HOUSTON, Aug. 10, 2026 /PRNewswire/ -- Summit Midstream Corporation (NYSE: SMC) ("Summit", "SMC" or the "Company") announced today its financial and operating results for the three months ended June 30, 2026.
Highlights
-- Second quarter 2026 net income of $4.6 million, Adjusted EBITDA of $60.7
million, an increase of 12% relative to the first quarter of 2026, cash
flow available for distributions ("Distributable Cash Flow" or "DCF") of
$36.8 million and free cash flow ("FCF") of $9.4 million
-- Eight rigs currently operating behind the Rockies systems, including six
in the Williston Basin and two in the DJ Basin, with approximately 75
DUCs across the footprint
-- Mid-Con Segment natural gas volume throughput increased 9.9% to 523
MMcf/d relative to the first quarter of 2026, driving a 10% increase in
Segment Adjusted EBITDA
-- Established $35 million stock repurchase program
-- Continued commercial progress in the Permian and Williston Basins,
including new firm transportation agreements on Double E and a new crude
gathering agreement in Divide County, North Dakota
-- Tightened 2026 Adjusted EBITDA guidance range to $235 million to $255
million and increased total capital expenditures to $100 million to $120
million to reflect additional high-returning growth projects in the
Rockies and Permian Segments
Management Commentary
Heath Deneke, President, Chief Executive Officer and Chairman, commented, "Customer activity ramped up meaningfully across our footprint during the second quarter with 36 new well connections, driving a 12% increase in Adjusted EBITDA relative to the first quarter. Our Rockies Segment accounted for the majority of the increase, while Mid-Con delivered a nearly 10% volume increase on strong well performance in both the Barnett and Arkoma, giving us added confidence in the segment's trajectory for the remainder of the year. We also executed new firm transportation agreements on Double E and a new crude gathering agreement in Divide County, North Dakota, further strengthening our long-term growth outlook. We continue to have a tremendous amount of customer interest in the ongoing Double E -- Mainline Compression Expansion open season. We have extended the open season through the end of August as we work on finalizing additional firm transportation agreements to support the project and we expect to be in a position to make a final investment decision prior to its conclusion.
"Another encouraging development this quarter has been the acceleration of activity in the Williston Basin. Six rigs are running behind our system today, the most active drilling program we have seen in the basin in several years. Since the end of the second quarter, we have connected 17 new wells, nine of which we serve with both crude oil and produced water gathering. We've also identified approximately 30 incremental well connections in the Williston Basin that were not part of our original plan, a result of our recent commercial success in the basin and existing customers accelerating their development activity. These wells are expected to connect primarily in the fourth quarter, so we expect minimal impact on 2026 results, but they position us well for a strong start to 2027.
"With a solid first half behind us and customer activity accelerating across the footprint, we have better visibility into our second-half volume profile. We are tightening our full-year 2026 Adjusted EBITDA guidance to $235 million to $255 million and increasing total capital expenditures, including Double E, to $100 million to $120 million to reflect additional high-returning growth projects in the Rockies and Permian Segments."
Second Quarter 2026 Business Highlights
SMC's average daily natural gas throughput on its wholly owned, operated systems increased 3.3% to 899 MMcf/d, while liquids volumes increased 6.3% to 68 Mbbl/d, relative to the first quarter of 2026. Double E Pipeline averaged 859 MMcf/d and contributed $9.4 million in Adjusted EBITDA, net to SMC, for the second quarter of 2026.
Natural gas price-driven segments:
-- Natural gas price-driven segments generated $30.0 million in combined
Segment Adjusted EBITDA, a $1.1 million increase relative to the first
quarter of 2026, with combined capital expenditures of $7.3 million
-- Mid-Con Segment Adjusted EBITDA totaled $21.4 million, an increase of
$2.0 million relative to the first quarter of 2026, primarily due to a
9.9% increase in natural gas volume throughput to 523 MMcf/d, driven by
17 new Barnett well connections and three new Arkoma well connections
during the quarter.
-- Piceance Segment Adjusted EBITDA totaled $8.7 million, a decrease of $0.9
million relative to the first quarter of 2026, primarily due to a 5.7%
decline in volume throughput driven by continued temporary shut-ins,
natural production declines, and no new well connections during the
quarter. As of the end of July, all previous shut-in production has
resumed flowing.
