Summit Midstream (SMC)
NYSE:SMC
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Summit Midstream
(NYSE:SMC)
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Rating:64Neutral
Price Target:
$32.00
▲(21.03% Upside)
Action:ReiteratedDate:03/17/26
The score is driven primarily by improving financial health (strong cash generation and meaningful deleveraging) but held back by ongoing net losses. Technicals are mildly supportive with neutral momentum, while valuation looks reasonable on P/E but lacks dividend support. Earnings-call commentary adds modest upside due to Double E commercial wins and a clearer long-term growth plan, tempered by still-elevated leverage and near-term segment headwinds.
Positive Factors
Consistent cash generation
Summit generates durable operating cash flows and materially improved free cash flow in 2025. Persistent positive cash conversion supports liquidity, funds growth projects and deleveraging, and provides a structurally stronger buffer against commodity cycles even while accounting earnings lag.
Negative Factors
Persistent net losses
Despite improving margins and revenue, recurring net losses hinder return generation and limit retained-earnings accumulation. Continued negative net income constrains ROE, limits ability to reinstate dividends, and means cash strength must be sustained to bridge to consistent profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
Summit generates durable operating cash flows and materially improved free cash flow in 2025. Persistent positive cash conversion supports liquidity, funds growth projects and deleveraging, and provides a structurally stronger buffer against commodity cycles even while accounting earnings lag.
Read all positive factors
Summit Midstream (SMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$545.80M
Dividend YieldN/A
Average Volume (3M)68.17K
Price to Earnings (P/E)―
Beta (1Y)0.38
Revenue Growth17.09%
EPS Growth72.64%
CountryUS
Employees272
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)-0.66
Shares Outstanding12,440,219
10 Day Avg. Volume79,063
30 Day Avg. Volume68,165
Financial Highlights & Ratios
PEG Ratio1.94
Price to Book (P/B)0.47
Price to Sales (P/S)0.58
P/FCF Ratio7.27
Enterprise Value/Market Cap2.57
Enterprise Value/Revenue2.49
Enterprise Value/Gross Profit6.51
Enterprise Value/Ebitda6.87
Forecast
1Y Price Target
$46.00Price Target Upside73.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-1.19
Revenue Forecast (FY)$591.30M
Summit Midstream Business Overview & Revenue Model
Company Description
Summit 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 ...
How the Company Makes Money
SMC primarily makes money by charging fees under contracts to gather and move natural gas (and associated volumes) from producer wellheads through its gathering pipelines and related midstream systems. Key revenue streams typically include: (1) Ga...
Summit Midstream Earnings Call Summary
Earnings Call Date:Mar 16, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call contained a clear predominance of positive strategic and financial developments: material new long-term commercial commitments on the Double E pipeline, a refinancing that simplifies capital structure and returns $85M to the parent (partially repaying preferred arrears), visible near-term well inventory (90 DUCs and 7 rigs), and a concrete growth thesis targeting >$100M of organic EBITDA expansion by 2030. Near-term headwinds were called out as well — segment-level declines (particularly Piceance and Midcon), liquidity/leverage still above the 3.5x target (~3.9x pro forma), no Piceance well connects in 2026, and timing risks from upstream consolidation — and management incorporated conservative risking into 2026 guidance. On balance, positives (commercial wins, refinancing, clear growth roadmap and upside from higher commodity prices) outweigh the operational and timing challenges.Positive Updates
Strong Adjusted EBITDA and Cash Flow
Q4 adjusted EBITDA of $58.6M and full-year 2025 adjusted EBITDA of $243.0M; Q4 distributable cash flow of $33.7M and Q4 free cash flow of $17.0M; demonstrates solid cash generation entering 2026.
Negative Updates
Segment EBITDA Pressure and QoQ Declines
Rockies adjusted EBITDA fell $1.2M (≈4.1% QoQ) to $27.8M; Piceance declined $2.5M (≈20% QoQ) to $10.0M; Midcon declined $2.1M (≈8.9% QoQ) to $21.5M. Permian segment remains relatively small in Q4 at $8.7M (up $0.1M, ≈1.2% QoQ) despite long-term growth prospects.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Adjusted EBITDA and Cash Flow
Q4 adjusted EBITDA of $58.6M and full-year 2025 adjusted EBITDA of $243.0M; Q4 distributable cash flow of $33.7M and Q4 free cash flow of $17.0M; demonstrates solid cash generation entering 2026.
