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Summit Midstream (SMC)
NYSE:SMC
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Summit Midstream
(NYSE:SMC)
Rating:48Neutral
Price Target:
$25.00
▲(15.53% Upside)
Summit Midstream (SMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$380.19M
Dividend YieldN/A
Average Volume (3M)67.84K
Price to Earnings (P/E)5.9
Beta (1Y)0.77
Revenue Growth2.91%
EPS Growth-432.03%
CountryUS
Employees272
SectorEnergy
Sector Strength43
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)-0.66
Shares Outstanding12,241,098
10 Day Avg. Volume70,789
30 Day Avg. Volume67,836
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap5.27
Enterprise Value/Revenue4.16
Enterprise Value/Gross Profit10.66
Enterprise Value/Ebitda25.80
Forecast
1Y Price Target
$25.00Price Target Upside15.53% Upside
Rating ConsensusHold
Number of Analyst Covering1
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 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
(Q1-2025)
| % Change Since: -10.95%|
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call highlights a robust liquidity position, strategic acquisitions, and solid performance in various segments. However, challenges such as declining crude prices and natural gas volumes in the Rockies present potential headwinds. Overall, the sentiment is predominantly positive with significant achievements outweighing the challenges.Q1-2025 Updates
Positive Updates
Strong Liquidity Position
Summit Midstream raised $250 million in senior secured second lien notes, positioning the company with over $350 million of liquidity.
Reinstatement of Preferred Stock Dividend
In March, the Board of Directors reinstated a cash dividend on the Series A preferred stock, indicating financial stability and progress towards reinstating common dividends.
Accretive Acquisition of Moonrise Midstream
Summit Midstream closed the acquisition of Moonrise Midstream, expanding their DJ Basin footprint and providing additional operating synergies.
Increase in Permian Basin Gas Volumes
The Double E pipeline in the Permian Basin saw average daily volumes grow by 8% quarter-over-quarter.
Mid-Con Segment Performance
The Mid-Con segment reported adjusted EBITDA of $22.5 million, a $9.6 million increase driven by an acquisition and increased volume throughput.
Rockies Segment Volume Growth
The Rockies segment saw an 8.8% increase in liquids volume throughput and higher freshwater sales.
Negative Updates
Decrease in Crude Oil Prices
A significant reduction in crude oil prices since March may impact activity levels in the second half of the year, particularly in the crude-oriented Rockies segment.
Natural Gas Volume Decline in Rockies
The Rockies segment experienced a 1.5% decrease in natural gas volume throughput due to natural production declines.
Lower-than-Expected BTU and NGL Content in Arkoma
The Arkoma wells underperformed in terms of BTU and NGL content, although initial production rates exceeded expectations.
Company Guidance
During the first quarter of 2025, Summit Midstream Corporation reported adjusted EBITDA of $57.5 million and capital expenditures of $20.6 million, primarily in the Rockies and Mid-Con segments. The company raised $250 million through senior secured second lien notes, boosting liquidity to over $350 million. In the Rockies segment, 30 new wells were connected, contributing to an adjusted EBITDA of $24.9 million. The Permian Basin segment saw an 8% increase in gas volumes on the Double E pipeline, while the Mid-Con segment benefited from the Tall Oak acquisition, achieving an adjusted EBITDA of $22.5 million. Despite a downturn in crude oil prices, the company reiterated its full-year adjusted EBITDA guidance of $245 million to $280 million and capital expenditures between $65 million and $75 million.Summit Midstream Financial Statement Overview
Summary
Summit Midstream faces financial challenges with declining revenue and persistent net losses. The high leverage increases financial risk, though cash flow from operations remains positive. Continued focus on cost management and revenue growth is essential for financial stability.Income Statement
The company shows declining revenue growth with a negative net profit margin, indicating challenges in converting revenue to profit. Gross profit margin is stable, but EBIT and EBITDA margins have shown a downward trend, reflecting operational inefficiencies or increased costs.45
Neutral
Balance Sheet
The debt-to-equity ratio is high, suggesting significant leverage which poses financial risk. The return on equity is negative due to consistent net losses, indicating inefficient utilization of equity. The equity ratio is moderate, providing some buffer against liabilities.38
Negative
Cash Flow
Operating cash flow is positive but declining, while free cash flow has turned negative recently, indicating potential liquidity concerns. The operating cash flow to net income ratio is strong due to non-cash charges affecting net income, but the free cash flow to net income ratio highlights issues with cash generation.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 | 187.99M | 113.01M | 122.94M | 89.56M | 125.39M | 142.66M |
| EBITDA | 77.70M | 250.53M | 193.32M | 164.61M | 159.10M | 378.87M |
| Net Income | -224.73M | -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 | 20.90M | 22.82M | 14.04M | 11.81M | 7.35M | 15.54M |
| Total Debt | 0.00 | 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 | 551.96M | 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
21.64
Price Trends
25.03
Negative
27.17
Negative
32.87
Negative
Market Momentum
-0.73
Positive
34.44
Neutral
16.57
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 21.64 is below the 20-day moving average (MA) of 24.80, below the 50-day MA of 25.03, and below the 200-day MA of 32.87, indicating a bearish trend. The MACD of -0.73 indicates Positive momentum. The RSI at 34.44 is Neutral, neither overbought nor oversold. The STOCH value of 16.57 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $50.80B | 11.83 | 31.38% | 7.70% | 4.67% | 2.07% | |
73 Outperform | $2.28B | 14.43 | 542.39% | 10.18% | -12.08% | 1.44% | |
65 Neutral | $14.83B | 8.53 | 3.10% | 5.45% | 4.59% | -62.54% | |
64 Neutral | $621.34M | ― | 8.32% | ― | -33.19% | 81.02% | |
58 Neutral | $1.69B | 19.14 | 13.89% | 5.82% | 3.74% | -4.49% | |
49 Neutral | $134.35M | 33.55 | -6.93% | 0.58% | -1.06% | -340.61% | |
48 Neutral | $380.19M | 5.86 | -25.85% | ― | 2.91% | -432.03% |
* Energy Sector Average
Performance Comparison
SMC
Summit Midstream
21.64
-13.14
-37.78%
GLP
Global Partners
50.98
12.94
34.02%
MMLP
Martin Midstream
3.43
-0.25
-6.79%
NGL
NGL Energy Partners
4.86
0.72
17.39%
DKL
Delek Logistics
43.51
8.99
26.04%
MPLX
MPLX
49.70
10.96
28.29%
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.