales. Segment Adjusted EBITDA was $30.4 million in Q2 2026, the largest contributor, with eight rigs running behind the system.
• Mid-Con segment — Primarily Barnett Shale and Arkoma gathering, including natural gas volumes retained and sold from certain customers. Segment Adjusted EBITDA was $21.4 million in Q2 2026 on 523 MMcf/d of natural gas throughput, up 9.9% sequentially.
• Piceance segment — Gathering and processing in the Piceance Basin with percentage-of-proceeds exposure to gas and NGL sales. Segment Adjusted EBITDA was $8.7 million in Q2 2026, down $0.9 million from Q1 2026.
• Permian and Double E — Permian segment Adjusted EBITDA was $9.4 million in Q2 2026; the Double E joint venture averaged 859 MMcf/d and contributed $9.4 million of Adjusted EBITDA net to SMC in the quarter.

Recent performance

Second quarter 2026 net income was $4.6 million with Adjusted EBITDA of $60.7 million, up 12% versus Q1 2026, and Distributable Cash Flow of $36.8 million. Consolidated revenue for the quarter was $155.0 million. Wholly owned natural gas throughput rose 3.3% quarter-over-quarter to 899 MMcf/d and liquids volumes rose 6.3% to 68 Mbbl/d, with 36 new well connections completed. Full-year 2025 revenue was $562.1 million and net income was $3.0 million, versus a $113.2 million loss in 2024. Operating cash flow was $133.6 million in 2025.

Strategy

Management states its objective is maximizing cash flow and cash flow stability while growing prudently, and says it intends to reduce indebtedness with free cash flow and use opportunistic acquisitions or divestitures to build long-term value. The company completed the approximately $90.0 million Moonrise Midstream acquisition on March 10, 2025. It emphasizes fee-based, long-term contracts with minimal direct commodity price exposure, though commodity-linked activities were about 48% of 2025 revenues. It also prioritizes continued commercial expansion, including a Double E mainline compression expansion open season extended through the end of August 2026. The board established a $35 million stock repurchase program in the second quarter of 2026.

Risks

• Preferred dividends and no common dividend — Accrued and unpaid dividends on the Series A Preferred Stock totaled $46.6 million as of December 31, 2025, and no common stock dividend has been paid since suspension on May 3, 2020.
• Commodity price exposure — About 48% of 2025 revenues came from activities directly exposed to commodity prices, including gas and NGL sales under percentage-of-proceeds arrangements and condensate sales.
• Customer drilling activity — Persistently low commodity prices could cause customers to delay or cancel drilling and completion or shut in production, reducing gathered volumes; MVCs totaled only 0.1 Tcfe with a weighted-average remaining life of 2.0 years as of December 31, 2025.
• Leverage — Long-term debt was $1.24 billion against $598.4 million of shareholder equity and $21.0 million of cash at June 30, 2026, and management states outstanding indebtedness currently restricts the payment of cash dividends.

Outlook

Management tightened 2026 Adjusted EBITDA guidance to $235 million to $255 million and raised total capital expenditures, including Double E, to $100 million to $120 million for high-returning growth projects in the Rockies and Permian segments. It cited six rigs running in the Williston Basin, approximately 75 DUCs across the footprint, and roughly 30 incremental Williston well connections identified beyond the original plan, expected to connect primarily in the fourth quarter of 2026. On Double E, management said it expects to be in a position to make a final investment decision on the mainline compression expansion prior to the conclusion of the extended open season.