مستندات أرباح شركة ساميت ميدستريم (SMC) للربع الرابع من عام 2025

<p>Image source: The Motley Fool.</p>
<h2>DATE</h2>
<p>Tuesday, March 17, 2026 at 10 a.m. ET</p>
<h2>CALL PARTICIPANTS</h2>
<ul>
<li> <p class="yf-1fy9kyt">President, Chief Executive Officer, and Chairman — J. Heath Deneke</p></li>
<li> <p class="yf-1fy9kyt">Chief Financial Officer — William J. Mault</p></li>
<li> <p class="yf-1fy9kyt">Chief Commercial Officer — Chris Tennant</p></li>
<li> <p class="yf-1fy9kyt">Managing Director, Investor Relations — Randall Burton</p></li>
</ul>
<p>Need a quote from a Motley Fool analyst? Email [email protected]</p>
<h2>Full Conference Call Transcript</h2>
<p>Randall Burton: Thanks, Operator, and good morning, everyone. If you do not already have a copy of our earnings release and presentation, please visit our website at www.summitmidstream.com, where you will find it on the homepage, Events and Presentations section, or Quarterly Results section. With me today to discuss our fourth quarter and full year 2025 financial and operating results are J. Heath Deneke, our President, Chief Executive Officer and Chairman; William J. Mault, our Chief Financial Officer; and Chris Tennant, our Chief Commercial Officer, along with other members of our senior management team. Before we start, I would like to remind you that our discussion today may contain forward-looking statements.</p>
<p>These statements may include, but are not limited to, our estimates of future volumes, operating expenses, and capital expenditures. They may also include statements concerning anticipated cash flow, liquidity, business strategy, and other plans and objectives for future operations. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can provide no assurance that such expectations will prove to be correct. Please see Summit Midstream Corp.'s Annual Report on Form 10-K for the fiscal year ended 12/31/2025, which the company filed with the SEC on 03/16/2026, as well as our other SEC filings, for a listing of factors that could cause actual results to differ materially from expected results.</p>
<p>Please also note that on this call, we use the terms EBITDA, segment adjusted EBITDA, adjusted EBITDA, distributable cash flow, and free cash flow. These are non-GAAP financial measures, and we have provided reconciliations to the most directly comparable GAAP measures in our most recent earnings release. And with that, I will turn the call over to Heath.</p>
<p>J. Heath Deneke: Great. All right. Well, thanks, Randall, and good morning, everyone. I wanted to start this morning by introducing you to a new voice you will hear on the call today. Chris Tennant, who joined Summit Midstream Corp. in February as our Chief Commercial Officer, is joining us. Chris brings more than three decades of experience across the oil, natural gas, and NGL value chain, and he will be leading our commercial organization going forward. Chris has hit the ground running since joining the team and is already making a strong impact across the organization. I am excited to have him here and look forward to the contributions he will make as we continue executing on Summit Midstream Corp.'s growth strategy.</p>
<p>Turning now to slide three. We are very pleased with the progress Summit Midstream Corp. made during the quarter and in the first couple of months of 2026. From a financial perspective, Summit Midstream Corp. generated approximately $58,600,000 of adjusted EBITDA in the fourth quarter, along with $33,700,000 of distributable cash flow and $17,000,000 of free cash flow. Operationally, and despite the weakening of oil prices in 2025, we continue to see solid development activity across our systems, with seven rigs currently running behind our footprint and approximately 90 drilled but uncompleted wells. At this point, we have visibility to between 116 and 126 well connections in 2026, which is relatively modest compared to prior years.</p>
<p>However, we could see more activity accelerate in the second half of the year as producers look to take advantage of the recent run-up in oil prices. On the commercial front, we have made a tremendous amount of progress since our last update. Starting with the Double E pipeline, we recently signed two 11-plus-year transportation agreements totaling 440,000,000 cubic feet per day of firm capacity. In addition, we received an affirmative FID notice on the previously announced Producers Midstream 200,000,000 cubic feet per day agreement that we announced last year. In the aggregate, this represents more than 0.5 Bcf/d of new long-term take-or-pay agreements that we have executed over the past six months.</p>