Oil price-driven segments:
-- Oil price-driven segments generated $39.7 million in combined Segment
Adjusted EBITDA, a $4.6 million increase relative to the first quarter of
2026, with combined capital expenditures of $17.0 million
-- Rockies Segment Adjusted EBITDA totaled $30.4 million, an increase of
$4.0 million relative to the first quarter of 2026, driven by a 6.3%
increase in liquids volume throughput and higher realized crude oil and
NGL prices, partially offset by a 3.0% decline in natural gas volume
throughput. 16 wells were connected in the DJ Basin during the quarter,
and subsequent to quarter end, 17 wells were connected in the Williston
Basin, including nine wells for which we provide both crude oil and
produced water gathering services. Eight rigs are currently running in
the Rockies Segment, including two in the DJ Basin and six in the
Williston Basin, with approximately 75 DUCs behind the systems.
-- Permian Segment Adjusted EBITDA totaled $9.4 million, an increase of $0.6
million relative to the first quarter of 2026, driven by a 6.7% increase
in Double E volume throughput to 859 MMcf/d.
The following table presents average daily throughput by reportable segment for the periods indicated:
Three Months Ended June 30, Six Months Ended June 30,
---------------------------- ---------------------------
2026 2025 2026 2025
------------- ------------- ------------- ------------
Average daily
throughput
(MMcf/d):
Rockies 162 147 165 138
Piceance 214 263 221 265
Mid-Con 523 502 500 496
------------- ------------- ------------- ------------
Aggregate
average
daily
throughput 899 912 886 899
============= ============= ============= ============
Average daily
throughput
(Mbbl/d):
Rockies 68 78 66 76
------------- ------------- ------------- ------------
Aggregate
average
daily
throughput 68 78 66 76
============= ============= ============= ============
Double E
average
daily
throughput
(MMcf/d)
(1) 859 682 832 673
============= ============= ============= ============
_________
(1) Gross basis, represents 100% of volume throughput for Double E.
The following table presents adjusted EBITDA by reportable segment for the periods indicated:
Three Months Ended June 30, Six Months Ended June 30,
------------------------------ ----------------------------
2026 2025 2026 2025
-------------- -------------- ------------- -------------
(In thousands)
Reportable
segment adjusted
EBITDA (1) :
Rockies 30,359 25,235 56,734 50,104
Permian (2) 9,364 8,300 18,094 16,570
Piceance 8,662 10,474 18,232 22,260
Mid-Con 21,361 24,900 40,688 47,357
-------------- -------------- ------------- -------------
Total $ 69,746 $ 68,909 $ 133,748 $ 136,291
Less: Corporate
and Other (3) 9,047 7,815 18,857 17,691
-------------- -------------- ------------- -------------
Adjusted EBITDA
(4) $ 60,699 $ 61,094 $ 114,891 $ 118,600
============== ============== ============= =============
__________
(1) Segment adjusted EBITDA is a non-GAAP financial measure. We define
segment adjusted EBITDA as total revenues less total costs and expenses,
plus (i) other income (excluding interest income), (ii) our proportional
adjusted EBITDA for equity method investees, (iii) depreciation and
amortization, (iv) adjustments related to minimum volume commitments
("MVC") shortfall payments, (v) adjustments related to capital
reimbursement activity, (vi) share-based and noncash compensation, (vii)
impairments and (viii) other noncash expenses or losses, less other
noncash income or gains.
(2) Includes our proportional share of adjusted EBITDA for Double E. We
define proportional adjusted EBITDA for our equity method investees as
the product of total revenues less total expenses, excluding impairments
and other noncash income or expense items; multiplied by our ownership
interest during the respective period.
(3) Corporate and Other represents those results that are not specifically
attributable to a reportable segment or that have not been allocated to
our reportable segments, including certain general and administrative
expense items and transaction costs.
(4) Adjusted EBITDA is a non-GAAP financial measure.
Capital Expenditures
Capital expenditures totaled $25.0 million in the second quarter of 2026, inclusive of maintenance capital expenditures of $4.1 million. Capital expenditures in the second quarter of 2026 were primarily related to pad connections in the Rockies and Mid-Con segments. SMC is increasing its full year 2026 capital expenditure guidance to $100 million to $120 million, from $85 million to $105 million previously, reflecting 30 additional Williston wells added to the program or accelerated from 2027 and incremental capital at Double E tied to new firm transportation agreements executed this year.
