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.
Company Overview
Summit Midstream Partners, LP (SMLP) is a growth-oriented limited partnership dedicated to developing, owning, and operating midstream energy infrastructure assets. The company is strategically positioned in the core producing areas of unconventional resource basins within the continental United States, with a focus on the efficient gathering, processing, and transportation of natural gas, crude oil, and produced water. SMLP operates predominantly through long-term, fee-based agreements, securing stable revenue streams while addressing the operational needs of energy producers in high-potential shale formations.
Business Model and Operational Focus
SMLP specializes in midstream energy services that are essential to the downstream production and distribution chain. Its business model is anchored on fee-based arrangements that provide reliable income while ensuring that the company maintains a robust infrastructure network. The emphasis on long-term contracts enables SMLP to plan its capital expenditures strategically, maintaining and expanding its asset base in critical basins such as:
- Appalachian Basin: Serving major shale formations with comprehensive gathering and processing capabilities.
- Williston Basin: Operating in regions with prolific Bakken and Three Forks shale activity.
- Denver-Julesburg Basin: Supporting energy production in both dry and liquids-rich gas windows.
- Fort Worth and Piceance Basins: Delivering specialized services in areas notable for their extensive shale reserves.
The company leverages its expertise to manage a diversified portfolio of midstream assets, ensuring operational integrity and efficiency through continuous investment in technology and infrastructure management practices.
Strategic Positioning and Industry Insights
Within the competitive midstream sector, SMLP distinguishes itself through strategic asset placements in high-demand unconventional basins. The company is committed to maintaining strong operational performance by aligning its services with industry standards in safety, efficiency, and regulatory compliance. By opting for structures that support rigorous asset management and by refining its portfolio through strategic divestitures and capital allocation, SMLP has positioned itself to serve a critical role in the energy supply chain.
Key Service Offerings
SMLP provides an integrated suite of midstream services that includes:
- Natural Gas Gathering: Collecting and transporting natural gas from production sites to processing facilities.
- Crude Oil Logistics: Facilitating the efficient movement of crude oil through robust pipeline networks and processing systems.
- Produced Water Management: Offering environmentally responsible solutions for the handling and treatment of produced water.
Operational Excellence and Asset Management
At the core of SMLP's operational strategy is a commitment to excellence in asset management. The company utilizes industry-specific technology to monitor, maintain, and optimize its midstream network. This approach not only safeguards the integrity of its infrastructure but also enhances service reliability for its contractual counterparties. The emphasis on sustainable operational practices and proactive maintenance strategies further underscores its ability to serve as a dependable service provider in the midstream energy space.
Expertise and Industry Leadership
SMLP demonstrates deep industry knowledge by consistently aligning its operations with the evolving demands of the energy sector. By structuring contracts that focus on fee-based revenue models and ensuring strategic asset deployment, the company addresses critical elements of midstream transportation and processing. Its professional management team brings decades of experience in energy infrastructure, contributing to a framework of trust and transparency that benefits both its operations and its unitholders.
Conclusion
In summary, Summit Midstream Partners, LP stands as an exemplary midstream infrastructure operator with a well-balanced focus on strategic asset management, steady fee-based revenue generation, and operational excellence. The company remains integral to the functioning of the unconventional energy sector by providing essential services that support crude oil, natural gas, and produced water logistics. Its strong presence in key US energy basins and commitment to best industry practices make it a pivotal entity for understanding the dynamics of midstream energy infrastructure.
Summit Midstream Partners, LP (SMLP) reported a net loss of $19.7 million for Q2 2021, with adjusted EBITDA reaching $62.1 million and DCF at $46.5 million. The loss includes $31.5 million in non-cash charges, primarily from a 2015 pipeline incident and warrant exercises. Natural gas throughput increased by 7.1% to 1,441 MMcf/d. The company is advancing a refinancing plan for $1.1 billion in debt maturities and expects to launch a new high-yield notes offering soon. Construction of the Double E Pipeline is ahead of schedule, projected to complete by Q4 2021, with a budget under $425 million.
