Summit Midstream (SMC) AI Stock Analysis

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Summit Midstream

(NYSE:SMC)

Rating:41Neutral

Price Target:

$22.50

▼(-10.96%Downside)

Summit Midstream's financial challenges, coupled with negative technical indicators and a poor valuation, result in a low overall stock score. Despite positive earnings call sentiment and strategic initiatives, these factors are insufficient to offset the current financial and market challenges.

Summit Midstream (SMC) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$474.21M

Dividend YieldN/A

Average Volume (3M)132.85K

Price to Earnings (P/E)5.9

Beta (1Y)0.76

Revenue Growth-4.69%

EPS Growth-418.50%

CountryUS

Employees272

SectorEnergy

Sector Strength56

IndustryOil & Gas Midstream

Share Statistics

EPS (TTM)-0.16

Shares Outstanding12,241,098

10 Day Avg. Volume264,310

30 Day Avg. Volume132,850

Financial Highlights & Ratios

PEG Ratio0.01

Price to Book (P/B)0.52

Price to Sales (P/S)0.00

P/FCF Ratio-12.85

Enterprise Value/Market Cap2.87

Enterprise Value/Revenue0.76

Enterprise Value/Gross Profit12.11

Enterprise Value/Ebitda2.84

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 primarily through long-term, fee-based agreements with producers in the oil and gas industry. The company's revenue model is built around gathering, transporting, and processing hydrocarbons and produced water for its customers, who are typically exploration and production companies. Summit Midstream earns fees for each unit of volume transported or processed through its infrastructure, providing stable and predictable cash flows. The company benefits from significant partnerships and agreements with major producers in the basins where it operates, which contribute to its earnings by ensuring a steady flow of hydrocarbons that need to be gathered and processed. Additional revenue streams may include ancillary services related to the maintenance and operation of its infrastructure assets.

Summit Midstream Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: -10.68%|

Next Earnings Date:Aug 07, 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

Neutral

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.

Balance Sheet

Negative

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.

Cash Flow

Neutral

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	443.44M	429.62M	458.90M	369.59M	400.62M	383.47M
Gross Profit	112.41M	113.01M	122.94M	89.56M	125.39M	142.66M
EBITDA	91.18M	159.03M	193.32M	164.61M	159.10M	378.87M
Net Income	-241.47M	-113.17M	-38.95M	-123.46M	-19.95M	192.35M
Balance Sheet
Total Assets	2.55B	2.36B	2.49B	2.56B	2.52B	2.50B
Cash, Cash Equivalents and Short-Term Investments	22.63M	22.82M	14.04M	11.81M	7.35M	15.54M
Total Debt	1.48B	993.58M	1.47B	1.49B	1.36B	1.35B
Total Liabilities	1.80B	1.39B	1.65B	1.68B	1.51B	1.58B
Stockholders Equity	749.70M	467.79M	718.56M	764.82M	904.36M	922.89M
Cash Flow
Free Cash Flow	-23.63M	8.16M	58.00M	68.27M	140.07M	155.46M
Operating Cash Flow	34.19M	61.77M	126.91M	98.74M	165.10M	198.59M
Investing Cash Flow	-214.66M	487.06M	-74.76M	-226.56M	-165.73M	-140.57M
Financing Cash Flow	-137.96M	-540.28M	-49.04M	121.77M	4.66M	-79.40M

Summit Midstream Technical Analysis

Technical Analysis Sentiment

Negative

Last Price25.27

Price Trends

50DMA

26.89

Negative

100DMA

31.98

Negative

200DMA

34.46

Negative

Market Momentum

MACD

-0.61

Negative

RSI

46.11

Neutral

STOCH

21.68

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 25.27 is below the 20-day moving average (MA) of 25.43, below the 50-day MA of 26.89, and below the 200-day MA of 34.46, indicating a bearish trend. The MACD of -0.61 indicates Negative momentum. The RSI at 46.11 is Neutral, neither overbought nor oversold. The STOCH value of 21.68 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

Overall Rating

UnderperformOutperform

Sector (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPLX	81 Outperform	$51.85B	11.73	32.54%	7.49%	5.53%	11.29%
DKL	72 Outperform	$2.34B	14.65	542.39%	10.15%	-8.79%	7.75%
GLP	67 Neutral	$1.78B	16.64	16.23%	5.68%	6.04%	18.28%
Sector *	52 Neutral	C$2.91B	-0.93	-3.26%	6.13%	2.20%	-43.43%
MMLP	50 Neutral	$118.73M	33.55	-6.93%	0.66%	-2.03%	-348.43%
NGL	44 Neutral	$559.73M	―	4.63%	―	-19.76%	-323.41%
SMC	41 Neutral	$474.21M	5.86	-28.13%	―	-4.69%	-418.50%

* Energy Sector Average

Performance Comparison

SMC

Summit Midstream

25.27

-9.27

-26.84%

GLP

Global Partners

52.41

9.97

23.49%

MMLP

Martin Midstream

3.04

-0.19

-5.88%

NGL

NGL Energy Partners

4.33

-0.43

-9.03%

DKL

Delek Logistics

43.76

7.86

21.89%

MPLX

51.05

11.78

30.00%

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.Date of analysis: Jul 02, 2025