Summit Midstream Corporation Reports $113.175 Million Net Loss for 2024

Summit Midstream Corporation (SMC) reported a net loss of $113.175 million for the year ended December 31, 2024, compared to a net loss of $38.947 million in 2023. Total revenues decreased by 6% to $429.619 million, primarily due to a 19% decrease in gathering services and related fees, partially offset by a 9% increase in natural gas, NGLs, and condensate sales. Total costs and expenses increased by 23% to $471.555 million, largely driven by a 32% increase in general and administrative expenses and a $68.26 million long-lived asset impairment charge. The company's reportable segment adjusted EBITDA totaled $239.037 million in 2024, down from $291.766 million in 2023.

Significant changes during 2024 included the completion of the Summit Utica sale for $625 million and the Mountaineer transaction for $70 million, both resulting in substantial gains. The company also undertook debt reduction and maturity optimization, including tender offers and redemptions of various notes, and issued $575 million in 2029 Secured Notes. The Corporate Reorganization, completed on August 1, 2024, transitioned Summit Midstream Partners, LP into a wholly-owned subsidiary of SMC. Finally, the company completed the Tall Oak Acquisition on December 2, 2024, for a total consideration of $425 million, including cash, earn-out payments, and the issuance of Class B Common Stock and Partnership Common Units.

Operational developments included an aggregate average daily natural gas throughput of 862 MMcf/d and an aggregate average daily liquids throughput of 72 Mbbl/d in 2024. These figures represent a 33% decrease in natural gas throughput and an 8% decrease in liquids throughput compared to 2023. The decrease in natural gas throughput was primarily attributed to the divestiture of Northeast operations. The company's key customers include Chord Energy Corporation, Kraken Resources, Zavanna LLC (Rockies), ExxonMobil Corporation, Marathon Oil Corporation, and Matador Resources Company (Permian), QB Energy and Terra Energy Partners (Piceance), and TotalEnergies Gas & Power North America, Inc. and Calyx Energy (Mid-Con). As of December 31, 2024, SMC employed 272 people.

The company's financial performance was significantly impacted by the divestitures of its Northeast assets and the debt reduction and maturity optimization initiatives. The Tall Oak acquisition is expected to contribute to future growth, but its integration presents risks. The company's outlook is contingent upon various factors, including commodity prices, capital market conditions, and regulatory changes. The company does not expect to pay dividends on its common stock in the foreseeable future. The company's risk factors include insufficient cash flow for dividends, dependence on a small number of customers, commodity price volatility, competition, and regulatory and environmental risks.

The 10-K filing also details the company's cybersecurity risk management strategy, governance, and compliance with various accounting standards, including disclosures on reportable segments and income tax disclosures. The filing includes a report from Deloitte & Touche LLP, the independent registered public accounting firm, expressing an unqualified opinion on the company's financial statements and internal control over financial reporting. The filing also includes information on legal proceedings, including the settlement of a matter related to a pipeline rupture.