Summit Midstream Partners, LP (SMLP) announced agreements to resolve government investigations related to a 2015 produced water discharge into Blacktail Creek, North Dakota. The Global Settlement includes an aggregate penalty of $36.3 million, covering civil and criminal penalties, with payments spread over several years. The company committed to improving pipeline management practices. CEO Heath Deneke highlighted the company's investment of $75 million in remediation and preventative measures since discovering the spill. The settlement awaits court approval.
Summit Midstream Partners, LP (NYSE: SMLP) will report its second quarter 2021 operating and financial results on August 6, 2021, before NYSE trading. A conference call is scheduled for 10:00 a.m. Eastern on the same day to discuss these results. The Partnership focuses on midstream energy infrastructure in six basins across the U.S., including the Appalachian and Permian Basins, and has significant equity investments in natural gas transmission projects. Investors can access the call through SMLP's website.
Summit Midstream Partners, LP (NYSE: SMLP) has raised its full-year 2021 financial guidance, projecting adjusted EBITDA between $225 million and $240 million, a 5.7% increase from prior estimates. The company also anticipates a reduction in total indebtedness by approximately $82 million by June 30, 2021. Year-to-date results have exceeded expectations due to increased customer activity and robust expense management. Although 2021 may be a trough year for well connect activity, management is optimistic about improving commodity prices and operational performance.
Summit Midstream Partners reported net income of $9 million and adjusted EBITDA of $60.4 million for Q1 2021. Natural gas throughput averaged 1,346 MMcf/d, down 6.3% from Q4 2020, while liquids throughput fell 8.5%. The decline in volumes is attributed to production declines and severe winter weather. The company achieved approximately $4.9 million in operating expense savings. SMLP paid down $55 million of its revolving credit facility, representing 40% of its 2021 debt reduction target. The launch of a Series A preferred equity exchange reduced outstanding debts and eliminated $2.5 million in unpaid distributions.
Summit Midstream Partners, LP (NYSE: SMLP) announced the final results of its Exchange Offer for 9.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units, which ended on April 13, 2021. A total of 18,662 Series A Preferred Units were tendered, with all accepted for exchange. Consequently, approximately 559,860 Common Units will be issued to the holders of these tendered Preferred Units, subject to applicable taxes. SMLP focuses on midstream energy infrastructure in the U.S., operating in multiple unconventional resource basins.
Summit Midstream Partners, LP (SMLP) announced it will report its first quarter 2021 operating and financial results on May 7, 2021, before market open. A conference call will follow at 10:00 a.m. Eastern for discussion and analysis. Investors can participate by dialing provided numbers or accessing the event online. SMLP is focused on developing midstream energy infrastructure in key U.S. basins, offering gathering services for natural gas, crude oil, and produced water.
Summit Midstream Partners, LP (NYSE: SMLP) reported preliminary results for its Exchange Offer to convert Series A Preferred Units into common units. The Exchange Offer, which ended on April 13, 2021, saw 18,662 Series A Preferred Units tendered, subject to verification by the Depositary. The Partnership plans to deliver the common units on April 15, 2021. The exchange aims to streamline capital structure and enhance investor interests.
Summit Midstream Partners, LP (SMLP) extended the expiration date of its Exchange Offer for its 9.50% Series A Preferred Units to April 13, 2021. The Partnership aims to exchange up to 2,400,000 newly issued common units for tendered preferred units. As of April 6, 2021, only 23,912 preferred units were properly tendered, falling short of the 15,000 units required to proceed with the exchange. The Exchange Offer documents are available on the SEC and Partnership's websites.
Summit Midstream Partners (SMLP) announced an amendment to its Exchange Offer for its 9.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units. Now, each tendered Series A Preferred Unit will exchange for 30 Common Units, up from 27, marking an 11% increase. The maximum Common Units available for exchange has risen from 2,160,000 to 2,400,000. The Exchange Offer will expire on April 6, 2021, unless extended, and requires a minimum of 15,000 Series A Preferred Units to be tendered.
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