Summit Midstream (SMC) Q4 2024 earnings summary

Executive summary

• Completed strategic alternatives review, divested Northeast segment for $700M, reducing leverage and boosting unit price.

• Refinanced balance sheet, upsized to $500M credit facility, converted to a C-corp, improving financial flexibility and trading liquidity.

• Acquired Tall Oak Midstream and Moonrise Midstream, expanding scale and processing capacity in key basins.

• Share price more than doubled in 2024, with continued momentum into 2025.

• Reinstated Series A Preferred Stock dividend effective March 2025; common dividend remains suspended.

Financial highlights

• Q4 2024 adjusted EBITDA: $46.2M; full year 2024 adjusted EBITDA: $204.6M (includes $30.6M from divested Northeast segment).

• Q4 2024 net loss: $24.8M; full-year net loss: $113.2M.

• Q4 2024 distributable cash flow: $22.1M; full-year 2024 DCF: $88.7M.

• Q4 2024 capital expenditures: $15.8M; full-year 2024 capex: $53.6M.

• Net debt (pro forma for January add-on): ~$852M; available borrowing capacity: ~$444M.

Outlook and guidance

• 2025 adjusted EBITDA guidance: $245M–$280M, inclusive of Moonrise acquisition.

• 2025 well connects expected: 125–185, with 25% gas-oriented and 75% oil-oriented.

• 2025 capital guidance: $65M–$75M (includes $15M–$20M maintenance, ~$20M one-time expenses).

• Free cash flow in 2025 expected to exceed $100M, supporting debt paydown and leverage target of 3.5x.

• Natural gas throughput guidance: 900–965 MMcf/d; liquids: 65–75 Mbbl/d.