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Summit Midstream (SMC)
NYSE:SMC
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Summit Midstream
(NYSE:SMC)
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Rating:47Neutral
Price Target:
$21.50
▼(-4.66% Downside)
Summit Midstream's overall stock score reflects significant financial challenges, particularly in profitability and leverage, which are the most impactful factors. Technical indicators suggest a neutral to bearish trend, and valuation metrics are weak due to negative earnings. While there are some positive developments from the earnings call, they are overshadowed by current financial difficulties.
Summit Midstream (SMC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$423.18M
Dividend YieldN/A
Average Volume (3M)83.74K
Price to Earnings (P/E)5.9
Beta (1Y)0.70
Revenue Growth2.91%
EPS Growth-432.03%
CountryUS
Employees272
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)-0.66
Shares Outstanding12,241,864
10 Day Avg. Volume82,699
30 Day Avg. Volume83,743
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap4.74
Enterprise Value/Revenue4.16
Enterprise Value/Gross Profit16.29
Enterprise Value/Ebitda15.95
Forecast
1Y Price Target
$21.50Price Target Upside-4.66% Downside
Rating ConsensusHold
Number of Analyst Covering1
Summit Midstream Business Overview & Revenue Model
Company DescriptionSummit Midstream Corporation focuses on owning, developing, and operating midstream energy infrastructure assets primarily shale formations in the continental United States. It operates natural gas, crude oil, and produced water gathering systems in four unconventional resource basins, including the Williston Basin in North Dakota, which includes the Bakken and Three Forks shale formations; the Denver-Julesburg Basin that consists of the Niobrara and Codell shale formations in Colorado and Wyoming; the Fort Worth Basin in Texas, which comprises the Barnett Shale formation; and the Piceance Basin in Colorado, which includes the Mesaverde formation, as well as the emerging Mancos and Niobrara Shale formations. It serves natural gas and crude oil producers. Summit Midstream Corporation was founded in 2012 and is based in Houston, Texas.
How the Company Makes MoneySummit Midstream generates revenue primarily through long-term contracts with natural gas producers, which provide stable cash flows. The company's revenue model is based on fee-for-service agreements, where it charges customers for the gathering, processing, and transportation of natural gas. Key revenue streams include gathering fees from the transportation of natural gas through its pipeline systems, processing fees from the treatment of raw gas at its processing facilities, and water services related to hydraulic fracturing operations. Significant partnerships with major exploration and production companies enhance SMC's market position and contribute to its earnings, as they ensure a steady volume of throughput and processing activities.
Summit Midstream Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While there were notable achievements such as the extension of gathering agreements and inclusion in major indices, there were significant challenges like the below-expectation adjusted EBITDA and deferred development by customers. The financial outlook remains cautiously optimistic despite current setbacks.Q2-2025 Updates
Positive Updates
10-Year Extension of Gathering Agreements
Summit executed a new 10-year extension of certain gathering agreements with a key customer in the Williston, increasing the weighted average contract life from 4 to 8 years.
Addition to Russell Indices
Summit was added to the Russell 3000, Russell 2000, and Russell Microcap indices, enhancing visibility among institutional investors and broadening the shareholder base.
New 10-Year Precedent Agreement in Permian
A new 10-year precedent agreement for 100 million a day of firm capacity on Double E was signed, contingent on the customer's final investment decision to build a new plant.
Volume Growth in Rockies Segment
The Rockies segment saw a 5.4% increase in liquids volume throughput and a 14% increase in natural gas volume throughput following the Moonrise Midstream business acquisition.
Incremental Development in Arkoma
An anchor customer is preparing a 20-well development program in the Arkoma, expected to begin in the fourth quarter and continue through mid-2026.
Negative Updates
Adjusted EBITDA Below Expectations
Second-quarter adjusted EBITDA was $61 million, below expectations due to underperformance of some wells in the DJ, delays in well completions, and lower realized commodity prices.
Deferral of Development by Customers
Some customers deferred development due to a drop in crude prices earlier this year, impacting the year's financial outlook.
Higher Operating and G&A Expenses in Rockies
Operating and general and administrative expenses increased by approximately $4.5 million in the Rockies segment, partly due to the Moonrise Midstream acquisition and onetime costs.
Decrease in Piceance Segment EBITDA
The Piceance segment recorded a decrease in adjusted EBITDA of $1.3 million relative to the first quarter, primarily due to higher operating expenses and a 1.1% decrease in volume throughput.
