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Summit Midstream Corporation (SMC)
:SMC
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Summit Midstream
(NYSE:SMC)
54Neutral
Summit Midstream (SMC) vs. S&P 500 (SPY)
Market Cap
$668.04M
Dividend YieldN/A
Average Volume (3M)100.76K
Price to Earnings (P/E)5.9
Beta (1Y)1.15
Revenue Growth-6.38%
EPS Growth-104.51%
CountryUS
Employees272
SectorEnergy
Sector Strength85
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)-13.08
Shares Outstanding12,241,098
10 Day Avg. Volume128,890
30 Day Avg. Volume100,757
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.82
Price to Cash Flow (P/CF)-7.60
P/FCF Ratio5.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Summit Midstream Business Overview & Revenue Model
Company DescriptionSummit Midstream Corporation focuses on owning, developing, and operating midstream energy infrastructure assets primarily shale formations in the continental United States. It operates natural gas, crude oil, and produced water gathering systems in four unconventional resource basins, including the Williston Basin in North Dakota, which includes the Bakken and Three Forks shale formations; the Denver-Julesburg Basin that consists of the Niobrara and Codell shale formations in Colorado and Wyoming; the Fort Worth Basin in Texas, which comprises the Barnett Shale formation; and the Piceance Basin in Colorado, which includes the Mesaverde formation, as well as the emerging Mancos and Niobrara Shale formations. It serves natural gas and crude oil producers. Summit Midstream Corporation was founded in 2012 and is based in Houston, Texas.
How the Company Makes MoneySummit Midstream makes money through a fee-based revenue model primarily by providing essential midstream services to oil and gas producers. Its key revenue streams include gathering and processing fees for transporting and treating natural gas and crude oil, as well as produced water handling. The company's financial performance is supported by long-term contracts with take-or-pay provisions, which ensure stable cash flows regardless of fluctuations in energy production volumes. Additionally, strategic partnerships and joint ventures enhance Summit Midstream's ability to expand its infrastructure network and capture new business opportunities in the energy sector.
Summit Midstream Financial Statement Overview
Summary
Summit Midstream shows mixed financial health. Revenue and profit margins have fluctuated with operational challenges. The balance sheet improved through debt reduction, yet stability risks remain. Cash flow indicates efficiency but inconsistent profitability.Income Statement
Summit Midstream's revenue has fluctuated over the years, showing a decline from 2023 to 2024. Despite the gross profit margin improving in 2024, the net profit margin remains negative, highlighting operational challenges. EBIT and EBITDA margins are also negative, indicating potential inefficiencies in cost management.42
Neutral
Balance Sheet
The balance sheet shows a significant improvement in equity from negative in 2020 to positive in 2024, attributed to the elimination of total debt. The debt-to-equity ratio has improved, but stockholders' equity as a percentage of total assets decreased, reflecting potential stability risks.55
Neutral
Cash Flow
Operating cash flow remained positive, but free cash flow growth has been inconsistent. The company has managed to maintain a positive operating cash flow to net income ratio, suggesting efficient cash operations despite ongoing net losses.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 429.62M | 458.90M | 369.59M | 400.62M | 383.47M | Gross Profit |
| 297.69M | 122.94M | 89.56M | 125.39M | 142.66M | EBIT |
| -41.94M | 80.80M | 44.61M | 66.62M | 69.27M | EBITDA |
| 250.53M | 193.32M | 81.88M | 158.00M | 188.34M | Net Income Common Stockholders |
| -113.17M | -38.95M | -123.46M | -19.95M | 192.35M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 22.82M | 14.04M | 11.81M | 7.35M | 15.54M | Total Assets |
| 2.36B | 2.49B | 2.56B | 2.52B | 2.50B | Total Debt |
| 993.58M | 1.47B | 1.49B | 1.36B | 1.35B | Net Debt |
| -22.82M | 1.46B | 1.48B | 1.35B | 1.33B | Total Liabilities |
| 1.39B | 1.65B | 1.80B | 1.62B | 1.58B | Stockholders Equity |
| 467.79M | 718.56M | 764.82M | 904.36M | -186.07M |
| Cash Flow | Free Cash Flow | |||
| 8.16M | 58.00M | 68.27M | 140.07M | 155.46M | Operating Cash Flow |
| 61.77M | 126.91M | 98.74M | 165.10M | 198.59M | Investing Cash Flow |
| 487.06M | -74.76M | -226.56M | -165.73M | -140.57M | Financing Cash Flow |
| -540.28M | -49.04M | 121.77M | 4.66M | -79.40M |
Summit Midstream Technical Analysis
Negative
33.89
Price Trends
40.50
Negative
38.61
Negative
37.18
Negative
Market Momentum
-1.86
Positive
25.83
Positive
7.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMC, the sentiment is Negative. The current price of 33.89 is below the 20-day moving average (MA) of 36.98, below the 50-day MA of 40.50, and below the 200-day MA of 37.18, indicating a bearish trend. The MACD of -1.86 indicates Positive momentum. The RSI at 25.83 is Positive, neither overbought nor oversold. The STOCH value of 7.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMC.
