Summit Midstream (SMC) AI Stock Analysis

• Market Cap: $472.10M
• Dividend Yield: N/A
• Average Volume (3M): 63.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 17.09%
• EPS Growth: 72.64%
• Country: US
• Employees: 272
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): -0.13
• Shares Outstanding: 12,261,954
• 10 Day Avg. Volume: 62,639
• 30 Day Avg. Volume: 63,293
• PEG Ratio: -0.03
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 49.08
• Enterprise Value/Market Cap: 4.15
• Enterprise Value/Revenue: 3.72
• Enterprise Value/Gross Profit: 9.61
• Enterprise Value/Ebitda: 10.32
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 8
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $25.00 ▼(-0.83% Downside)

Summit Midstream's overall stock score reflects a mixed financial performance with positive revenue growth but significant profitability and leverage challenges. Technical indicators suggest bullish momentum, but valuation concerns persist due to a negative P/E ratio. The absence of a dividend yield further impacts the valuation score.

Positive Factors

Long-term Contracts

The extension of gathering agreements increases contract life, providing stable revenue and enhancing long-term cash flow predictability.

Revenue Growth

Consistent revenue growth indicates expanding operations and demand for services, supporting long-term business sustainability.

Cash Flow Generation

Improved cash generation capabilities enhance financial flexibility, enabling investment in growth opportunities and debt reduction.

Negative Factors

High Leverage

Significant leverage poses financial risk, potentially limiting the company's ability to invest in growth or weather economic downturns.

Profitability Challenges

Ongoing profitability issues highlight the need for cost control and efficiency improvements to achieve sustainable financial health.

Deferred Customer Development

Deferrals in development can impact future revenue streams and delay expected growth, affecting long-term business planning.

Summit Midstream Business Overview & Revenue Model

Company Description

Summit 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 Money

Summit 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 Financial Statement Overview

Summary

Summit Midstream's financial performance is mixed, with positive revenue growth and improved cash flow generation. However, challenges persist with profitability and high leverage, as indicated by a negative net profit margin and high debt-to-equity ratio. Strategic improvements in cost management and debt reduction are needed.

Income Statement

Summit Midstream's income statement shows a mixed performance. The TTM data indicates a gross profit margin of 25.52%, which is a slight decrease from previous years, suggesting some pressure on cost management. The net profit margin remains negative at -4.52%, indicating ongoing profitability challenges. However, there is a positive revenue growth rate of 9.22% in the TTM, showing some recovery in sales. The EBIT and EBITDA margins are relatively stable, but the negative net income highlights the need for improved cost control and revenue enhancement.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.56 in the TTM, indicating significant leverage and potential financial risk. The return on equity is negative at -2.62%, pointing to inefficiencies in generating returns for shareholders. The equity ratio stands at 22.86%, suggesting a moderate level of equity financing. Overall, the balance sheet shows a need for better capital management and reduction of debt levels to improve financial stability.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 53.63% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.53, suggesting that operating activities are generating sufficient cash relative to net income. However, the free cash flow to net income ratio is relatively low at 0.12, indicating that a significant portion of cash is being reinvested or used for debt servicing. Overall, cash flow management shows positive trends but requires careful monitoring to sustain growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	526.82M	429.62M	458.90M	369.59M	401.56M	383.47M
Gross Profit	204.02M	113.01M	122.94M	89.56M	245.41M	142.66M
EBITDA	189.97M	250.53M	225.86M	81.17M	187.22M	375.63M
Net Income	-14.85M	-113.17M	-38.95M	-123.46M	-19.95M	192.35M
Balance Sheet
Total Assets	2.41B	2.36B	2.49B	2.56B	2.52B	2.50B
Cash, Cash Equivalents and Short-Term Investments	28.45M	22.82M	14.04M	11.81M	7.35M	15.54M
Total Debt	1.08B	993.58M	1.48B	1.50B	1.36B	1.35B
Total Liabilities	1.32B	1.39B	1.65B	1.68B	1.51B	1.49B
Stockholders Equity	690.97M	467.79M	718.56M	764.82M	904.36M	1.01B
Cash Flow
Free Cash Flow	15.91M	8.16M	58.00M	68.27M	140.07M	155.46M
Operating Cash Flow	101.57M	61.77M	126.91M	98.74M	165.10M	198.59M
Investing Cash Flow	-316.08M	487.06M	-74.76M	-226.56M	-165.73M	-140.57M
Financing Cash Flow	98.59M	-540.28M	-49.04M	121.77M	4.66M	-79.40M

Summit Midstream Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMC, the sentiment is Positive. The current price of 25.21 is above the 20-day moving average (MA) of 23.51, above the 50-day MA of 22.30, and below the 200-day MA of 26.89, indicating a neutral trend. The MACD of 0.86 indicates Negative momentum. The RSI at 65.43 is Neutral, neither overbought nor oversold. The STOCH value of 84.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMC.

Summit Midstream Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DKL	73 Outperform	$2.42B	14.67	―	9.57%	-1.78%	9.32%
NGL	67 Neutral	$1.22B	―	12.40%	―	-38.82%	92.56%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SMC	51 Neutral	$472.10M	-7.52	-1.23%	―	17.09%	72.64%
GEL	49 Neutral	$1.90B	―	-11.88%	4.24%	-36.47%	-75.37%
MMLP	42 Neutral	$101.54M	―	―	0.77%	-0.58%	-587.83%

Summit Midstream Corporate Events

Summit Midstream Reports Q3 2025 Financial Results

Summit Midstream Corporation is a Houston-based company specializing in the development, ownership, and operation of midstream energy infrastructure assets, primarily focusing on natural gas, crude oil, and produced water gathering, processing, and transportation services in the United States. The company operates in several unconventional resource basins and has an equity investment in the Double E Pipeline, which provides interstate natural gas transportation services.

Summit Midstream’s Earnings Call: Mixed Sentiments and Future Prospects

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

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.