Summit Midstream Corp. Q2 FY2025 earnings call

• Active first half with 47 new well connections and 3 active drilling rigs, fourth rig expected in Arkoma later this month.
• Second quarter adjusted EBITDA was $61 million, slightly below expectations due to well underperformance, completion delays, and lower commodity prices.
• Executed 10-year extension of gathering agreements in Williston, increasing weighted average contract life to 8 years, and picked up additional acreage.
• Anchor customer in Arkoma preparing 20-well development program, completions to start Q4 2025 and continue into 2026.
• Signed 10-year precedent agreement for 100 million a day firm capacity on Double E in Permian, with service date expected Q4 2026.
• Added to Russell 3000, Russell 2000, and Russell Microcap indices during June reconstitution.

The Rockies segment (including DJ and Williston Basin systems) generated adjusted EBITDA of $25.2 million, an increase of $0.4 million from the first quarter, due to a 5.4% increase in liquids volume throughput and a 14% increase in natural gas volume throughput from the Moonrise Midstream acquisition, but offset by reduced realized commodity prices, lower margin mix, and increased operating expenses. The Permian Basin segment (including 70% interest in Double E Pipeline) reported adjusted EBITDA of $8.3 million, a slight increase due to higher volume throughput. The Piceance segment recorded adjusted EBITDA of $10.5 million, a decrease of $1.3 million primarily due to higher operating expenses and a 1.1% volume decline. The Mid-Con segment had adjusted EBITDA of $24.9 million, an increase of $2.4 million from the first quarter, driven by a 2.9% volume increase and higher natural gas sales from new wells in Arkoma and Barnett.

• Expect to end the year towards the low end of original adjusted EBITDA guidance range, primarily timing related.
• Volumes expected to recover as we move into 2026, with total well count for the year remaining in line with original expectations.

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