Summit Midstream Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $54.72B | 12.71 | 31.78% | 6.68% | 4.30% | 10.45% | |
80 Outperform | $15.81B | 10.32 | 50.12% | 8.44% | 16.06% | 54.94% | |
77 Outperform | $64.20B | 14.57 | 13.40% | 6.87% | 5.20% | 18.35% | |
66 Neutral | $61.48B | 19.04 | 18.11% | 4.06% | 24.16% | -6.58% | |
61 Neutral | $6.72B | 63.80 | 7.26% | 3.75% | -5.94% | -63.96% | |
58 Neutral | $9.08B | 5.25 | -7.99% | 7.51% | 0.47% | -64.07% | |
54 Neutral | $668.04M | 5.86 | -14.87% | ― | -6.38% | -104.51% |
* Energy Sector Average
Performance Comparison
SMC
Summit Midstream
33.25
4.78
16.79%
ET
Energy Transfer
18.73
4.08
27.85%
OKE
Oneok
99.50
23.03
30.12%
WES
Western Midstream Partners
41.03
8.21
25.02%
MPLX
MPLX
53.65
14.96
38.67%
ENLC
EnLink Midstream
14.12
0.80
6.01%
Summit Midstream Earnings Call Summary
Earnings Call Date: Mar 10, 2025 | % Change Since: -12.45% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Positive
The call highlighted significant strategic achievements, including successful divestitures and acquisitions, strong financial performance, and a positive outlook for 2025. However, there were notable challenges, such as a net loss in the fourth quarter and volume declines in several segments. Despite these challenges, the strategic wins and positive guidance support a generally optimistic view.Highlights
Successful Strategic Transactions
Summit Midstream Corp. divested the Northeast segment for $700 million, reducing leverage from 5.4 times to 3.9 times and increasing the unit price from $17 to nearly $30. The company also refinanced the balance sheet, increasing financial flexibility and reducing interest expenses.
Record Share Price Growth
The execution of strategic plans resulted in more than doubling the share price by the end of 2024.
Strong Financial Performance
Full year 2024 adjusted EBITDA was $204.6 million, generating more than $85 million of distributable cash flow.
Acquisition and Expansion
Acquired Tallahok Midstream and Moonrise Midstream, expanding exposure to natural gas-oriented basins and increasing processing capacity in the DJ Basin.
Positive Outlook for 2025
Full year 2025 adjusted EBITDA guidance of $245 to $280 million, and expected significant free cash flow generation with over $100 million available for debt paydown.
Reinstatement of Preferred Dividend
Plans to reinstate the cash dividend on the corporate series A preferred beginning March 15, 2025.
Lowlights
Net Loss in Fourth Quarter
Reported a net loss of $24.8 million in the fourth quarter of 2024.
Challenges in the Rockies Segment
Adjusted EBITDA decreased by $1.6 million due to a 3% decline in liquids volumes from natural production declines.
Permian Basin Volume Decline
Decrease in adjusted EBITDA by $0.7 million due to lower volume throughput.
Peon Segment Volume Decline
Reported a decline due to a 2.5% decrease in volume throughput.
Company Guidance
During the fourth quarter 2024 earnings call, Summit Midstream Corp. provided guidance for 2025, anticipating adjusted EBITDA to range from $245 to $280 million, inclusive of the recent Moonrise acquisition. The company expects to connect 125 to 185 wells in 2025, with a capital expenditure budget set between $65 million and $75 million, including $15 million to $20 million for maintenance. The guidance reflects a potential 30% reduction in planned well connections due to timing risks, primarily affecting the third and fourth quarters. Summit Midstream aims to generate over $100 million in free cash flow, targeting a reduction in leverage to 3.5 times, and plans to use this cash flow for debt repayment. The company highlighted significant operational achievements in 2024, including doubling its share price and executing strategic acquisitions, which have bolstered its position in high-growth natural gas-oriented basins.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.