Summit Midstream Corp. Q1 FY2025 earnings call

• Corporate activities: In January, raised $250 million of senior secured second lien notes, and in March, reinstated cash dividend on Series A preferred stock and closed the acquisition of Moonrise Midstream.
• Operational highlights: Connected 41 wells in the first quarter; in the Rockies segment, connected 30 wells including 22 in DJ and 8 in Williston; commissioned an optimization project in March in the Rockies to improve adjusted EBITDA margins from Q2; Rockies segment has 4 rigs running and over 90 DUCs; Mid-Con segment has 2 rigs running and 16 DUCs; Permian segment sees gas volumes increase on Double E pipeline with average daily throughput close to 700 million as of the week mentioned

The Rockies segment generated adjusted EBITDA of $24.9 million, which is approximately 43.3% of the total first quarter adjusted EBITDA of $57.5 million. It saw an increase of $1.6 million from the fourth quarter, driven by an 8.8% rise in liquids volume throughput, higher freshwater sales, and the acquisition of Moonrise Midstream, partially offset by a 1.5% decrease in natural gas volume throughput. The Permian Basin segment reported adjusted EBITDA of $8.3 million, a $0.5 million increase from the fourth quarter, primarily due to higher volume throughput on the Double E pipeline. The Piceance segment had adjusted EBITDA of $11.8 million, flat with the fourth quarter, mainly because of lower operating expenses offset by a 4% decrease in volume throughput. The Mid-Con segment recorded adjusted EBITDA of $22.5 million, a $9.6 million increase from the fourth quarter, largely due to the acquisition of Tall Oak and a 48% increase in volume throughput

• Reiterated full-year 2025 adjusted EBITDA guidance of $245 million to $280 million and capital expenditures guidance of $65 million to $75 million.
• If remaining Rockies segment wells in the second half are deferred, would trend towards the lower end of the guidance range

• Crude oil price reduction since early March 2025 could dampen activity levels in the crude-oriented Rockies segment in the second half. If prices weaken further towards the low 50s, potential slippage in well completion activities and turn-in-line dates

Q: There are no questions at this time A: