Welcome to our dedicated page for Summit Midstream Partners, LP news (Ticker: SMLP), a resource for investors and traders seeking the latest updates and insights on Summit Midstream Partners, LP stock.
Summit Midstream Partners, LP (NYSE: SMLP) is a growth-oriented master limited partnership specializing in developing, owning, and operating midstream energy infrastructure assets strategically located in the core producing areas of unconventional resource basins across the United States. This includes primarily shale formations. SMLP offers natural gas, crude oil, and produced water gathering services through long-term, fee-based gathering and processing agreements with its customers.
SMLP operates across five unconventional resource basins:
- Appalachian Basin: Including the Marcellus and Utica shale formations in West Virginia and Ohio.
- Williston Basin: Including the Bakken and Three Forks shale formations in North Dakota.
- Fort Worth Basin: Including the Barnett Shale formation in Texas.
- Piceance Basin: Including the Mesaverde, Mancos, and Niobrara shale formations in Colorado and Utah.
- Denver-Julesburg Basin: Including the Niobrara and Codell shale formations in Colorado and Wyoming.
The company’s key focus is on delivering reliable and efficient midstream solutions, while their strategic locations enhance accessibility to various production sites. This allows SMLP to facilitate optimal transportation and processing of natural gas, crude oil, and produced water.
Recent achievements include the completion of the strategic alternatives process and the planned conversion to a C-Corp to enhance trading liquidity, expand the investor base, and optimize long-term tax consequences for unitholders. Key projects include the Double E Pipeline, a 135-mile interstate natural gas transmission pipeline from the Delaware Basin to the Waha Hub in Texas. Double E is a joint venture with ExxonMobil, ensuring a robust operational structure.
SMLP's financial stability is highlighted by substantial cash reserves and a fully undrawn $400 million ABL Revolver, which supports ongoing and future projects. The company remains committed to exploring strategic and commercial opportunities, particularly in the Permian and Rockies segments, to drive incremental free cash flow and enhance portfolio value through bolt-on acquisitions and organic growth initiatives.
Summit Midstream Partners, LP reported its Q1 2024 financial results, with net income of $132.9 million, adjusted EBITDA of $70.1 million, DCF of $32.5 million, and FCF of $17.2 million. Reduced net leverage ratio to 3.9x, connected 71 wells, and concluded the Double E open season successfully. Pro forma 2024 Adjusted EBITDA guidance of $170-200 million. Sold Northeast assets, revised focus on Rockies and Permian segments, maintaining liquidity and de-leveraging efforts.
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