Six Months Ended June 30,
----------------------------------
2026 2025
---------------- ----------------
(In thousands)
Cash paid for capital expenditures (1) :
Rockies $ 27,989 $ 22,321
Piceance 763 1,200
Mid-Con 14,127 21,726
---------------- ----------------
Total reportable segment capital
expenditures $ 42,879 $ 45,247
Corporate and Other 1,391 1,749
---------------- ----------------
Total cash paid for capital
expenditures $ 44,270 $ 46,996
================ ================
__________
(1) Excludes cash paid for capital expenditures by Double E due to equity
method accounting.
Capital & Liquidity
As of June 30, 2026, SMC had $21.0 million in unrestricted cash-on-hand and $79 million drawn under its $500 million ABL Revolver with $418 million of borrowing availability, after accounting for $2.7 million of issued, but undrawn letters of credit. As of June 30, 2026, SMC's gross availability based on the borrowing base calculation in the credit agreement was $798 million, which is $298 million greater than the $500 million of lender commitments to the ABL Revolver. As of June 30, 2026, SMC was in compliance with all financial covenants, including interest coverage of 2.7x relative to a minimum interest coverage covenant of 2.0x and first lien leverage ratio of 0.3x relative to a maximum first lien leverage ratio of 2.5x. As of June 30, 2026, SMC reported a total leverage ratio of approximately 4.1x.
As of June 30, 2026, the Summit Permian Transmission Term Loan Facility had a balance of $350 million. Summit Midstream Permian has $10.8 million of cash-on-hand as of June 30, 2026. The Permian Transmission Term Loan remains non-recourse to SMC.
MVC Shortfall Payments
SMC billed its customers $4.2 million in the second quarter of 2026 related to MVC shortfalls. For those customers that do not have MVC shortfall credit banking mechanisms in their gathering agreements, the MVC shortfall payments are accounted for as gathering revenue in the period in which they are earned. In the second quarter of 2026, SMC recognized $4.2 million of gathering revenue associated with MVC shortfall payments. SMC had $0.0 million of adjustments to MVC shortfall payments in the second quarter of 2026. SMC's MVC shortfall payment mechanisms contributed $4.2 million of total Adjusted EBITDA in the second quarter of 2026. The minimum volume commitments underpinning SMC's Piceance segment gathering agreements, which represent substantially all of SMC's MVC shortfall payments, expire at the end of the third quarter of 2026.
Quarterly Dividend
The Board of Directors of Summit Midstream Corporation continued to suspend cash dividends payable on the common stock for the period ended June 30, 2026. The quarterly cash dividend on the Series A Preferred Stock, for the period ending September 14, 2026, will be paid to preferred shareholders of record as of the close of business on September 1, 2026.
Share Repurchase Program
During the second quarter of 2026, SMC repurchased 34,624 shares of its common stock for approximately $1.0 million. As of June 30, 2026, SMC had approximately $34.0 million of remaining capacity under its $35 million share repurchase program.
Second Quarter 2026 Earnings Call Information
SMC will host a conference call at 10:00 a.m. Eastern on August 11, 2026, to discuss its quarterly operating and financial results. The call can be accessed via teleconference at the following link: Q2 2026 Summit Midstream Corporation Earnings Conference Call . Once registration is completed, participants will receive a dial-in number along with a personalized PIN to access the call. While not required, it is recommended that participants join 10 minutes prior to the event start. The conference call, live webcast and archive of the call can be accessed through the Investors section of SMC's website at www.summitmidstream.com.
Use of Non-GAAP Financial Measures
We report financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). We also present adjusted EBITDA, segment adjusted EBITDA, Distributable Cash Flow, and Free Cash Flow, non-GAAP financial measures.
Adjusted EBITDA
We define adjusted EBITDA as net income or loss, plus interest expense, income tax expense, depreciation and amortization, our proportional adjusted EBITDA for equity method investees, adjustments related to MVC shortfall payments, adjustments related to capital reimbursement activity, share-based and noncash compensation, impairments, items of income or loss that we characterize as unrepresentative of our ongoing operations and other noncash expenses or losses, income tax benefit, income (loss) from equity method investees and other noncash income or gains. Because adjusted EBITDA may be defined differently by other entities in our industry, our definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other entities, thereby diminishing its utility.
