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Summit Midstream (SMC)
NYSE:SMC
US Market
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Summit Midstream (SMC) AI Stock Analysis

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SMC

Summit Midstream

(NYSE:SMC)

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Neutral 65 (OpenAI - 5.2)
Rating:65Neutral
Price Target:
$34.00
▼(-0.06% Downside)
Action:Reiterated
Date:08/11/26
SMC’s score is driven primarily by improving operating performance and constructive price momentum. These positives are tempered by uneven bottom-line profitability and recent free-cash-flow softness, while valuation is penalized by a negative P/E (and no dividend yield provided). The latest earnings call adds support due to tightened EBITDA guidance and visible growth projects, but leverage above target remains a key near-term constraint.
Positive Factors
Revenue Growth and Operating Margins
The combination of strong TTM revenue growth and healthy operating margins indicates improving scale and throughput economics. Sustained infrastructure utilization can support earnings growth, though durability depends on producer activity and volumes.
Negative Factors
Inconsistent Net Profitability
Healthy gross and EBITDA margins have not consistently translated into bottom-line earnings. Near-breakeven net income limits retained capital generation, weakens return potential, and leaves results more exposed to depreciation, interest, and operating variability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Operating Margins
The combination of strong TTM revenue growth and healthy operating margins indicates improving scale and throughput economics. Sustained infrastructure utilization can support earnings growth, though durability depends on producer activity and volumes.
Read all positive factors

Summit Midstream (SMC) vs. SPDR S&P 500 ETF (SPY)

Summit Midstream Business Overview & Revenue Model

Company Description
Summit Midstream Corporation specializes in managing and developing critical energy infrastructure, primarily across the continental United States' significant shale formations. The company oversees extensive collection networks for natural gas, c...
How the Company Makes Money
SMC makes money by charging fees for midstream services provided through its owned and operated infrastructure. Its primary revenue streams typically include: (1) Gathering and transportation fees: SMC earns tariff or contract-based fees for movin...

Summit Midstream Earnings Call Summary

Earnings Call Date:Aug 10, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum and commercial progress (notably in the Rockies, Mid‑Con and Double E commercial pipeline), with adjusted EBITDA up 12% QoQ, tightened full‑year EBITDA guidance, and clear pipeline of high‑return projects (including ~30 incremental Williston wells and Double E expansion). Near‑term headwinds include Piceance throughput declines and the expiration of MVC shortfall payments (~$4M/quarter), leverage above target at ~4.1x, modest free cash flow ($9.4M) and sensitivity to commodity prices. On balance, the positive operational and commercial developments and tightened guidance focused on growth outweigh the manageable financial and market risks.
Positive Updates
Quarterly Adjusted EBITDA Growth
Adjusted EBITDA of $60.7 million in Q2 2026, a 12% increase quarter-over-quarter driven by growth in the Rockies and Mid‑Con segments.
Negative Updates
Piceance Segment Weakness
Piceance adjusted EBITDA fell to $8.7 million, a decrease of $0.9 million QoQ, primarily from a 5.7% decline in throughput driven by temporary shut‑ins, natural declines, and no new well connections during the quarter (previously shut‑in volumes began flowing by end of July).
Read all updates
Q2-2026 Updates
Negative
Quarterly Adjusted EBITDA Growth
Adjusted EBITDA of $60.7 million in Q2 2026, a 12% increase quarter-over-quarter driven by growth in the Rockies and Mid‑Con segments.
Read all positive updates
Company Guidance
Summit tightened 2026 adjusted EBITDA guidance to $235–$255 million (midpoint $245M), up from prior range, which—after H1 adjusted EBITDA of $115M (Q2 $60.7M)—implies H2 adjusted EBITDA of roughly $120–$140M; full‑year CapEx was raised to $100–$120M (inclusive of Double E JV contributions) with Q2 capex at $25M (maintenance $4.1M). Management said the capex increase is driven primarily by ~30 incremental Williston wells (company estimates ~ $10M of incremental EBITDA in 2027 from those wells) and incremental Double E compression capital (Double E averaged 859 MMcf/d in Q2 and now has just over 1.9 Bcf/d contracted), where existing contracts cover roughly $70M of EBITDA and compression could lift that to 90+M in the FID case (sub‑6x build multiple at FID, falling toward ~3x as capacity is fully contracted). Quarterly distributable cash flow was $36.8M and free cash flow $9.4M; balance sheet at quarter end included $21M unrestricted cash, $79M revolver drawn, ~ $418M borrowing availability, total leverage ~4.1x (target 3.5x), a $350M non‑recourse Permian term loan balance, pursuit of a $50M accordion, and an authorized $35M share repurchase program (≈35k shares bought for $1M, ~$34M remaining). Management expects the incremental activity and capital to be high‑return, to show up primarily in 2027, and supports a longer‑term objective of >$100M organic EBITDA growth by 2030 and eventual resumption of a common dividend as leverage improves.

