Summit Midstream (SMC) Q2 2024 earnings summary

Executive summary

• Completed conversion from MLP to C-Corp, officially trading on NYSE as of August 1, 2024, enhancing trading liquidity and broadening investor base.

• Closed $575M refinancing and $500M ABL facility, extending maturities to 2029 and improving financial flexibility.

• Completed major divestitures, including Summit Utica for $625M and Mountaineer Midstream for $70M, generating significant gains and cash inflows.

• Fully exited Northeast segment, focusing on core basins and ongoing Double E Pipeline commercialization.

• Board continued suspension of cash distributions; all units now held by Summit Midstream Corporation post-reorganization.

Financial highlights

• Q2 2024 net loss was $23.8M, with adjusted EBITDA of $43.1M and total revenues of $101.3M.

• Net income for H1 2024 was $109.1M, driven by asset sale gains.

• Aggregate average daily natural gas throughput for Q2 2024 was 716 MMcf/d, down from 1,207 MMcf/d year-over-year due to divestitures.

• Cash and equivalents at June 30, 2024 were $156M, up from $14M at year-end 2023.

• Operating cash flow for six months was $31M, down from $51.6M in the prior year.

Outlook and guidance

• 2024 pro forma adjusted EBITDA guidance reaffirmed at $170M–$200M.

• 2024 capital program expected at $30M–$40M, with $10M–$15M for maintenance and $5M for Double E equity investee.

• Anticipates increased activity and volume in Barnett and Rockies as natural gas prices recover in late 2024 and 2025.

• Management expects cash flow, cash balance, and credit facilities to be adequate for operations over the next twelve months.

• Potential reinstatement of sustainable distribution policy as deleveraging progresses.