Management uses adjusted EBITDA in making financial, operating and planning decisions and in evaluating our financial performance. Furthermore, management believes that adjusted EBITDA may provide external users of our financial statements, such as investors, commercial banks, research analysts and others, with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of our core ongoing business.
Adjusted EBITDA is used as a supplemental financial measure to assess:
-- the ability of our assets to generate cash sufficient to make future
potential cash dividends and support our indebtedness;
-- the financial performance of our assets without regard to financing
methods, capital structure or historical cost basis;
-- our operating performance and return on capital as compared to those of
other entities in the midstream energy sector, without regard to
financing or capital structure;
-- the attractiveness of capital projects and acquisitions and the overall
rates of return on alternative investment opportunities; and
-- the financial performance of our assets without regard to (i) the impact
of the timing of MVC shortfall payments under our gathering agreements or
(ii) the timing of impairments or other income or expense items that we
characterize as unrepresentative of our ongoing operations.
Adjusted EBITDA has limitations as an analytical tool and investors should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. For example:
-- adjusted EBITDA includes the Company's proportionate share of Adjusted
EBITDA from its unconsolidated equity method investee. Because this
entity is not consolidated, the Company does not control its operations
and does not have legal claim to its revenues, expenses, assets,
liabilities, or cash flows, other than distributions received. As a
result, this adjustment has limitations as an analytical measure and may
not be comparable to similarly titled measures presented by other
companies;
-- certain items excluded from adjusted EBITDA are significant components in
understanding and assessing an entity's financial performance, such as an
entity's cost of capital and tax structure;
-- adjusted EBITDA does not reflect our cash expenditures or future
requirements for capital expenditures or contractual commitments;
-- adjusted EBITDA does not reflect changes in, or cash requirements for,
our working capital needs; and
-- although depreciation and amortization are noncash charges, the assets
being depreciated and amortized will often have to be replaced in the
future, and adjusted EBITDA does not reflect any cash requirements for
such replacements.
We compensate for the limitations of adjusted EBITDA as an analytical tool by reviewing the comparable GAAP financial measures, understanding the differences between the financial measures and incorporating these data points into our decision-making process.
Distributable Cash Flow
We define Distributable Cash Flow as adjusted EBITDA, as defined above, less cash interest paid, cash paid for taxes, net interest expense accrued and paid on the senior notes, and maintenance capital expenditures.
Free Cash Flow
We define free cash flow as distributable cash flow attributable to common and preferred shareholders less growth capital expenditures, less investments in equity method investees, less dividends to common and preferred shareholders. Free cash flow excludes proceeds from asset sales and cash consideration paid for acquisitions.
We do not provide the GAAP financial measures of net income or loss or net cash provided by operating activities on a forward-looking basis because we are unable to predict, without unreasonable effort, certain components thereof including, but not limited to, (i) income or loss from equity method investees and (ii) asset impairments. These items are inherently uncertain and depend on various factors, many of which are beyond our control. As such, any associated estimate and its impact on our GAAP performance and cash flow measures could vary materially based on a variety of acceptable management assumptions.
About Summit Midstream Corporation
SMC is a value-driven corporation focused on developing, owning and operating midstream energy infrastructure assets that are strategically located in the core producing areas of unconventional resource basins, primarily shale formations, in the continental United States. SMC provides natural gas, crude oil and produced water gathering, processing and transportation services pursuant to primarily long-term, fee-based agreements with customers and counterparties in five unconventional resource basins: (i) the Williston Basin, which includes the Bakken and Three Forks shale formations in North Dakota; (ii) the Denver-Julesburg Basin, which includes the Niobrara and Codell shale formations in Colorado and Wyoming; (iii) the Fort Worth Basin, which includes the Barnett Shale formation in Texas; (iv) the Arkoma Basin, which includes the Woodford and Caney shale formations in Oklahoma; and (v) the Piceance Basin, which includes the Mesaverde formation as well as the Mancos and Niobrara shale formations in Colorado. SMC has an equity method investment in Double E Pipeline, LLC, which provides interstate natural gas transportation service from multiple receipt points in the Delaware Basin to various delivery points in and around the Waha Hub in Texas. SMC is headquartered in Houston, Texas.
