Summit Midstream (SMC)
NYSE:SMC
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Summit Midstream
(NYSE:SMC)
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Rating:51Neutral
Price Target:
$27.00
▲(2.12% Upside)
Action:Reiterated
Date:06/02/26
The score is held back primarily by leveraged financials with ongoing net losses and uneven free-cash-flow stability, alongside weak technical momentum (below key moving averages with negative MACD). Partially offsetting these are a constructive earnings outlook with reiterated EBITDA guidance and operational/contracting progress, plus a positive incremental catalyst from the newly announced share repurchase authorization.
Positive Factors
Revenue Momentum
A >100% TTM revenue increase with operating margins supported by gross profit and EBITDA indicates the core gathering and compression business is scaling. Durable volume growth and margin support improve cash generation potential and strengthen the company's ability to fund organic projects and contractual obligations over the medium term.
Negative Factors
High Leverage
Leverage above 2x debt-to-equity constrains capital flexibility, raises refinancing and covenant risk, and limits the company’s ability to pursue large organic or bolt-on opportunities without additional financing. Persistently high leverage can delay dividend reinstatement and increase sensitivity to cash-flow volatility.
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Positive Factors
Negative Factors
Revenue Momentum
A >100% TTM revenue increase with operating margins supported by gross profit and EBITDA indicates the core gathering and compression business is scaling. Durable volume growth and margin support improve cash generation potential and strengthen the company's ability to fund organic projects and contractual obligations over the medium term.
Read all positive factors
Summit Midstream (SMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$605.08M
Dividend YieldN/A
Average Volume (3M)68.17K
Price to Earnings (P/E)―
Beta (1Y)0.30
Revenue Growth28.21%
EPS Growth92.42%
CountryUS
Employees272
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)-1.88
Shares Outstanding13,814,286
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 Cap2.62
Enterprise Value/Revenue2.79
Enterprise Value/Gross Profit7.37
Enterprise Value/Ebitda8.12
Forecast
1Y Price Target
$46.00Price Target Upside73.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-1.09
Revenue Forecast (FY)$584.90M
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:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed a generally constructive tone: management reported Q1 adjusted EBITDA in line with expectations, highlighted contract wins (Double E), strong operational momentum in the Rockies and Arkoma dry-gas outperformance, and completed key balance sheet actions (preferred dividend payment, $42M equity placement, refinancing). Headwinds include localized underperformance in Arkoma, Piceance shut-ins (~20 MMcf/d), modest free cash flow relative to growth ambitions, and remaining execution risk for the Double E expansion. On balance the positives—contracting momentum, macro tailwinds, balance-sheet progress, and a clear path to midpoint guidance—outweigh the operational and market-specific challenges discussed.Positive Updates
Quarterly Adjusted EBITDA In Line with Expectations
Reported Q1 2026 adjusted EBITDA of $54.2 million, generally in line with company expectations and supporting the view that results should trend toward the midpoint of 2026 guidance ($225M-$265M, midpoint $245M).
Negative Updates
Mid-Con/Arkoma Volume Underperformance
Mid-Con adjusted EBITDA declined to $19.3 million (down $2.1 million sequentially) driven primarily by two underperforming pads in Arkoma drilled at the edges of acreage; overall Q1 underperformance partially offset by Rockies gains.
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Q1-2026 Updates
Positive
Negative
Quarterly Adjusted EBITDA In Line with Expectations
Reported Q1 2026 adjusted EBITDA of $54.2 million, generally in line with company expectations and supporting the view that results should trend toward the midpoint of 2026 guidance ($225M-$265M, midpoint $245M).
