Second Quarter 2026
Filed Aug 10, 2026Summit Midstream Corporation Reports Second Quarter 2026 Financial and Operating Results
Customer activity, connections and sequential Adjusted EBITDA improved, but Adjusted EBITDA was below the prior-year quarter, Piceance volumes and Segment Adjusted EBITDA declined, and capital expenditure guidance increased.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net incomeGAAP | $4.6 million | – | – |
| Adjusted EBITDAnon-GAAP | $60,699 (In thousands) | an increase of 12% relative to the first quarter of 2026 | – |
| Distributable Cash Flowother | $36.8 million | – | – |
| Free cash flowother | $9.4 million | – | – |
| Total reportable segment Adjusted EBITDAnon-GAAP | $69,746 (In thousands) | – | – |
| Corporate and Otherother | $9,047 (In thousands) | – | – |
| Rockies Segment Adjusted EBITDAnon-GAAP | $30,359 (In thousands) | an increase of $4.0 million relative to the first quarter of 2026 | – |
| Permian Segment Adjusted EBITDAnon-GAAP | $9,364 (In thousands) | an increase of $0.6 million relative to the first quarter of 2026 | – |
| Piceance Segment Adjusted EBITDAnon-GAAP | $8,662 (In thousands) | a decrease of $0.9 million relative to the first quarter of 2026 | – |
| Mid-Con Segment Adjusted EBITDAnon-GAAP | $21,361 (In thousands) | an increase of $2.0 million relative to the first quarter of 2026 | – |
| Aggregate average daily natural gas throughputother | 899 MMcf/d | increased 3.3% to 899 MMcf/d | – |
| Aggregate average daily liquids throughputother | 68 Mbbl/d | increased 6.3% to 68 Mbbl/d | – |
| Rockies average daily natural gas throughputother | 162 MMcf/d | a 3.0% decline in natural gas volume throughput | – |
| Piceance average daily natural gas throughputother | 214 MMcf/d | a 5.7% decline in volume throughput | – |
| Mid-Con average daily natural gas throughputother | 523 MMcf/d | a 9.9% increase in natural gas volume throughput to 523 MMcf/d | – |
| Double E average daily throughputother | 859 MMcf/d | a 6.7% increase in Double E volume throughput to 859 MMcf/d | – |
| Double E Adjusted EBITDA, net to SMCnon-GAAP | $9.4 million | – | – |
| Capital expendituresother | $25.0 million | – | – |
| Maintenance capital expendituresother | $4.1 million | – | – |
| MVC shortfall payments billed to customersother | $4.2 million | – | – |
| Gathering revenue associated with MVC shortfall paymentsother | $4.2 million | – | – |
| MVC shortfall payment adjustmentsother | $0.0 million | – | – |
| Adjusted EBITDA contributed by MVC shortfall payment mechanismsnon-GAAP | $4.2 million | – | – |
Full year 2026 outlook
- NoteAdjusted EBITDA: $235 million to $255 million
- NoteTotal capital expenditures, including Double E: $100 million to $120 million
Capital returns
- Established $35 million stock repurchase program.
- The Board of Directors continued to suspend cash dividends payable on the common stock for the period ended June 30, 2026.
What drove it
- Customer activity produced 36 new well connections during the second quarter.
- Mid-Con added 17 new Barnett well connections and three new Arkoma well connections during the quarter.
- Rockies connected 16 wells in the DJ Basin during the quarter.
- Rockies Segment growth reflected a 6.3% increase in liquids volume throughput and higher realized crude oil and NGL prices.
- Permian growth reflected a 6.7% increase in Double E volume throughput to 859 MMcf/d.
- SMC executed new firm transportation agreements on Double E and a new crude gathering agreement in Divide County, North Dakota.
- Eight rigs were operating behind the Rockies systems, including six in the Williston Basin and two in the DJ Basin, with approximately 75 DUCs across the footprint.
Concerns
- Piceance Segment Adjusted EBITDA decreased by $0.9 million relative to the first quarter of 2026 as volume throughput declined 5.7% amid temporary shut-ins, natural production declines and no new well connections during the quarter.
- The MVCs underpinning Piceance gathering agreements, representing substantially all MVC shortfall payments, expire at the end of the third quarter of 2026.
- Rockies natural gas volume throughput declined 3.0%, partially offsetting liquids-volume and pricing benefits.
- The company increased total capital expenditure guidance from $85 million to $105 million previously to $100 million to $120 million.
What to watch
- Management expects approximately 30 incremental Williston Basin well connections to connect primarily in the fourth quarter.
- SMC expects minimal impact on 2026 results from these incremental Williston wells, but stated they position the company for a strong start to 2027.