Forward-Looking Statements
This press release includes certain statements concerning expectations for the future that are forward-looking within the meaning of the federal securities laws. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements and may contain the words "expect," "intend," "plan," "anticipate," "estimate," "believe," "will be," "will continue," "will likely result," and similar expressions, or future conditional verbs such as "may," "will," "should," "would" and "could." In addition, any statement concerning future financial performance (including future revenues, earnings or growth rates), payment of dividends on any series of stock, ongoing business strategies and possible actions taken by SMC or its subsidiaries are also forward-looking statements. Forward-looking statements also contain known and unknown risks and uncertainties (many of which are difficult to predict and beyond management's control) that may cause SMC's actual results in future periods to differ materially from anticipated or projected results. An extensive list of specific material risks and uncertainties affecting SMC is contained in its 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 16, 2026, as amended and updated from time to time. Any forward-looking statements in this press release are made as of the date of this press release and SMC undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.
SUMMIT MIDSTREAM CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2026 2025
-------------- ---------------
(In thousands)
ASSETS
Cash and cash equivalents $ 20,967 $ 9,274
Restricted cash 10,793 10,405
Accounts receivable 87,202 69,752
Other current assets 5,509 7,490
-------------- ---------------
Total current assets 124,471 96,921
Property, plant and equipment, net 1,839,292 1,844,146
Intangible assets, net 149,513 153,564
Investment in Double E 267,641 265,583
Other noncurrent assets 26,463 27,395
-------------- ---------------
TOTAL ASSETS $ 2,407,380 $ 2,387,609
============== ===============
LIABILITIES AND EQUITY
Trade accounts payable $ 21,414 $ 31,652
Accrued expenses 43,090 24,270
Deferred revenue 7,996 10,122
Ad valorem taxes payable 7,226 10,190
Accrued compensation and employee benefits 7,342 12,063
Accrued interest 27,666 30,045
Accrued environmental remediation 1,398 1,710
Accrued settlement payable 8,333 8,333
Current portion of long-term debt 1,748 21,223
Other current liabilities 5,672 27,185
-------------- ---------------
Total current liabilities 131,885 176,793
Deferred tax liabilities, net 92,536 73,635
Long-term debt, net 1,237,900 1,024,347
Noncurrent deferred revenue 17,817 18,398
Noncurrent accrued environmental
remediation 52 52
Other noncurrent liabilities 8,324 6,532
-------------- ---------------
TOTAL LIABILITIES 1,488,514 1,299,757
Commitments and contingencies
Mezzanine Equity
Subsidiary Series A Preferred Units -- 141,296
Equity
Series A Preferred Shares 64,168 110,468
Common Stock, $0.01 par value 136 122
Class B Common Stock, $0.01 par value 65 65
Additional paid-in capital 740,596 638,427
Accumulated deficit (206,590) (202,902)
-------------- ---------------
Total Company stockholders' equity 598,375 546,180
Noncontrolling interest 320,491 400,376
-------------- ---------------
Total Equity 918,866 946,556
-------------- ---------------
TOTAL LIABILITIES AND EQUITY $ 2,407,380 $ 2,387,609
============== ===============
SUMMIT MIDSTREAM CORPORATION AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended June 30, Six Months Ended June 30,
----------------------------- ------------------------------
2026 2025 2026 2025
------------- -------------- -------------- --------------
(In thousands, except per share amounts)
Revenues:
Gathering
services and
related fees $ 62,700 $ 64,182 $ 122,270 $ 128,347
Natural gas, NGLs
and condensate
sales 84,116 66,345 157,767 125,672
Other revenues 8,197 9,690 14,118 18,895
------------- -------------- -------------- --------------
Total revenues 155,013 140,217 294,155 272,914
------------- -------------- -------------- --------------
Costs and
expenses:
Cost of natural
gas and NGLs 49,092 35,914 88,464 71,348
Operation and
maintenance 39,812 39,241 78,029 72,771
General and
administrative 13,690 15,516 31,563 32,116
Depreciation and
amortization 26,851 30,055 53,559 58,572
Transaction costs 19 1,061 241 3,854
Acquisition
integration
costs 608 4,155 981 5,399
Gain (loss) on
asset sales,
net (26) -- 3 --
Long-lived asset
impairments -- 71 -- 71
------------- -------------- -------------- --------------
Total costs and
expenses 130,046 126,013 252,840 244,131
------------- -------------- -------------- --------------
