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) has announced the availability of its 2020 tax packages, including the Schedule K-1, accessible online and via mail to unitholders. This package is important for tax reporting purposes and will be mailed out later this week. SMLP is a midstream energy firm focused on developing and operating infrastructure assets in major U.S. shale formations, providing essential gathering services for natural gas, crude oil, and produced water. For further assistance, unitholders can contact Partner DataLink.
Summit Midstream Partners, LP (NYSE: SMLP) announced an Exchange Offer for its 9.50% Series A Preferred Units, allowing holders to exchange them for up to 2,160,000 newly issued common units, with the offer expiring on April 6, 2021. For each preferred unit tendered, holders will receive 27 common units. The Exchange Offer requires a minimum of 15,000 preferred units to be tendered and may result in proration if the total exceeds the maximum. Tendering holders will forfeit any accumulated distributions on their preferred units.
Summit Midstream Partners, LP (SMLP) filed its 2020 Annual Report on Form 10-K with the SEC on March 9, 2021. This report encompasses audited financial statements for the fiscal year ending December 31, 2020. Unitholders can access the report online or request a hard copy via email or mail. SMLP focuses on developing midstream energy infrastructure assets primarily located in shale formations across the continental U.S., providing gathering services for natural gas, crude oil, and produced water.
Summit Midstream Partners, LP (SMLP) has closed $175 million in senior secured credit facilities to finance the development of the Double E Pipeline Project, where it owns a 70% stake. The total budget for Double E is projected at $425 million, with $150 million allocated for 2021. With $35 million as a contingency, the company has posted a $16 million letter of credit to support future contributions. If further equity funding is necessary, it will not occur until 2022, post the project's in-service date in Q4 2021.
Summit Midstream Partners reported strong fourth-quarter 2020 results with a net income of $103.0 million driven by a $124.1 million gain from early debt extinguishment. Adjusted EBITDA reached $61.8 million, up slightly from the prior quarter. Operated natural gas volumes increased by 3.2% compared to Q3 2020, supported by new well connections and returning shut-in production. For 2021, SMLP expects adjusted EBITDA between $210 million and $230 million, anticipating lower activity but sufficient cash generation to reduce debt by $130 million to $150 million.
Summit Midstream Partners, LP (SMLP) announced the rescheduling of its fourth quarter 2020 earnings release and conference call to March 4, 2021, before trading begins on the NYSE. The earnings report will be followed by a conference call at 10:00 a.m. Eastern on the same day, allowing investors and interested parties to discuss SMLP's quarterly financial results. The company focuses on midstream energy infrastructure in key shale formations across the U.S., providing gathering services under long-term agreements.
Summit Midstream Partners (SMLP) reported its preliminary Q4 2020 financial results, projecting net income between $119 million and $121 million, driven by a $124 million gain from debt extinguishment. Adjusted EBITDA is estimated at $61 million to $63 million, reflecting improved operations following new well connections and cost reductions. For 2021, SMLP forecasts adjusted EBITDA of $210 million to $230 million and capital expenditures between $20 million and $35 million. The company plans to focus on debt reduction and continues to progress on the Double E Pipeline project, expected to be operational by Q4 2021.
Summit Midstream Partners (SMLP) announced $175 million in financing commitments from three banks for its Double E Pipeline Project. This includes a $160 million delayed draw term loan and a $15 million working capital facility, both non-recourse to SMLP. The financing is expected to cover the remaining capital obligations for Double E, with construction set to move forward after FERC approval. SMLP will report its Q4 2020 financial results on February 26, 2021, followed by a conference call to discuss the results.
Summit Midstream Partners, LP (NYSE: SMLP) has announced that its joint venture, Double E Pipeline, LLC, received the Notice to Proceed (NTP) from FERC for construction, along with necessary approvals from the Bureau of Land Management. SMLP holds a 70% equity interest in Double E and will manage its construction. The company aims to start operations by Q4 2021, having made progress on financing related to its stake. The pipeline will facilitate natural gas transport from the Delaware Basin to the Waha Hub in Texas.
Summit Midstream Partners, LP (SMLP) announced the final results of its cash Tender Offer for up to $25,000,000 of its 9.50% Series A Preferred Units, which concluded on December 23, 2020. A total of 92,681 units were tendered and 75,075 units were accepted at $333.00 each, totaling approximately $25 million. The Tender Offer was oversubscribed with a proration factor of about 80.92%. Investors whose units were accepted will receive payment soon, while other units will be returned.
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