Summit Midstream (SMC) Q1 2026 earnings summary

Executive summary

• Q1 2026 Adjusted EBITDA was $54.2 million, meeting expectations despite lower volumes and gas prices in Arkoma, offset by gains in the Rockies from higher crude prices; net loss was $3.2 million.

• Connected 37 wells, including four under a new 10-year crude gathering agreement; five rigs active and about 80 DUCs behind systems.

• Macro environment is constructive, with higher crude prices and favorable natural gas outlook supporting increased activity and demand for infrastructure.

• Executed a new 10-year take-or-pay agreement for Double E Pipeline, increasing contracted volumes to over 1.7 Bcf/d, with Q1 2027 in-service target.

• Repaid $45 million of accrued Series A preferred dividends, clearing the way for common dividend reinstatement, and completed $42 million private placement to enhance financial flexibility.

Financial highlights

• Q1 2026 revenues were $139.1 million, up from $132.7 million in Q1 2025.

• Adjusted EBITDA: $54.2 million for Q1 2026, down from $57.5 million year-over-year.

• Distributable Cash Flow: $26.9 million; Free Cash Flow: $11.4 million.

• Capital expenditures: $19.3 million, with $3.7 million for maintenance.

• Ended quarter with $43.4 million in cash and $381 million available borrowing capacity under the $500 million ABL Revolver.

Outlook and guidance

• Reiterated full-year 2026 Adjusted EBITDA guidance of $225–$265 million, supported by increased producer activity in the Rockies and anticipated Mid-Con volume ramp.

• Management expects results to trend toward the midpoint of guidance, with momentum in Permian and Rockies segments.

• Anticipate meaningful volume increases in the second half of 2026 due to new well connections and strong activity.

• Long-term organic EBITDA growth of over $100 million projected by 2030.

• Targeting a 3.5x leverage ratio and planning to reinstate a common dividend in the near future.