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Company Guidance
Management reiterated 2026 adjusted EBITDA guidance of $225–$265 million (midpoint $245M) and said Q1 results—$54.2M adjusted EBITDA, $26.9M distributable cash flow, $11.4M free cash flow—keep the company tracking toward that midpoint given current activity and recent well performance; Q1 total capex was $19.3M (including $3.7M maintenance). Operationally they connected ~307 wells in Q1 (including the first four Williston wells), expect ~40 well‑connects in Q2 (≈20 in Mid‑Con), have ~5 rigs running, roughly 80 DUCs in Mid‑Con and ~60 DUCs in the Rockies, and see meaningful volume upside into H2; Double E is now contracted for just over 1.7 Bcf/d after a new 100 MMcf/d 10‑year take‑or‑pay (starting 2027), is pursuing an ~800 MMcf/d midpoint compressor expansion (open season) that management says could grow Double E EBITDA from roughly $35M to the mid‑$60M range and to ~$90M with expansion. Balance sheet moves include $43.4M unrestricted cash, $116M revolver draws, ≈$381M available capacity (after $2.7M LC), payment of $45M accrued Series A preferred dividends, a $42M private placement, and a Permian transmission refinancing; longer‑term targets include >$100M of organic EBITDA growth by 2030, a 3.5x leverage target and reinstatement of a common dividend.Summit Midstream Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
42
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 568.54M | 562.09M | 429.62M | 458.90M | 369.59M | 401.56M |
| Gross Profit | 214.85M | 149.65M | 113.01M | 122.94M | 89.56M | 245.41M |
| EBITDA | 195.12M | 203.73M | 250.53M | 225.86M | 81.17M | 187.22M |
| Net Income | -7.78M | -1.91M | -113.17M | -38.95M | -123.46M | -19.95M |
Balance Sheet | ||||||
| Total Assets | 2.41B | 2.39B | 2.36B | 2.49B | 2.56B | 2.52B |
| Cash, Cash Equivalents and Short-Term Investments | 49.52M | 9.27M | 22.82M | 14.04M | 11.81M | 7.35M |
| Total Debt | 1.27B | 1.05B | 993.58M | 1.48B | 1.50B | 1.36B |
| Total Liabilities | 1.49B | 1.30B | 1.39B | 1.65B | 1.68B | 1.51B |
| Stockholders Equity | 595.82M | 687.48M | 467.79M | 718.56M | 764.82M | 904.36M |
Cash Flow | ||||||
| Free Cash Flow | -11.75M | 44.55M | 8.16M | 58.00M | 68.27M | 140.07M |
| Operating Cash Flow | 124.44M | 133.59M | 61.77M | 126.91M | 98.74M | 165.10M |
| Investing Cash Flow | -89.42M | -163.15M | 487.06M | -74.76M | -226.56M | -165.73M |
| Financing Cash Flow | -15.10M | 24.04M | -540.28M | -49.04M | 121.77M | 4.66M |
Summit Midstream Technical Analysis
Negative
26.44
Price Trends
30.25
Negative
29.70
Negative
26.52
Positive
Market Momentum
-0.40
Positive
45.51
Neutral
48.68
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 26.44 is below the 20-day moving average (MA) of 30.32, below the 50-day MA of 30.25, and below the 200-day MA of 26.52, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 45.51 is Neutral, neither overbought nor oversold. The STOCH value of 48.68 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | $2.76B | 16.12 | 1917.10% | 9.78% | 13.04% | 6.21% | |
57 Neutral | $2.06B | ― | 38.96% | ― | -40.00% | -449.42% | |
55 Neutral | $1.90B | 52.44 | 16.91% | 4.14% | -35.30% | 88.99% | |
51 Neutral | $605.08M | -46.31 | -1.23% | ― | 28.21% | 92.42% | |
51 Neutral | $101.33M | -4.85 | 24.10% | 0.77% | -1.12% | -115.63% |
* Energy Sector Average
SMC
Summit Midstream
29.23
4.19
16.73%
GEL
Genesis Energy
15.19
0.24
1.61%
MMLP
Martin Midstream
2.51
-0.50
-16.53%
NGL
NGL Energy Partners
16.28
12.89
380.24%
DKL
Delek Logistics
51.14
12.70
33.02%
PBT
Permian Basin
28.91
18.20
169.91%
Summit Midstream Corporate Events
Business Operations and StrategyStock Buyback
Summit Midstream Launches First $35 Million Share Repurchase
Positive
Jun 1, 2026
On June 1, 2026, Summit Midstream Corporation announced that its board had authorized the company’s inaugural stock repurchase program, allowing the buyback of up to $35 million of its outstanding common shares. Management said the move refl...
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.