Company Guidance
In the second quarter of 2025, Summit Midstream Corporation reported an adjusted EBITDA of $61 million, which was slightly below expectations due to underperformance in certain wells and lower commodity prices. Capital expenditures totaled $26.4 million, including $5.5 million for maintenance. Despite challenges, the company executed a 10-year extension of gathering agreements in the Williston, improving contract life from 4 to 8 years. Summit's Rockies segment generated $25.2 million in adjusted EBITDA, with volume increases offset by lower commodity prices and increased expenses. The Permian Basin segment saw a slight EBITDA increase to $8.3 million due to higher throughput. The Piceance segment's EBITDA decreased to $10.5 million, while the Mid-Con segment increased to $24.9 million, driven by increased throughput and new well connections. The company remains optimistic about future volume recovery and development opportunities in 2026, particularly with a significant program in the Arkoma and new agreements in the Permian.Summit Midstream Financial Statement Overview
Summary
Summit Midstream faces financial challenges with declining revenue and persistent net losses. The high leverage increases financial risk, though cash flow from operations remains positive. Continued focus on cost management and revenue growth is essential for financial stability.Income Statement
The company shows declining revenue growth with a negative net profit margin, indicating challenges in converting revenue to profit. Gross profit margin is stable, but EBIT and EBITDA margins have shown a downward trend, reflecting operational inefficiencies or increased costs.45
Neutral
Balance Sheet
The debt-to-equity ratio is high, suggesting significant leverage which poses financial risk. The return on equity is negative due to consistent net losses, indicating inefficient utilization of equity. The equity ratio is moderate, providing some buffer against liabilities.40
Negative
Cash Flow
Operating cash flow is positive but declining, while free cash flow has turned negative recently, indicating potential liquidity concerns. The operating cash flow to net income ratio is strong due to non-cash charges affecting net income, but the free cash flow to net income ratio highlights issues with cash generation.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 482.35M | 429.62M | 458.90M | 369.59M | 400.62M | 383.47M |
| Gross Profit | 123.08M | 113.01M | 122.94M | 89.56M | 125.39M | 142.66M |
| EBITDA | 125.66M | 250.53M | 193.32M | 164.61M | 159.10M | 378.87M |
| Net Income | -217.95M | -113.17M | -38.95M | -123.46M | -19.95M | 192.35M |
Balance Sheet | ||||||
| Total Assets | 2.42B | 2.36B | 2.49B | 2.56B | 2.52B | 2.50B |
| Cash, Cash Equivalents and Short-Term Investments | 25.50M | 22.82M | 14.04M | 11.81M | 7.35M | 15.54M |
| Total Debt | 1.08B | 993.58M | 1.47B | 1.49B | 1.36B | 1.35B |
| Total Liabilities | 1.33B | 1.39B | 1.65B | 1.68B | 1.51B | 1.58B |
| Stockholders Equity | 688.91M | 467.79M | 718.56M | 764.82M | 904.36M | 922.89M |
Cash Flow | ||||||
| Free Cash Flow | 10.35M | 8.16M | 58.00M | 68.27M | 140.07M | 155.46M |
| Operating Cash Flow | 84.04M | 61.77M | 126.91M | 98.74M | 165.10M | 198.59M |
| Investing Cash Flow | -305.04M | 487.06M | -74.76M | -226.56M | -165.73M | -140.57M |
| Financing Cash Flow | 86.28M | -540.28M | -49.04M | 121.77M | 4.66M | -79.40M |
Summit Midstream Technical Analysis
Neutral
22.55
Price Trends
22.96
Negative
24.54
Negative
30.68
Negative
Market Momentum
-0.03
Positive
49.82
Neutral
55.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMC, the sentiment is Neutral. The current price of 22.55 is below the 20-day moving average (MA) of 22.76, below the 50-day MA of 22.96, and below the 200-day MA of 30.68, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 49.82 is Neutral, neither overbought nor oversold. The STOCH value of 55.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SMC.
Summit Midstream Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $52.26B | 12.17 | 31.19% | 7.46% | 4.67% | 2.07% | |
73 Outperform | $2.43B | 15.41 | 401.61% | 9.74% | -12.08% | 1.44% | |
61 Neutral | $795.21M | -15.09 | 69.22% | ― | -33.19% | 81.02% | |
60 Neutral | $1.70B | 19.19 | 15.97% | 5.93% | 3.74% | -4.49% | |
47 Neutral | $423.18M | 5.86 | -25.85% | ― | 2.91% | -432.03% | |
45 Neutral | $124.59M | -8.11 | 21.05% | 0.63% | -1.06% | -340.61% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
SMC
Summit Midstream
22.55
-12.48
-35.63%
GEL
Genesis Energy
16.61
3.89
30.58%
MMLP
Martin Midstream
3.19
-0.44
-12.12%
NGL
NGL Energy Partners
6.22
1.72
38.22%
DKL
Delek Logistics
45.50
6.24
15.89%
PBT
Permian Basin
18.51
6.84
58.61%
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.