Summit Midstream (SMC) Q4 2025 earnings summary

Executive summary

• Achieved Q4 2025 Adjusted EBITDA of $58.6M and full-year 2025 Adjusted EBITDA of $243M, with strong operational and financial performance and significant new contract wins 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 expected to drive Permian segment Adjusted EBITDA to $60M by 2029.

• Launched a binding open season for a mainline compression project to expand Double E capacity by 50% to 2.4 Bcf/d.

• Executed a new 10-year crude gathering agreement in Divide/Williston County, expanding Rockies segment footprint by 200,000+ acres.

• Refinanced Double E with a $440M term loan, enabling an $85M distribution to repay $45M in preferred dividends and reduce debt by $40M.

Financial highlights

• Q4 2025 Adjusted EBITDA: $58.6M; full-year 2025: $243M.

• Q4 2025 Distributable Cash Flow: $33.7M; Free Cash Flow: $17M; Q4 2025 revenue: $142.3M.

• Capital expenditures: $19M in Q4, $89M for 2025.

• Net debt at year-end: $930M; pro forma $890M after ABL repayment; pro forma leverage: 3.9x.

• Cash flow available for distributions in 2025: $136.3M.

Outlook and guidance

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

• 116–126 well connections expected in 2026, 80% crude-oriented; throughput guidance: 2,165–2,360 MMcf/d.

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

• Guidance assumes Henry Hub at $3.40/MMBtu and WTI at $64/bbl.

• Targeting long-term leverage of 3.5x and considering reinstating common dividends within 12 months if leverage targets are met.