Summit Midstream (SMC) Q4 2025 earnings summary

Executive summary

• Achieved Q4 2025 Adjusted EBITDA of $58.6M and full-year Adjusted EBITDA of $243M, with strong commercial momentum, new long-term contracts, and refinancing activities supporting growth and deleveraging.

• Signed over 0.5 Bcf/d (540 MMcf/d) of new long-term take-or-pay agreements on Double E Pipeline, fully subscribing mainline capacity and supporting future EBITDA growth, with Permian segment Adjusted EBITDA projected to reach $60M by 2029.

• Successfully refinanced Double E with a $440M term loan, enabling an $85M distribution to repay $45M in preferred dividends and $40M in ABL borrowings, reducing leverage.

• Executed a new 10-year crude gathering agreement in Divide County/Williston, expanding dedicated acreage by 200,000+ acres and development inventory.

• Projecting over $100M of organic Adjusted EBITDA growth by 2030, driven by Permian and Rockies segments and Double E expansion.

Financial highlights

• Q4 2025 Adjusted EBITDA: $58.6M; full-year 2025 Adjusted EBITDA: $243M; Q4 distributable cash flow: $33.7M; free cash flow: $17M.

• Q4 2025 capital expenditures: $19M; full-year 2025 capex: $89M.

• Year-end net debt: $930M; pro forma net debt after ABL repayment: $890M; pro forma leverage: 3.9x.

• Available borrowing capacity at year-end: $387M; unrestricted cash at year-end: $9.3M.

• Q4 2025 revenue: $142.3M; full-year 2025 revenue: $562.1M.

Outlook and guidance

• 2026 Adjusted EBITDA guidance: $225M–$265M; capex: $85M–$105M, including $35M for Double E.

• Expecting 116–126 well connections in 2026, with 80% crude oil-oriented; natural gas throughput guidance: 875–920 MMcf/d; liquids: 65–90 Mbbl/d.

• Commodity price assumptions: mid-$60s/bbl oil, $3.40/MMBtu gas; guidance based on strip pricing as of February 2026.

• Permian segment Adjusted EBITDA projected to reach $60M by 2029, potentially $90M+ by 2030 if expansion is fully commercialized.

• Targeting long-term leverage of 3.5x and considering a return of capital program as leverage approaches target.