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 (NYSE: SMLP) announced preliminary results of its cash tender offer for up to $25 million of its 9.50% Series A Preferred Units, which expired on December 23, 2020. A total of 92,681 units were validly tendered. Due to oversubscription, approximately 75,075 units will be accepted, with odd-lot holders exempt from proration. The preliminary proration factor is approximately 80.91%. Payment for accepted units is expected on December 29, 2020. This reflects the company's focus on managing its capital structure effectively.
Summit Midstream Partners, LP (SMLP) announced a successful amendment of its revolving credit facility to secure additional liquidity and flexibility for managing liabilities, particularly addressing debt maturing in 2022. Key changes include:
- Reduction of Revolver commitments from $1.25 billion to $1.1 billion
- Issuance of up to $400 million of junior lien indebtedness
- Increased total leverage covenant from 5.50x to 5.75x
- Restriction on resuming distributions on preferred and common units
This amendment is a crucial step in the Partnership's liability management strategy.
Summit Midstream Partners, LP (SMLP) announced an amendment to its tender offer to purchase up to $25 million of its 9.50% Series A Preferred Units. The new purchase price of $333 per unit represents a 33.2% increase from the previous offer of $250 and a 66.5% increase from the initial $200. The expiration date for this tender offer is extended to December 23, 2020. As of December 9, 2020, approximately 24,257 units have been tendered. The offer is detailed in filings with the SEC and on the partnership's website.
Summit Midstream Partners, LP (NYSE: SMLP) announced it has regained compliance with the NYSE's continued listing standards following a reverse unit split. The company’s common unit price has averaged above $1.00 for the 30 trading days ending November 30, 2020. Consequently, the 'below criteria' suffix will be removed from its ticker symbol, allowing SMLP to trade without restrictions. This compliance is expected to enhance investor confidence and stabilizes the trading environment for SMLP.
Summit Midstream Partners, LP (SMLP) has amended its cash Tender Offer for its 9.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units, increasing the Purchase Price to $250.00 from $200.00, representing a 25% increase. The offer's total value is up to $25 million for a maximum of 100,000 units. Additionally, the Minimum Tender Condition has been removed, allowing the offer to proceed without the requirement of a minimum tender. The Tender Offer is set to expire on December 9, 2020.
Summit Midstream Partners, LP (SMLP) announced on November 16, 2020, that the closing conditions for a Term Loan restructuring have been satisfied. The restructuring involves $155.2 million in claims, with lenders set to receive $26.5 million cash and approximately 2.3 million SMLP common units. The restructuring will conclude on November 17, 2020, leading to the discharge of the Term Loan and the waiver of claims against SMP Holdings. Concurrently, SMLP will settle a $180.75 million deferred purchase obligation with a $27 million cash payment.
Summit Midstream Partners (SMLP) announced a cash Tender Offer to purchase up to $25 million of its 9.50% Series A Preferred Units. Holders will receive $200 per unit accepted, with a minimum of 75,000 units required for the offer to proceed. The Tender Offer expires at 11:59 p.m. EST on December 9, 2020. If fully subscribed, 125,000 units will be purchased. Units tendered will forfeit all accumulated distributions. The offer is subject to proration if valid tenders exceed the maximum price. Further details will be filed with the SEC.
Summit Midstream Partners (SMLP) reported third-quarter 2020 financial results with a net income of $25.6 million and adjusted EBITDA of $59.8 million. A significant factor was a $24.7 million gain from debt extinguishment. Natural gas throughput averaged 1,392 MMcf/d, remaining stable, while liquids volume decreased by 9.2%. The Double E project achieved FERC approval in October, with capital costs expected to be under $430 million. SMLP has repurchased $306.5 million of senior notes, reducing fixed obligations by approximately $550.1 million.
Summit Midstream Partners, LP (NYSE: SMLP) has announced a 1-for-15 reverse unit split effective after market close on November 9, 2020. Following this action, the number of outstanding common units will decrease from approximately 56.6 million to about 3.8 million. The units will trade on a split-adjusted basis starting November 10, 2020. This decision aims to enhance the marketability of SMLP's common units while complying with NYSE listing requirements. The company operates midstream energy assets in key shale formations across the U.S.
Summit Midstream Partners (SMLP) will announce its operating and financial results for Q3 2020 on November 6, 2020, before market hours. A conference call will take place at 10:00 a.m. Eastern on the same day. Key operational areas include several major shale formations across the United States, where SMLP provides fee-based gathering and processing services. The partnership emphasizes its growth in unconventional energy resources, alongside its investments in natural gas transmission infrastructure through its equity stakes in Double E Pipeline and Ohio Gathering.
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