- The Double E Mainline Compression Expansion open season was extended through the end of August, and management expects to be in a position to make a final investment decision prior to its conclusion.
- Management said all previous Piceance shut-in production had resumed flowing as of the end of July.
- The tightened 2026 Adjusted EBITDA guidance range is $235 million to $255 million.
Balance sheet and cash flow
- As of June 30, 2026, unrestricted cash-on-hand was $21.0 million.
- As of June 30, 2026, $79 million was drawn under the $500 million ABL Revolver.
- Borrowing availability was $418 million, after accounting for $2.7 million of issued, but undrawn letters of credit.
- Gross availability based on the borrowing base calculation was $798 million, which is $298 million greater than the $500 million of lender commitments to the ABL Revolver.
- Interest coverage was 2.7x relative to a minimum interest coverage covenant of 2.0x.
- First lien leverage ratio was 0.3x relative to a maximum first lien leverage ratio of 2.5x.
- Total leverage ratio was approximately 4.1x.
- The Summit Permian Transmission Term Loan Facility had a balance of $350 million.
- Summit Midstream Permian had $10.8 million of cash-on-hand as of June 30, 2026.
- The Permian Transmission Term Loan remains non-recourse to SMC.
- Cash paid for capital expenditures for the six months ended June 30, 2026 was $44,270 (In thousands), compared with $46,996 (In thousands) for the six months ended June 30, 2025.
Analysis
Summit reported second-quarter net income of $4.6 million and Adjusted EBITDA of $60,699 (In thousands). Management described Adjusted EBITDA as increasing 12% relative to the first quarter of 2026, supported by 36 new well connections and higher activity across its footprint. However, the reported Adjusted EBITDA amount compares with $61,094 (In thousands) in the prior-year quarter.
Rockies was the principal sequential contributor, with Segment Adjusted EBITDA increasing by $4.0 million relative to the first quarter of 2026 to $30,359 (In thousands). The increase reflected a 6.3% rise in liquids throughput and higher realized crude oil and NGL prices, partly offset by a 3.0% decline in natural gas throughput. Mid-Con Segment Adjusted EBITDA increased by $2.0 million sequentially to $21,361 (In thousands), driven by a 9.9% increase in natural gas throughput to 523 MMcf/d after 17 Barnett and three Arkoma connections.
Piceance remained the operating offset. Its Segment Adjusted EBITDA decreased by $0.9 million sequentially to $8,662 (In thousands), with throughput down 5.7% because of temporary shut-ins, natural production declines and no new well connections. Management stated that all previous shut-in production had resumed flowing as of the end of July. The expiration at the end of the third quarter of 2026 of MVCs that represent substantially all MVC shortfall payments is also important, as MVC mechanisms contributed $4.2 million of total Adjusted EBITDA in the quarter.
Capital allocation shifted toward growth. Second-quarter capital expenditures totaled $25.0 million, including $4.1 million of maintenance capital expenditures, and full-year capital expenditure guidance was increased to $100 million to $120 million from $85 million to $105 million previously. The increase reflects 30 additional Williston wells added to the program or accelerated from 2027 and incremental Double E capital tied to new firm transportation agreements. The company also established a $35 million stock repurchase program while continuing to suspend common-stock dividends.
Liquidity disclosures showed $21.0 million of unrestricted cash-on-hand, $79 million drawn on the $500 million ABL Revolver and $418 million of borrowing availability. Management tightened full-year 2026 Adjusted EBITDA guidance to $235 million to $255 million. Near-term execution centers on the anticipated fourth-quarter Williston connections, the extended Double E Mainline Compression Expansion open season through the end of August, and a potential final investment decision before that process concludes.
Management, verbatim
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.
Heath Deneke, President, Chief Executive Officer and Chairman
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.
Heath Deneke, President, Chief Executive Officer and Chairman
With a solid first half behind us and customer activity accelerating across the footprint, we have better visibility into our second-half volume profile.
Heath Deneke, President, Chief Executive Officer and Chairman
Not in the filing
stated, not guessed- Total revenue
- Segment revenue by reportable segment
- GAAP gross profit or gross margin
- GAAP operating income or loss
- GAAP diluted EPS
- Non-GAAP EPS
- GAAP operating cash flow
- Net debt
- Repurchase activity during the quarter
- Common dividend amount
- Series A Preferred Stock dividend amount, record date and payment date, as the provided filing text is truncated
- Prior-quarter dollar amounts for net income, Distributable Cash Flow, free cash flow, revenue, gross margin, operating income and EPS
- Prior-year comparisons for net income, Distributable Cash Flow, free cash flow and capital expenditures for the second quarter
- Guidance for revenue, gross margin, operating expenses and tax rate
- Previous-quarter outlook section required for versus-prior-guidance comparisons
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.