Other income
(expense), net 1,290 378 700 9,435
Gain (loss) on
interest rate
swaps 947 (500) 797 (1,466)
Loss on sale of
business -- -- -- (43)
Interest expense (27,403) (23,864) (52,416) (46,401)
Income from
equity method
investees 5,832 4,802 11,069 9,642
------------- -------------- -------------- --------------
Income (loss)
before income
taxes 5,633 (4,980) 1,465 (50)
Income tax
benefit
(expense) (1,068) 752 (66) 456
------------- -------------- -------------- --------------
Net income
(loss) $ 4,565 $ (4,228) $ 1,399 $ 406
============= ============== ============== ==============
Net income (loss)
per share:
Common stock --
basic $ 0.12 $ (0.66) $ (0.28) $ (0.83)
Common stock --
diluted $ 0.11 $ (0.66) $ (0.28) $ (0.83)
Weighted-average
number of shares
outstanding:
Common stock --
basic 13,811 12,241 13,074 12,005
Common stock --
diluted 14,045 12,241 13,074 12,005
__________
SUMMIT MIDSTREAM CORPORATION AND SUBSIDIARIES
UNAUDITED OTHER FINANCIAL AND OPERATING DATA
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- ---------------------------
2026 2025 2026 2025
------------ ------------- ------------- ------------
(In thousands)
Other
financial
data:
Net income
(loss) $ 4,565 $ (4,228) $ 1,399 $ 406
Net cash
provided by
operating
activities 43,932 37,213 50,802 53,243
Capital
expenditures 24,993 26,390 44,270 46,996
Contributions
to equity
method
investees 6,508 575 6,508 3,063
Adjusted
EBITDA 60,699 61,094 114,891 118,600
Cash flow
available for
distributions
(1) 36,771 32,356 63,681 65,885
Free Cash Flow 9,403 9,222 20,779 20,576
Dividends (2) 3,385 3,382 51,277 6,741
Operating
data:
Aggregate
average daily
throughput --
natural gas
(MMcf/d) 899 912 886 899
Aggregate
average daily
throughput --
liquids
(Mbbl/d) 68 78 66 76
Double E
average daily
throughput
(MMcf/d) (3) 859 682 832 673
__________
(1) Cash flow available for distributions is also referred to as
Distributable Cash Flow, or DCF.
(2) Represents dividends declared and ultimately paid or expected to be paid
to preferred and common shareholders in respect of a given period. The
cash dividend payment for the six months ended June 30, 2026 includes a
payment of $46.3 million for accrued and unpaid dividends owed from March
15, 2020 to December 14, 2024. Excludes distributions paid on the
Subsidiary Series A Preferred Units issued at Summit Permian Transmission
Holdco, LLC. The board of directors of Summit Midstream Corporation
reinstated cash dividends on its Series A Preferred Stock beginning on
March 14, 2025.
(3) Gross basis, represents 100% of volume throughput for Double E.
SUMMIT MIDSTREAM CORPORATION AND SUBSIDIARIES
UNAUDITED RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- ---------------------------
2026 2025 2026 2025
------------ ------------- ------------ -------------
(In thousands)
Reconciliations
of net (loss)
income to
adjusted
EBITDA,
Distributable
Cash Flow, and
Free Cash Flow:
Net income
(loss) $ 4,565 $ (4,228) $ 1,399 $ 406
Add:
Interest
expense 27,403 23,864 52,416 46,401
Income tax
benefit
(expense) 1,068 (752) 66 (456)
Depreciation
and
amortization
(1) 27,085 30,289 54,028 59,041
Proportional
adjusted
EBITDA for
equity method
investees(2) 8,465 7,444 16,336 14,848
Adjustments
related to
capital
reimbursement
activity (3) (2,830) (1,930) (5,655) (3,876)
Share-based and
noncash
compensation 2,298 2,362 5,334 4,737
(Gain) loss in
fair value of
Tall Oak earn
out -- 544 503 (8,479)
Gain (loss) on
asset sales,
net (26) -- 3 --
Long-lived
asset
impairment -- 71 -- 71
Gain (loss) on
interest rate
swaps (947) 500 (797) 1,466
Loss on sale of
business -- -- -- 43
Other, net (4) (550) 7,732 2,327 14,040
Less:
Income from
equity method
investees 5,832 4,802 11,069 9,642
------------ ------------- ------------ -------------
Adjusted
EBITDA $ 60,699 $ 61,094 $ 114,891 $ 118,600
Less:
Cash interest
paid 2,006 5,309 43,334 39,508
Cash paid for
taxes -- 180 -- 265
Senior notes
interest
adjustment
(5) 17,789 17,789 -- 4,935
Maintenance
capital
expenditures 4,133 5,460 7,876 8,007
------------ ------------- ------------ -------------
Cash flow
available for
distributions
(6) $ 36,771 $ 32,356 $ 63,681 $ 65,885
Less:
Growth capital
expenditures 20,860 20,930 36,394 38,989
Investment in
equity method
investee 6,508 575 6,508 3,063
Distributions
on Subsidiary
Series A
Preferred
Units -- 1,629 -- 3,257
------------ ------------- ------------ -------------
Free Cash Flow $ 9,403 $ 9,222 $ 20,779 $ 20,576
============ ============= ============ =============
(1) Includes the amortization expense associated with our favorable gas
gathering contracts as reported in other revenues.
