Summit Midstream (SMC) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $183.0 million and net income was $15.9 million; Adjusted EBITDA was $70.7 million, up 16% QoQ and from $65.5 million YoY.

• Distributable Cash Flow was $32.6 million and Free Cash Flow was $5.2 million; average gas throughput rose 5.9% QoQ to 952 MMcf/d and liquids throughput rose 39.7% to 95 Mbbl/d.

• Customer development and organic projects are driving growth expectations; management raised FY2026 Adjusted EBITDA guidance and expects 200–250 well connections in 2027.

Financial highlights

• Q3 revenue increased to $183.0 million from $146.9 million YoY; net income rose to $15.9 million from $5.0 million, and diluted EPS was $0.58 versus a $0.13 loss.

• Q3 DCF was $32.6 million versus $36.7 million YoY; FCF was $5.2 million versus $16.7 million. Operating cash flow was $5.5 million versus $26.7 million.

• Q3 capital expenditures were $21.2 million, including $4.7 million of maintenance CapEx; nine-month cash CapEx was $65.5 million, including $12.5 million of maintenance.

• Natural gas, NGL and condensate sales rose to $98.1 million from $71.1 million; gathering fees were $75.9 million versus $65.4 million.

Outlook and guidance

• FY2026 Adjusted EBITDA guidance rose to $250 million–$260 million from $235 million–$255 million; CapEx guidance remains $100 million–$120 million, with spending expected near the high end.

• Year-end 2026 net leverage is expected to be ~3.6x at the guidance midpoint; management expects 200–250 well connections in 2027 and meaningful YoY volume and EBITDA growth.

• Several-year Adjusted EBITDA growth could reach a mid-to-high-teens CAGR; excluding organic projects, management cited high-single-digit to low-double-digit growth.

• Double E’s compression expansion reached FID, is targeted online by year-end 2028 and is expected to increase capacity ~50%, from ~1.6 Bcf/d to ~2.4 Bcf/d.

• Available liquidity, internal cash flows and credit facilities are expected to fund operations for the next 12 months and, based on current expectations, the long term.