<p>With these new agreements and the corresponding step-up in committed take-or-pay volumes over the next several years, our Permian segment adjusted EBITDA is expected to grow from $34,000,000 in 2025 to roughly $60,000,000 by 2029. With these new contracts, Double E's existing mainline capacity is now generally fully subscribed. However, as Chris will get into further in the call, we have launched a binding open season to solicit additional customer commitments to support a mainline compression project that would expand the pipeline's capacity by approximately 50% to roughly 800,000,000 cubic feet per day.</p>
<p>Additionally, we successfully refinanced the Double E capital structure with a new $440,000,000 term loan facility, which enables an $85,000,000 distribution back to Summit Midstream Corp. that we intend to use to repay $45,000,000 of accrued and unpaid dividends and reduce borrowings under the ABL. We will walk through the details of the transaction later in the call, but this transaction is a major win for the company as it increases our financial flexibility while allowing us to continue to execute on these high-return growth projects at Double E, including the mainline compression project, without straining Summit Midstream Corp.'s corporate balance sheet.</p>
<p>In addition, the repayment of the accrued dividends on the Series A preferred stock further simplifies Summit Midstream Corp.'s balance sheet and is also an important step toward enabling a sustainable return of capital program for our shareholders in the future. We are also very excited about the growth outlook in the Rockies segment as we continue to see development activity up in the Bakken shift towards our pipeline footprint in Williams and Divide Counties. As Chris will cover later in the call, our Polar and Divide System is uniquely positioned to benefit from that shift as evidenced by a new long-term crude gathering agreement that we executed in the fourth quarter in Divide County.</p>
<p>There is also a lot of positive momentum building up around our G&amp;P system in the DJ Basin that we are excited about as well. I am sure we will be updating everyone on this as we move throughout the rest of 2026. And finally, at the end of the call, I wanted to walk investors through a snapshot of Summit Midstream Corp.'s strong and highly visible organic growth outlook that will be led by our Permian and Rockies segments. We are very excited about the commercial momentum we have around the business and the growing backlog of very attractive, high-returning organic growth projects that we believe position the company to achieve over $100,000,000 of adjusted EBITDA growth by 2030.</p>
<p>We believe we will generate a tremendous amount of shareholder value in the coming years as we execute on these growth plans, maintain our financial discipline, and continue our focus on improving the balance sheet. And with that, I will turn the call over to Bill to walk through our financial results and guidance on slide four.</p>
<p>William J. Mault: Thanks, Heath, and good morning, everyone. And before jumping to slide four, why do we not stay on page three. Summit Midstream Corp. reported fourth quarter adjusted EBITDA of $58,600,000, resulting in full year 2025 adjusted EBITDA of $243,000,000. Capital expenditures totaled $19,000,000 for the quarter and $89,000,000 for the full year. With respect to Summit Midstream Corp.'s balance sheet, we ended the year with net debt of approximately $930,000,000 and approximately $890,000,000 pro forma for the $40,000,000 repayment of the ABL associated with the $85,000,000 one-time distribution from the new Summit Permian Transmission term loan. This brings pro forma leverage to approximately 3.9x.</p>
<p>Our available borrowing capacity at the end of the fourth quarter totaled approximately $387,000,000, which included roughly $1,000,000 of undrawn letters of credit. Now on to the segments. The Rockies segment, which includes our DJ and Williston Basin systems, generated adjusted EBITDA of $27,800,000, a decrease of $1,200,000 relative to the third quarter, primarily driven by a decline in liquids volumes due to natural production declines, partially offset by modest growth in natural gas volumes. Liquids volumes averaged approximately 66,000 barrels per day during the quarter, a decrease of roughly 6,000 barrels per day relative to the third quarter, primarily due to natural production declines and no new well connections.</p>
<p>Natural gas volumes averaged approximately 160,000,000 cubic feet per day, an increase of roughly 2,000,000 cubic feet per day relative to the third quarter as wells connected early in the year continued to ramp toward peak production. During the quarter, we connected 33 new wells in the DJ Basin, which we expect to reach peak production in 2026. We currently have six rigs running behind the system, including four in the Williston and two in the DJ, and approximately 65 DUCs, which provides good visibility into expected development activity in 2026.</p>
