(Source: Shutterstock.com)
Summit Midstream’s transformation into a crude-focused midstream company resulted in a major drop in natural gas traffic for the second quarter, as throughput declined 46%, to 716 MMcf/d, from first-quarter 2024.
In March, Summit announced a $625 million deal to sell its assets in the Utica Shale to an MPLX subsidiary. Company leadership said the focus would be on oil-rich basins in the Permian Basin and Rockies. Summit no longer owns any Northeast U.S. assets.
Summit made the deal after beginning a strategic review process in 2023 to increase shareholder value. Besides moving away from its natural gas assets in the Northeast, the company also reorganized from an MLP to a C-Corporation.
Summit closed on a refinancing of its capital structure, including a new asset-based lending facility worth $500 million and a $575 million senior notes issue. Both mature in 2029.
"Summit has made considerable progress towards executing its long-term strategy over the last four months,” said Heath Deneke, Summit CEO, chairman and president. “With this maturity extension and improved liquidity profile, Summit is well positioned with a strong balance sheet and additional financial flexibility to support execution of the base business plan, continue to pursue opportunistic, bolt-on acquisitions and continue to utilize our strong free cash flow generating platform.”
During the second quarter, the company’s liquids volumes increased 1.4% to 75 MMbbl/d relative to the first three months of the year.
Summit recorded a net loss of $23.8 million for the quarter with adjusted EBITDA of $43.1 million.
Recommended Reading
The New Minerals Frontier Expands Beyond Oil, Gas
2025-04-09 - How to navigate the minerals sector in the era of competition, alternative investments and the AI-powered boom.
Italy's Intesa Sanpaolo Adds to List of Banks Shunning Papua LNG Project
2025-02-13 - Italy's largest banking group, Intesa Sanpaolo, is the latest in a list of banks unwilling to finance a $10 billion LNG project in Papua New Guinea being developed by France's TotalEnergies, Australia's Santos and the U.S.' Exxon Mobil.
What's Affecting Oil Prices This Week? (Feb. 3, 2025)
2025-02-03 - The Trump administration announced a 10% tariff on Canadian crude exports, but Stratas Advisors does not think the tariffs will have any material impact on Canadian oil production or exports to the U.S.
CPP Wants to Invest Another $12.5B into Oil, Gas
2025-03-26 - The Canada Pension Plan’s CPP Investments is looking for more oil and gas stories—in addition to renewable and other energies.
Shell Raises Shareholder Distributions and LNG Sales Target, Trims Spending
2025-03-25 - Shell trimmed its annual investment budget to a $20 billion to $22 billion range through 2028 after spending $21.1 billion last year.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.