Download PDF

1. Company Snapshot

1.a. Company Description

Summit Midstream Partners, LP focuses on owning, developing, and operating midstream energy infrastructure assets primarily shale formations in the continental United States.The company provides natural gas gathering, compression, treating, and processing services, as well as crude oil and produced water gathering services.Its unconventional resource basins include the Utica and Point Pleasant shale formations in southeastern Ohio; the Williston Basin that consists of the Bakken and Three Forks shale formations in northwestern North Dakota; the Denver-Julesburg Basin, which include the Niobrara and Codell shale formations in Colorado; the Permian Basin that comprise the Bone Spring and Wolfcamp shale formations in New Mexico; the Piceance Basin, which include the Mesaverde formation, and the Mancos and Niobrara shale formations in western Colorado; the Barnett Shale formation in north-central Texas; and the Marcellus Shale formation in northern West Virginia.


The company also owns an ownership interest in Ohio Gathering, which owns and operates natural gas gathering and condensate stabilization facility in the Utica Shale in southeastern Ohio.It serves natural gas and crude oil producers.Summit Midstream GP, LLC operates as a general partner of the company.


The company was founded in 2009 and is headquartered in Houston, Texas.

Show Full description

1.b. Last Insights on SMLP

Positive drivers behind Summit Midstream Partners' recent developments include the company's debt restructuring efforts, which have lowered interest expenses and boosted cash flows. The sale of assets in the Marcellus Basin has also contributed to the company's improved financial position. Additionally, the planned conversion from an MLP to a C-corp, which was recently approved by unitholders, is expected to broaden the shareholder base and potentially lead to higher multiples. The company has also taken steps to optimize cash flow and reduce debt, including a recent upsized offering of $575 million in senior secured second lien notes due 2029, which will be used to repurchase or redeem existing notes and pay accrued interest.

1.c. Company Highlights

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

Card image cap

Summit Midstream: Rough Ride Ahead

Mar -08

Source: seekingalpha.com

Card image cap

Summit Midstream's Stagnation Is Temporary

Dec -11

Source: seekingalpha.com

Card image cap

Summit Midstream's Earnings Reaffirm It As A Great Small Cap

Aug -27

Source: seekingalpha.com

Card image cap

Common Stock of Summit Midstream Corporation to Commence Trading on NYSE on Thursday, August 1

Jul -31

Source: prnewswire.com

Card image cap

Independent Power Producers Sector Has Come Into Favor

Jul -25

Source: seekingalpha.com

Card image cap

Summit Midstream Partners, LP Announces Expiration and Pricing Terms of Cash Tender Offer to Purchase Any and All of Its Subsidiaries' 8.500% Senior Secured Second Lien Notes Due 2026

Jul -23

Source: prnewswire.com

Card image cap

Summit Midstream: Refinancing And Conversion To C-Corp Could Mean A Double In The Stock

Jul -20

Source: seekingalpha.com

Card image cap

Summit Unitholders Approve Conversion to a C-Corporation

Jul -18

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.81%)

6. Segments

Rockies

Expected Growth: 0.8%

The Rockies segment from Summit Midstream Partners, LP exhibits 0.8 growth driven by increasing natural gas production in the DJ Basin and Powder River Basin, coupled with rising demand for midstream services. Additionally, the region's proximity to major markets and existing infrastructure supports growth.

Piceance

Expected Growth: 0.9%

Piceance's 0.9 growth is driven by increasing natural gas production in the DJ Basin, supported by Summit Midstream's strategic infrastructure investments and strong demand from nearby markets. Additionally, the region's favorable geology and operator activity contribute to the segment's growth.

Northeast

Expected Growth: 0.7%

Northeast segment of Summit Midstream Partners, LP, with 0.7 growth, is driven by increasing natural gas production in the Marcellus and Utica Shales, supported by strong demand from nearby markets, and strategic acquisitions and expansions of gathering and processing infrastructure.

Barnett

Expected Growth: 0.85%

Barnett from Summit Midstream Partners, LP's 0.85 growth driven by increasing natural gas production, strong demand from power generation and industrial sectors, and strategic infrastructure investments. Additionally, favorable regulatory environment, improving operational efficiencies, and growing Permian Basin activity contribute to the segment's growth.

Permian

Expected Growth: 1.1%

Permian's 1.1 growth driven by increasing crude oil production, supported by strong demand from nearby refineries and export terminals. Additionally, Summit Midstream Partners' strategic infrastructure investments and operational efficiencies contribute to the segment's growth.

Corporate and Other

Expected Growth: 0.95%

Summit Midstream Partners, LP's Corporate and Other segment growth of 0.95 is driven by increased investments in growth projects, strategic acquisitions, and cost savings initiatives. Additionally, the segment benefits from a diversified revenue stream, including management fees from joint ventures and interest income from investments.

7. Detailed Products

Gathering Services

Summit Midstream Partners, LP provides gathering services to oil and gas producers, which involves the transportation of oil and gas from the wellhead to a central processing facility.

Processing Services

Summit Midstream Partners, LP offers processing services, which include the separation, dehydration, and treatment of natural gas and natural gas liquids.

Transmission Services

Summit Midstream Partners, LP provides transmission services, which involve the transportation of natural gas and natural gas liquids from processing facilities to market hubs or end-users.

Storage Services

Summit Midstream Partners, LP offers storage services, which provide a safe and reliable way to store natural gas and natural gas liquids.

8. Summit Midstream Partners, LP's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Summit Midstream Partners, LP is medium due to the availability of alternative energy sources and transportation methods.

Bargaining Power Of Customers

The bargaining power of customers for Summit Midstream Partners, LP is low due to the company's diversified customer base and long-term contracts.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Summit Midstream Partners, LP is medium due to the company's dependence on a few key suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants for Summit Midstream Partners, LP is low due to the high barriers to entry in the midstream energy industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Summit Midstream Partners, LP is high due to the competitive nature of the midstream energy industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 63.62%
Debt Cost 9.53%
Equity Weight 36.38%
Equity Cost 15.75%
WACC 11.80%
Leverage 174.91%

11. Quality Control: Summit Midstream Partners, LP passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Delek Logistics Partners

A-Score: 6.4/10

Value: 4.9

Growth: 3.0

Quality: 4.6

Yield: 10.0

Momentum: 7.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Genesis Energy

A-Score: 5.8/10

Value: 7.0

Growth: 3.4

Quality: 1.5

Yield: 9.0

Momentum: 7.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
NGL Energy Partners

A-Score: 4.7/10

Value: 7.6

Growth: 3.6

Quality: 5.0

Yield: 0.0

Momentum: 9.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Overseas Shipholding Group

A-Score: 4.2/10

Value: 6.6

Growth: 5.9

Quality: 5.3

Yield: 0.0

Momentum: 5.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Martin Midstream Partners

A-Score: 3.8/10

Value: 9.8

Growth: 2.6

Quality: 3.7

Yield: 1.0

Momentum: 1.5

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Summit Midstream Partners

A-Score: 3.1/10

Value: 8.4

Growth: 1.0

Quality: 2.6

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

38.05$

Current Price

38.05$

Potential

-0.00%

Expected Cash-Flows