Summit Midstream Corporation - SMC STOCK NEWS

Summit Midstream (NYSE: SMC) has announced an offering of $250 million in additional 8.625% Senior Secured Second Lien Notes due 2029. These Additional Notes will be issued under the same indenture as the company's existing $575 million notes of the same type and will have substantially identical terms, except for the issue date and price. The net proceeds from this offering will be used to repay a portion of the outstanding borrowings under the company's asset-based lending credit facility and for general corporate purposes, including paying fees and expenses associated with the offering.

The Additional Notes will be guaranteed on a senior second-priority basis by the company and certain of its existing and future subsidiaries. Initially, they will be secured on a second-priority basis by the same collateral pledged for the benefit of the company's lenders under the ABL Facility. The offering is to qualified institutional buyers under Rule 144A and non-U.S. persons outside the United States in compliance with Regulation S under the Securities Act of 1933.

This press release does not constitute an offer to sell or a solicitation to buy any security, nor will there be any sale of the Additional Notes or related guarantees in any jurisdiction where such activities would be unlawful.

Summit Midstream (NYSE: SMC) has completed the acquisition of Tall Oak Midstream III from Tailwater Capital for $155 million in cash, 7.5 million common units, and associated Class B Common Stock, plus up to $25 million in contingent consideration through March 2026. The strategic acquisition rebalances Summit's portfolio to approximately 50% natural gas-oriented drilling activities. The transaction received strong shareholder approval with 99.8% of votes in favor. Pro forma total leverage ratio stands at 3.8x as of September 30, 2024.

Summit Midstream (NYSE: SMC) has issued a correction regarding the access link for its upcoming Virtual Shareholder Meeting. The special meeting of stockholders will be held virtually via live audio webcast on November 29, 2024, at 2:00 PM Central Time. Shareholders can access the meeting at https://web.lumiconnect.com/217371229 using the password 'summit2024'. Participants will have the ability to vote their shares electronically during the meeting.

Summit Midstream (NYSE: SMC) reported Q3 2024 financial results with a net loss of $197.5 million, including $142.6 million non-cash income tax expense. The company generated adjusted EBITDA of $45.2 million, representing 9% quarter-over-quarter growth, and Distributable Cash Flow of $22.1 million. Average daily natural gas throughput decreased 6.8% to 667 MMcf/d, while liquids volumes decreased 6.7% to 70 Mbbl/d. The company connected 38 wells during Q3 and maintains six active drilling rigs. SMC expects Q4 2024 adjusted EBITDA between $45-50 million and continues to progress with the Tall Oak Midstream III acquisition, expected to close in Q4 2024.

Summit Midstream (NYSE: SMC) has announced its schedule for the third quarter 2024 earnings release and conference call. The company will report its Q3 2024 operating and financial results on Tuesday, November 12, 2024, before NYSE trading opens. A conference call will follow at 10:00 a.m. Eastern on the same day. Additionally, SMC's senior management will participate in the 2024 Bank of America Leverage Finance Conference (December 3-4) and the 2024 Wells Fargo Midstream, Energy, & Utilities Symposium (December 10-11).

Tailwater Capital has announced an agreement to sell Tall Oak Midstream III to Summit Midstream (NYSE: SMC) for approximately $450 million. The deal includes $155 million in cash, about 7.5 million shares of SMC Class B common stock and Partnership common units (representing ~40% ownership), and up to $25 million in contingent cash. The transaction is expected to close in Q4 2024, subject to approvals. Tall Oak is a major gas gathering and processing system in the Arkoma Basin, with two 220 MMcf/d processing plants and extensive gathering lines. Upon closing, four Tailwater Capital-appointed directors will join Summit's Board.

Summit Midstream (NYSE: SMC) has announced a transformative acquisition of Tall Oak Midstream III in the Arkoma Basin. The deal, expected to close in Q4 2024, involves a mix of cash and equity consideration. Key highlights include:

- Expansion into the Arkoma Basin, adding 440 MMcf/d of processing capacity and over 400 miles of pipelines
- Reduction of Summit's pro forma leverage to 3.8x at closing
- Acceleration of capital return, allowing SMC to consider resuming dividends or launching a share buyback program in 2025
- Value accretive acquisition multiple of ~5.6x 2025E asset-level Adjusted EBITDA

The transaction positions Summit for growth, increases natural gas exposure, and enhances free cash flow generation. Tailwater Capital will gain a significant stake in the company, with four new directors joining Summit's board.

Summit Midstream (NYSE: SMC) reported a net loss of $23.8 million for Q2 2024, with adjusted EBITDA of $43.1 million, DCF of $11.7 million, and FCF of $2.7 million. Key developments include the connection of 34 wells and the successful refinancing of a $500 million credit facility and $575 million in senior secured notes, enhancing financial flexibility.

The company also completed a reorganization from an MLP to a C-, expected to deliver tax benefits and enhance trading liquidity. Average daily natural gas throughput decreased 46% to 716 MMcf/d, while liquid volumes increased 1.4% to 75 Mbbl/d. The Double E Pipeline saw an 18% increase in transported volumes, generating $7.8 million in adjusted EBITDA.

Summit exited the Northeast segment, impacting segment EBITDA. The company reiterated its 2024 adjusted EBITDA guidance of $170-$200 million. Capital expenditures totaled $10.5 million, primarily for pad connections in the Rockies.

Summit Midstream Partners, LP (NYSE: SMLP) announced the completion of its conversion from a master partnership to a C-, effective August 1, 2024. The new entity, Summit Midstream , will trade on the NYSE under the ticker symbol "SMC". This Corporate Reorganization, approved by unitholders on July 18, 2024, involves exchanging each of the 10,648,685 outstanding common units for one share of common stock in New Summit. Additionally, 65,508 9.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units will be exchanged for equivalent shares of Series A Preferred Stock. The Series A Preferred Stock will not be listed on any securities exchange.