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Summit Midstream Corporation (SMC)
:SMC
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Summit Midstream
(NYSE:SMC)
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Rating:46Neutral
Price Target:
$21.00
▼(-1.04% Downside)
Summit Midstream's overall stock score reflects significant financial challenges, particularly in profitability and leverage, which are the most impactful factors. Technical indicators and valuation metrics also contribute to a cautious outlook. While there are some positive developments from the earnings call, they are not sufficient to offset the broader financial concerns.
Summit Midstream (SMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$397.85M
Dividend YieldN/A
Average Volume (3M)60.63K
Price to Earnings (P/E)―
Beta (1Y)0.75
Revenue Growth2.91%
EPS Growth-432.03%
CountryUS
Employees272
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)-0.66
Shares Outstanding12,241,864
10 Day Avg. Volume44,677
30 Day Avg. Volume60,627
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)0.86
Price to Sales (P/S)0.93
P/FCF Ratio49.08
Enterprise Value/Market Cap5.04
Enterprise Value/Revenue4.16
Enterprise Value/Gross Profit16.29
Enterprise Value/Ebitda15.95
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)8
Revenue Forecast (FY)N/A
Summit Midstream Business Overview & Revenue Model
Company DescriptionSummit Midstream (SMC) is a midstream energy company that focuses on the development, operation, and acquisition of natural gas gathering and processing systems, along with water solutions in key North American basins. The company primarily operates in the natural gas sector and provides essential services that facilitate the efficient transportation and processing of natural gas from production sites to end users. Summit Midstream's infrastructure includes pipelines, processing facilities, and water handling systems that support the increasing demand for natural gas and related products.
How the Company Makes MoneySummit Midstream generates revenue primarily through long-term contracts with natural gas producers, which provide stable cash flows. The company's revenue model is based on fee-for-service agreements, where it charges customers for the gathering, processing, and transportation of natural gas. Key revenue streams include gathering fees from the transportation of natural gas through its pipeline systems, processing fees from the treatment of raw gas at its processing facilities, and water services related to hydraulic fracturing operations. Significant partnerships with major exploration and production companies enhance SMC's market position and contribute to its earnings, as they ensure a steady volume of throughput and processing activities.
Summit Midstream Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While there were notable achievements such as the extension of gathering agreements and inclusion in major indices, there were significant challenges like the below-expectation adjusted EBITDA and deferred development by customers. The financial outlook remains cautiously optimistic despite current setbacks.Q2-2025 Updates
Positive Updates
10-Year Extension of Gathering Agreements
Summit executed a new 10-year extension of certain gathering agreements with a key customer in the Williston, increasing the weighted average contract life from 4 to 8 years.
Addition to Russell Indices
Summit was added to the Russell 3000, Russell 2000, and Russell Microcap indices, enhancing visibility among institutional investors and broadening the shareholder base.
New 10-Year Precedent Agreement in Permian
A new 10-year precedent agreement for 100 million a day of firm capacity on Double E was signed, contingent on the customer's final investment decision to build a new plant.
Volume Growth in Rockies Segment
The Rockies segment saw a 5.4% increase in liquids volume throughput and a 14% increase in natural gas volume throughput following the Moonrise Midstream business acquisition.
Incremental Development in Arkoma
An anchor customer is preparing a 20-well development program in the Arkoma, expected to begin in the fourth quarter and continue through mid-2026.
Negative Updates
Adjusted EBITDA Below Expectations
Second-quarter adjusted EBITDA was $61 million, below expectations due to underperformance of some wells in the DJ, delays in well completions, and lower realized commodity prices.
Deferral of Development by Customers
Some customers deferred development due to a drop in crude prices earlier this year, impacting the year's financial outlook.
Higher Operating and G&A Expenses in Rockies
Operating and general and administrative expenses increased by approximately $4.5 million in the Rockies segment, partly due to the Moonrise Midstream acquisition and onetime costs.
Decrease in Piceance Segment EBITDA
The Piceance segment recorded a decrease in adjusted EBITDA of $1.3 million relative to the first quarter, primarily due to higher operating expenses and a 1.1% decrease in volume throughput.