Summit Midstream Financial Statement Overview

Summary
Fundamentals are mixed: revenue and operating profitability are improving with healthy gross and EBITDA margins, and the latest-period balance sheet appears stronger; however, net profitability has been inconsistent (near-breakeven in TTM) and free cash flow recently weakened (slightly negative in TTM per the cash-flow summary), which limits the overall financial score.
Income Statement
63
Positive
Balance Sheet
72
Positive
Cash Flow
58
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue583.33M562.09M429.62M458.90M369.59M401.56M
Gross Profit245.95M149.65M113.01M122.94M89.56M245.41M
EBITDA209.71M207.43M250.53M225.86M81.17M187.22M
Net Income-3.06M-1.91M-113.17M-38.95M-123.46M-19.95M
Balance Sheet
Total Assets2.41B2.39B2.36B2.49B2.56B2.52B
Cash, Cash Equivalents and Short-Term Investments20.97M9.27M22.82M14.04M11.81M7.35M
Total Debt1.24B1.05B993.58M1.48B1.50B1.36B
Total Liabilities1.49B1.30B1.39B1.65B1.68B1.51B
Stockholders Equity598.38M687.48M467.79M718.56M764.82M904.36M
Cash Flow
Free Cash Flow-3.63M44.55M8.16M58.00M68.27M140.07M
Operating Cash Flow131.15M133.59M61.77M126.91M98.74M165.10M
Investing Cash Flow-93.86M-163.15M487.06M-74.76M-226.56M-165.73M
Financing Cash Flow-31.04M24.04M-540.28M-49.04M121.77M4.66M

Summit Midstream Technical Analysis

Technical Analysis Sentiment
Positive
Last Price34.02
Price Trends
50DMA
31.16
Positive
100DMA
30.58
Positive
200DMA
29.24
Positive
Market Momentum
MACD
0.94
Positive
RSI
59.69
Neutral
STOCH
38.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMC, the sentiment is Positive. The current price of 34.02 is above the 20-day moving average (MA) of 33.15, above the 50-day MA of 31.16, and above the 200-day MA of 29.24, indicating a bullish trend. The MACD of 0.94 indicates Positive momentum. The RSI at 59.69 is Neutral, neither overbought nor oversold. The STOCH value of 38.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMC.

Summit Midstream Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$3.16B19.14-935.80%7.85%30.33%-2.37%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
65
Neutral
$690.88M-30.81-0.48%20.94%95.10%
57
Neutral
$2.01B82.29141.17%4.59%-17.25%
55
Neutral
$2.15B-5.75-51.37%-21.60%-588.91%
45
Neutral
$86.86M-7.8612.49%0.82%4.01%1.75%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SMC
Summit Midstream
33.89
12.97
62.00%
GEL
Genesis Energy
16.40
<0.01
0.04%
MMLP
Martin Midstream
2.22
-1.08
-32.81%
NGL
NGL Energy Partners
17.52
12.16
226.87%
DKL
Delek Logistics
54.94
15.16
38.11%
PBT
Permian Basin
33.68
17.40
106.83%

Summit Midstream Corporate Events

Business Operations and Strategy
Summit Midstream Expands Double E Pipeline Commitments and Capacity
Positive
Jun 10, 2026
On June 8, 2026, Summit Midstream Corporation announced it had executed two new long-term firm transportation agreements totaling 150 million cubic feet per day on its Double E Pipeline, lifting open-season commitments to 250 MMcf/d and total cont...
Business Operations and StrategyStock Buyback
Summit Midstream Launches First $35 Million Share Repurchase
Positive
Jun 1, 2026
On June 1, 2026, Summit Midstream Corporation announced that its board had authorized the company&#8217;s inaugural stock repurchase program, allowing the buyback of up to $35 million of its outstanding common shares. Management said the move refl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 11, 2026