(2) Reflects our proportionate share of Double E.
(3) Adjustments related to capital reimbursement activity represent
contributions in aid of construction revenue recognized in accordance
with Accounting Standards Update No. 2014-09 Revenue from Contracts with
Customers.
(4) Represents items of income or loss that we characterize as
unrepresentative of our ongoing operations. For the six months ended June
30, 2026, the amount includes $2.5 million of transaction and other
costs. For the six months ended June 30, 2025, the amount includes $7.7
million of transaction and other costs and $5.4 million of integration
costs.
(5) Senior notes interest adjustment represents the net of interest expense
accrued and paid during the period. Interest on the 2029 Secured Notes is
paid semi-annually in arrears on each February 15 and August 15.
(6) Represents cash flow available for distribution to preferred and common
shareholders. Common dividends cannot be paid unless all accrued
preferred dividends are paid. Cash flow available for distributions is
also referred to as Distributable Cash Flow, or DCF.
SUMMIT MIDSTREAM CORPORATION AND SUBSIDIARIES
UNAUDITED RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES
Six Months Ended June 30,
------------------------------
2026 2025
-------------- --------------
(In thousands)
Reconciliation of net cash provided by
operating activities to adjusted EBITDA,
Distributable Cash Flow, and Free Cash
Flow:
Net cash provided by operating activities $ 50,802 $ 53,243
Add:
Interest expense, excluding amortization of
debt issuance costs 48,603 44,422
Income tax expense (benefit), excluding
federal income taxes (6) 98
Changes in operating assets and liabilities 19,948 15,462
Proportional adjusted EBITDA for equity
method investees (1) 16,336 14,848
Adjustments related to capital
reimbursement activity (2) (5,655) (3,876)
Realized gain on swaps (391) (1,784)
Other, net (3) 2,327 14,039
Less:
Distributions from equity method investees 15,519 13,955
Noncash lease expense 1,554 3,897
-------------- --------------
Adjusted EBITDA $ 114,891 $ 118,600
============== ==============
Less:
Cash interest paid 43,334 39,508
Cash paid for taxes -- 265
Senior notes interest adjustment (4) -- 4,935
Maintenance capital expenditures 7,876 8,007
-------------- --------------
Cash flow available for distributions (5) $ 63,681 $ 65,885
Less:
Growth capital expenditures 36,394 38,989
Investment in equity method investee 6,508 3,063
Distributions on Subsidiary Series A
Preferred Units -- 3,257
-------------- --------------
Free Cash Flow $ 20,779 $ 20,576
============== ==============
(1) Reflects our proportionate share of Double E.
(2) Adjustments related to capital reimbursement activity represent
contributions in aid of construction revenue recognized in accordance
with Accounting Standards Update No. 2014-09 Revenue from Contracts with
Customers.
(3) Represents items of income or loss that we characterize as
unrepresentative of our ongoing operations. For the six months ended June
30, 2026, the amount includes $2.5 million of transaction and other
costs. For the six months ended June 30, 2025, the amount includes $7.7
million of transaction and other costs and $5.4 million of integration
costs.
(4) Senior notes interest adjustment represents the net of interest expense
accrued and paid during the period. Interest on the 2029 Secured Notes is
paid semi-annually in arrears on each February 15 and August 15.
(5) Represents cash flow available for distribution to preferred and common
shareholders. Common dividends cannot be paid unless all accrued
preferred dividends are paid. Cash flow available for distributions is
also referred to as Distributable Cash Flow, or DCF.
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SOURCE Summit Midstream Corporation