<p>The Permian Basin segment, which includes our 70% interest in the Double E pipeline, reported adjusted EBITDA of $8,700,000, an increase of $100,000 relative to the third quarter, primarily due to higher volume throughput on the pipeline. Volume throughput on Double E averaged 861,000,000 cubic feet per day during the quarter. The Piceance segment reported adjusted EBITDA of $10,000,000, a decrease of $2,500,000 relative to the third quarter, primarily due to a modest decline in volume throughput and certain revenues recognized in the prior quarter. Finally, the Mid-Con segment reported adjusted EBITDA of $21,500,000, a decrease of approximately $2,100,000, primarily due to lower volume throughput from natural production declines across the Arkoma and Barnett systems.</p>
<p>During the quarter, we connected six wells in the Arkoma and no new wells in the Barnett. Subsequent to quarter-end, we connected an additional six wells in the Arkoma, and there is currently one rig running behind the Arkoma and approximately 20 DUCs. Let me now turn to page four and discuss our outlook for 2026. We are establishing 2026 adjusted EBITDA guidance of $225,000,000 to $265,000,000 and total capital expenditures of approximately $85,000,000 to $105,000,000, which includes $35,000,000 to $50,000,000 in base business growth capital, approximately $15,000,000 to $20,000,000 of maintenance capital, and approximately $35,000,000 of contributions to the Double E joint venture.</p>
<p>The $35,000,000 of contributions to the Double E JV are expected to be fully funded through the new term loan facility we closed yesterday. The majority of the base business growth capital will be directed toward pad connections in the Rockies and Mid-Con regions, where we continue to see steady development activity behind our systems. Similar to previous years, our guidance range incorporates real-time feedback we are receiving from our customers regarding their development plans, and we actively track rigs and completion crews across our systems to ensure well connects remain on schedule.</p>
<p>Just as a reminder of our risking methodology, if our producers hit their current turn-in-line dates and production targets, we would expect to be near the high end of our adjusted EBITDA guidance range. The midpoint of the range reflects modest risking applied to current drilling schedules, while the low end assumes additional delays in well connects expected later in the year, which could push some of that activity into 2027. Across our footprint today, we currently have seven rigs running and approximately 90 DUCs behind our system, which provides line of sight to the 116 to 126 well connections expected in 2026.</p>
<p>Approximately 80% of those expected well connections are crude oil or oil-weighted wells, with the remaining 20% natural gas-oriented. Commodity price assumptions for this range assume average crude oil prices in the mid-$60s and a natural gas price of approximately $3.40 per MMBtu. There has obviously been a lot of upside movement in crude oil prices over the past few weeks, which, if sustained throughout the year, could lead to acceleration of activity from our customers and improvement in product margin associated with certain percentage-of-proceeds contracts in the DJ Basin. In the Rockies, we are currently expecting 90 to 100 well connects in 2026, a fairly even split between the DJ and the Williston.</p>
<p>This level of activity, along with the 33 wells connected in the fourth quarter, will drive volume throughput growth in natural gas and liquids. Additionally, of the roughly 45 to 50 wells expected in the Williston, we will be gathering both crude and produced water for nine of those wells, for which we expect around a three-to-one produced water to crude oil ratio. Expected well connections in the DJ are a little bit lower in 2026 than the historical average. This is primarily due to the recently announced acquisition of Verdad Resources, a key customer behind the system, by Peoria Resources, a subsidiary of J.P. Morgan’s core.</p>
<p>Long term, we are excited about the acquisition and expect it to be a net positive to development, but as with all upstream consolidation, it has created some near-term delays in development. In the Mid-Con, we are expecting 26 wells to be connected to the system, including nine in the Arkoma and 17 in the Barnett. In the Arkoma, all but three of those wells are already connected and flowing, and in the Barnett, all 17 wells are currently in DUC inventory.</p>
<p>Our key customer in the Arkoma is evaluating additional development in late 2026 and early 2027, but we have not included that potential activity in our financial guidance until we get confirmation that they intend to drill and complete those wells. With the level of activity included in our financial guidance, we would expect volumes in Mid-Con to be relatively flat year over year. In the Piceance, we are expecting no new well connects in 2026, which will result in continued decline in volume and EBITDA relative to 2025. Additionally, shortfall payments are expected