Company Guidance
In the second quarter of 2025, Summit Midstream Corporation reported an adjusted EBITDA of $61 million, which was slightly below expectations due to underperformance in certain wells and lower commodity prices. Capital expenditures totaled $26.4 million, including $5.5 million for maintenance. Despite challenges, the company executed a 10-year extension of gathering agreements in the Williston, improving contract life from 4 to 8 years. Summit's Rockies segment generated $25.2 million in adjusted EBITDA, with volume increases offset by lower commodity prices and increased expenses. The Permian Basin segment saw a slight EBITDA increase to $8.3 million due to higher throughput. The Piceance segment's EBITDA decreased to $10.5 million, while the Mid-Con segment increased to $24.9 million, driven by increased throughput and new well connections. The company remains optimistic about future volume recovery and development opportunities in 2026, particularly with a significant program in the Arkoma and new agreements in the Permian.Summit Midstream Financial Statement Overview
Summary
Summit Midstream is facing financial challenges, particularly in profitability and leverage. While there is some revenue growth, the company is struggling with significant net losses and high debt levels. Cash flow generation is moderate but insufficient to offset the negative net income.Income Statement
Summit Midstream's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue growth rate is positive at 8.77%, indicating a recovery from previous declines. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -46.59% and a negative EBIT margin. The gross profit margin is relatively stable at 38.97%, but the significant net losses are a concern.45
Neutral
Balance Sheet
The balance sheet reflects high leverage with a debt-to-equity ratio of 2.12 in the most recent annual report, indicating potential financial risk. The return on equity is negative, showing that the company is not generating profit from its equity base. The equity ratio is not provided, but the high debt levels suggest limited equity relative to assets.40
Negative
Cash Flow
Cash flow analysis reveals challenges in free cash flow growth, which is negative in recent periods. The operating cash flow to net income ratio is 0.53, indicating some ability to generate cash from operations despite net losses. However, the free cash flow to net income ratio is low, reflecting limited free cash flow relative to the net losses.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 482.35M | 429.62M | 458.90M | 369.59M | 400.62M | 383.47M |
| Gross Profit | 123.08M | 113.01M | 122.94M | 89.56M | 125.39M | 142.66M |
| EBITDA | 125.66M | 250.53M | 193.32M | 164.61M | 159.10M | 378.87M |
| Net Income | -217.95M | -113.17M | -38.95M | -123.46M | -19.95M | 192.35M |
Balance Sheet | ||||||
| Total Assets | 2.42B | 2.36B | 2.49B | 2.56B | 2.52B | 2.50B |
| Cash, Cash Equivalents and Short-Term Investments | 25.50M | 22.82M | 14.04M | 11.81M | 7.35M | 15.54M |
| Total Debt | 1.08B | 993.58M | 1.47B | 1.49B | 1.36B | 1.35B |
| Total Liabilities | 1.33B | 1.39B | 1.65B | 1.68B | 1.51B | 1.58B |
| Stockholders Equity | 688.91M | 467.79M | 718.56M | 764.82M | 904.36M | 922.89M |
Cash Flow | ||||||
| Free Cash Flow | 10.35M | 8.16M | 58.00M | 68.27M | 140.07M | 155.46M |
| Operating Cash Flow | 84.04M | 61.77M | 126.91M | 98.74M | 165.10M | 198.59M |
| Investing Cash Flow | -305.04M | 487.06M | -74.76M | -226.56M | -165.73M | -140.57M |
| Financing Cash Flow | 86.28M | -540.28M | -49.04M | 121.77M | 4.66M | -79.40M |
Summit Midstream Technical Analysis
Negative
21.22
Price Trends
21.94
Negative
22.89
Negative
28.27
Negative
Market Momentum
<0.01
Negative
45.85
Neutral
37.12
Neutral
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 21.22 is below the 20-day moving average (MA) of 21.40, below the 50-day MA of 21.94, and below the 200-day MA of 28.27, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 45.85 is Neutral, neither overbought nor oversold. The STOCH value of 37.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMC.
Summit Midstream Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.45B | 15.53 | ― | 9.96% | -1.78% | 9.32% | |
69 Neutral | $1.16B | ― | 12.40% | ― | -38.82% | 92.56% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
49 Neutral | $1.99B | ― | -11.88% | 4.09% | -36.47% | -75.37% | |
46 Neutral | $397.85M | -0.94 | -25.85% | ― | 2.91% | -432.03% | |
42 Neutral | $103.11M | ― | ― | 0.77% | -0.58% | -587.83% |
* Energy Sector Average
SMC
Summit Midstream
21.20
-14.80
-41.11%
GEL
Genesis Energy
16.13
5.41
50.45%
MMLP
Martin Midstream
2.61
-1.35
-34.14%
NGL
NGL Energy Partners
9.52
5.12
116.36%
DKL
Delek Logistics
44.66
10.35
30.16%
PBT
Permian Basin
19.39
7.48
62.80%
Summit Midstream Corporate Events
Summit Midstream’s Earnings Call: Mixed Sentiments and Future Prospects
Sep 1, 2025
Summit Midstream Corporation’s recent earnings call revealed a mixed sentiment among stakeholders. The company celebrated significant achievements, such as the extension of gathering agreements and inclusion in major indices, which were overshadowed by challenges including below-expectation adjusted EBITDA and deferred development by customers. Despite these setbacks, the financial outlook remains cautiously optimistic.
Summit Midstream Corporation’s Q2 2025 Financial Overview
Aug 13, 2025
Summit Midstream Corporation, a company specializing in the development, ownership, and operation of midstream energy infrastructure assets, primarily focuses on natural gas, crude oil, and produced water gathering, processing, and transportation services across various shale formations in the United States.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.