Summit Midstream Corp (NYSE: SMC)

Summit Midstream Corporation is a value driven midstream energy company that develops, owns and operates gathering, compression, treating, processing and transmission assets located in the core producing areas of unconventional resource basins across the continental United States. The company’s infrastructure gathers natural gas, crude oil and produced water from well pads and delivers these hydrocarbons to downstream pipelines, rail terminals or disposal wells for end use markets.

The company generates revenue mainly by providing gathering, compression, treating and processing services under long term fee based agreements with producers, which offer stable cash flows with minimal direct commodity price exposure. Additional revenue comes from percent of proceeds arrangements, the sale of retained natural gas, NGLs and condensate, and from transportation fees on the Double E Pipeline, where the company holds a 70 percent equity interest and acts as operator. These activities together constitute the bulk of the company’s sales.

The company operates through the following segments: Rockies, Permian, MidCon and Piceance.

• Rockies: This segment encompasses the company’s assets in the Williston Basin and DJ Basin, including the Polar and Divide system in North Dakota and the Niobrara G&P system spanning Colorado and Nebraska. The Polar and Divide system gathers crude oil and produced water, delivering them to the Dakota Access Pipeline, COLT Hub rail facility and Enbridge’s North Dakota system, while the Niobrara G&P system provides natural gas gathering and processing with plants capable of up to 335 MMcf/d, freshwater supply for well completions and residue gas delivery to multiple regional pipelines. Key customers include Chord Energy Corporation, Kraken Resources, Formentera, Zavanna LLC, Bison Oil and Gas IV, Chevron Corporation, SM Energy Company, Fundare and Verdad Resources.

• Permian: This segment consists of the company’s equity method investment in the Double E Pipeline, a 135 mile FERC regulated interstate natural gas transmission line that runs from the Delaware Basin to the Waha hub in Texas. Double E has a design capacity of 1.6 Bcf/d and is supported by long term take or pay contracts with ExxonMobil Corporation, ConocoPhillips Company, EOG Resources Inc. and Matador Resources Company. As operator, the company earns transportation fees for firm and interruptible service on the pipeline, contributing stable, fee based revenue.

• MidCon: This segment includes the DFW Midstream system in the Barnett Shale of Texas and the Tall Oak system in central Oklahoma. DFW Midstream gathers natural gas via electric drive compressors, interconnects with intrastate pipelines and delivers to major Texas and Louisiana gas hubs, with TotalEnergies Gas & Power North America as a primary customer. Tall Oak provides gathering and processing for liquids rich natural gas from the Woodford and Caney formations, offering access to MarkWest’s Arkoma Connector, Enable Texas systems and NGL routes via ONEOK and Targa, with Calyx Energy as its key customer.

• Piceance: This segment comprises the Grand River gathering system in Garfield County, Colorado, which gathers natural gas from directional wells targeting the Mesaverde, Mancos and Niobrara formations. The system compresses, dehydrates and processes the gas before delivering it to the Meeker and Williams processing complexes, while also allowing the company to retain and sell condensate that naturally separates from the stream. Principal customers are QB Energy and Flywheel Energy.

Summit Midstream Corporation holds a competitive position in the U. S. midstream sector due to its strategically located assets in major shale plays, which enable it to capture well head volumes with minimal routing delays. The company’s focus on long term fee based contracts reduces direct exposure to commodity price swings, while its deep relationships with large producers support high utilization of its gathering and processing infrastructure. These factors, combined with a disciplined capital allocation approach, help the company differentiate itself from pure play competitors and integrated majors that rely more heavily on commodity linked revenues.

The company serves a diverse group of large natural gas and crude oil producers operating in its core basins. Notable customers include Chord Energy Corporation, Kraken Resources, Formentera, Zavanna LLC, Bison Oil and Gas IV, Chevron Corporation, SM Energy Company, Fundare, Verdad Resources, TotalEnergies Gas & Power North America, Calyx Energy, QB Energy, Flywheel Energy, ExxonMobil Corporation, ConocoPhillips Company, EOG Resources Inc. and Matador Resources Company. In addition, the company’s Double E pipeline serves other shippers such as ONEOK, Energy Transfer and various regional utilities, further broadening its customer base across the midstream value chain.