Read all positive updates
Company Guidance
Summit guided 2026 adjusted EBITDA of $225M–$265M and total capital expenditures of $85M–$105M (broken into $35M–$50M base growth, $15M–$20M maintenance, and ~$35M contributions to the Double E JV funded by the new term loan), and expects 116–126 well connections in 2026 (90 DUCs, seven rigs running; ~80% crude‑oriented / ~20% gas), with Rockies 90–100 connects (roughly even DJ/Williston split; Williston 45–50 wells with nine wells gathering produced water at ~3:1 water:o il), Midcon 26 connects (9 Arkoma, 17 Barnett), and Piceance zero new connects; shortfall/MVC payments are expected to decline by ~$4M to ~$13M in 2026 from $17M in 2025 (and roll off for 2027), guidance assumes mid‑$60s WTI and ~$3.40/MMBtu gas (management noted current strip nearer $85/$3.70 could imply an incremental ~$5M–$10M of product margin), pro‑forma net debt is ~ $890M (net debt ~$930M pre‑pro forma) with ~3.9x leverage toward a 3.5x target, Double E throughput averaged ~861 MMcf/d in Q4 and now has ~1.6 Bcf/d contracted with potential expansion to ~2.4 Bcf/d that would lift Permian segment adj. EBITDA from ~$34M in 2025 toward ~$60M by 2029 (and to ~$90M+ by 2030 if fully commercialized), all contributing to management’s plan to add >$100M of organic adjusted EBITDA by 2030.Summit Midstream Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
63
Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 562.09M | 429.62M | 458.90M | 369.59M | 401.56M |
| Gross Profit | 149.65M | 113.01M | 122.94M | 89.56M | 245.41M |
| EBITDA | 203.73M | 250.53M | 225.86M | 81.17M | 187.22M |
| Net Income | -1.91M | -113.17M | -38.95M | -123.46M | -19.95M |
Balance Sheet | |||||
| Total Assets | 2.39B | 2.36B | 2.49B | 2.56B | 2.52B |
| Cash, Cash Equivalents and Short-Term Investments | 9.27M | 22.82M | 14.04M | 11.81M | 7.35M |
| Total Debt | 1.05B | 993.58M | 1.48B | 1.50B | 1.36B |
| Total Liabilities | 1.30B | 1.39B | 1.65B | 1.68B | 1.51B |
| Stockholders Equity | 687.48M | 467.79M | 718.56M | 764.82M | 904.36M |
Cash Flow | |||||
| Free Cash Flow | 44.55M | 8.16M | 58.00M | 68.27M | 140.07M |
| Operating Cash Flow | 133.59M | 61.77M | 126.91M | 98.74M | 165.10M |
| Investing Cash Flow | -163.15M | 487.06M | -74.76M | -226.56M | -165.73M |
| Financing Cash Flow | 24.04M | -540.28M | -49.04M | 121.77M | 4.66M |
Summit Midstream Technical Analysis
Neutral
26.44
Price Trends
29.96
Negative
28.13
Positive
25.46
Positive
Market Momentum
-0.34
Positive
37.71
Neutral
8.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMC, the sentiment is Neutral. The current price of 26.44 is below the 20-day moving average (MA) of 30.48, below the 50-day MA of 29.96, and above the 200-day MA of 25.46, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 37.71 is Neutral, neither overbought nor oversold. The STOCH value of 8.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.67B | 13.53 | 461.30% | 9.78% | -1.78% | 9.32% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $545.80M | -169.84 | 1.44% | ― | 17.09% | 72.64% | |
64 Neutral | $1.68B | 6.63 | 24.41% | ― | -38.82% | 92.56% | |
58 Neutral | $2.18B | 24.04 | -162.28% | 4.14% | -36.47% | -75.37% | |
58 Neutral | $107.01M | -7.02 | 18.35% | 0.77% | -0.58% | -587.83% |
* Energy Sector Average
SMC
Summit Midstream
28.78
1.56
5.73%
GEL
Genesis Energy
17.81
4.63
35.17%
MMLP
Martin Midstream
2.74
-0.08
-2.84%
NGL
NGL Energy Partners
13.54
10.42
333.97%
DKL
Delek Logistics
49.84
16.38
48.94%
PBT
Permian Basin
21.01
11.69
125.31%
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.