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.