Summit Midstream Partners, LP (SMLP): history, ownership, mission, how it works & makes money

A Brief History of Summit Midstream Partners, LP (SMLP)

Formation and Initial Public Offering

Summit Midstream Partners, LP (SMLP) was formed in 2012. The company went public on September 26, 2013, through an initial public offering (IPO) of 10 million common units at a price of $22.00 per unit.

The IPO raised approximately $220 million, and net proceeds were used to finance acquisitions and fund capital expenditures.

Acquisitions and Growth Trajectory

In 2014, SMLP acquired the East Texas Natural Gas Gathering System from a subsidiary of the Anadarko Petroleum Corporation for $200 million, marking a significant expansion of its operational footprint.

By 2015, SMLP had added the Woods Crossroads System in West Virginia, expanding its total gathering systems to approximately 550 miles across various regions.

Financial Performance

For the fiscal year ending December 31, 2020, SMLP reported total revenues of $236.8 million, with a net income of $28.2 million. The Adjusted EBITDA for the year was $122.5 million.

Recent Developments

As of the end of 2022, SMLP announced a total capital expenditure plan of approximately $50 million for ongoing projects and system enhancements. The company's total debt as of December 31, 2022, was $600 million.

Operational Metrics

In Q1 2023, SMLP reported average daily throughput of approximately 1.2 billion cubic feet per day (Bcf/d), reflecting the company’s capability to handle significant volumes of natural gas.

Financial Table Summary

A Who Owns Summit Midstream Partners, LP (SMLP)

Overview of Ownership Structure

Summit Midstream Partners, LP (SMLP) operates in the midstream energy sector, focusing on the gathering and transportation of natural gas. The ownership of SMLP is characterized by its publicly traded partnership structure.

Key Institutional Investors

As of the latest available data, several institutional investors own significant stakes in Summit Midstream Partners, LP. The following table outlines major shareholders and their respective ownership percentages:

Insider Ownership

Insider ownership plays a crucial role in the governance of SMLP. The following details summarize the ownership stakes held by key executives and board members:

Partnership and Joint Ventures

Summit Midstream Partners, LP engages in partnerships that influence its ownership structure. Below is a summary of key joint ventures:

• Summit Utica, LLC - A joint venture focused on natural gas gathering in the Utica Basin.
• Summit Permian, LLC - Concentrates on the Permian Basin's midstream solutions.
• Summit Eagle Ford, LLC - Engaged in gathering services within the Eagle Ford Shale region.

Recent Financial Performance

Summit Midstream Partners, LP reported the following financial metrics for the fiscal year ending 2022:

Market Capitalization

The market capitalization of Summit Midstream Partners, LP is approximately USD 400 million as of October 2023. The trading performance reflects variations aligned with broader market trends.

Distribution Policy

Summit Midstream Partners, LP has a distribution policy that rewards its unitholders. The following details outline recent distributions:

Summit Midstream Partners, LP (SMLP) Mission Statement

Corporate Vision

Summit Midstream Partners, LP (SMLP) aims to be a leading provider of integrated midstream services to the natural gas, natural gas liquids, and crude oil sectors. The company maintains a focus on operational excellence to maximize the value of its assets for stakeholders.

Core Principles

• Safety: Prioritizing safety in all operations.
• Integrity: Maintaining transparency and ethical practices.
• Customer Commitment: Delivering high-quality services to meet customer demands.
• Environmental Stewardship: Implementing sustainable practices to protect the environment.
• Innovation: Embracing technology to improve operational efficiency.

Recent Financial Performance

As of Q3 2023, Summit Midstream reported the following financial data:

Strategic Objectives

Summit Midstream Partners has outlined several key strategic objectives:

• Expansion of existing infrastructure and facilities.
• Focus on acquiring high-quality assets in strategic regions.
• Enhancing operational efficiencies through technology adoption.
• Strengthening financial performance with a disciplined capital allocation strategy.
• Maintaining a strong balance sheet to support growth initiatives.

Corporate Governance

Summit Midstream Partners upholds corporate governance principles that ensure accountability and responsibility in management practices. The board of directors comprises experienced professionals from diverse backgrounds in energy and finance.

Commitment to Sustainability

In line with its mission, Summit Midstream Partners is dedicated to sustainable practices:

• Reducing greenhouse gas emissions by 20% by 2025.
• Implementing water management strategies to minimize usage.
• Investing in renewable energy projects to diversify energy sources.

Market Position

As of 2023, Summit Midstream operates in several key natural gas and oil-producing regions. Its competitive position is strengthened by its extensive network of pipelines and facilities.

Future Outlook

Looking forward, Summit Midstream anticipates growth driven by increased production in key regions, expanding its service offerings, and enhancing pipeline infrastructure. The company remains committed to its stakeholders with a focus on sustainable growth.

How Summit Midstream Partners, LP (SMLP) Works

Business Model Overview

Summit Midstream Partners, LP (SMLP) is a midstream energy company that focuses on providing integrated infrastructure solutions to producers and consumers of natural gas, natural gas liquids (NGLs), and crude oil. The company is primarily engaged in the gathering, processing, and transportation of these products.

Key Segments

• Gathering Systems
• Processing Facilities
• Transportation Services

Financial Performance

As of Q2 2023, Summit Midstream reported a total revenue of $61.4 million, reflecting a year-over-year increase of 15%. Their Adjusted EBITDA for the same period was approximately $34.5 million.

Operational Areas

Summit Midstream operates primarily in the following geographical regions:

• Appalachian Basin
• Williston Basin
• Permian Basin

Capital Expenditure

For the fiscal year 2023, Summit Midstream has allocated a capital expenditure budget of approximately $50 million, focusing on maintenance and expansion of existing infrastructure.

Partnerships and Contracts

Summit Midstream has established high-value long-term contracts with various oil and gas producers, ensuring a stable revenue stream. The average contract duration is around 10 years.

Market Presence

The company serves a diverse clientele, including major oil and gas producers such as:

• ExxonMobil
• Chevron
• ConocoPhillips

Environmental Impact

Summit Midstream is committed to sustainability and has invested heavily in minimizing its environmental footprint. In 2022, the company reduced methane emissions by 22% compared to the previous year.

Stock Performance

SMLP's stock price as of October 2023 is approximately $12.25 per share, up from $10.50 per share at the beginning of the year, reflecting the company's strong market performance.

Investor Relations

Summit Midstream maintains transparent communication with its investors and stakeholders, providing regular updates on financial performance and operational developments.

Future Outlook

Analysts project a compound annual growth rate (CAGR) of 7% for SMLP through 2026, driven by increased demand for energy infrastructure and strategic acquisitions.

How Summit Midstream Partners, LP (SMLP) Makes Money

Asset Overview

Summit Midstream Partners, LP operates as a midstream services provider in the United States, primarily focusing on natural gas and crude oil. As of the end of 2022, SMLP owned and operated a network of gathering and processing assets across several key basins.

Revenue Streams

SMLP generates revenue through several primary channels:

• Gathering and processing services
• Transportation services
• Fee-based contracts with producers

Gathering and Processing Services

The company's core operations are centered around the gathering and processing of natural gas and crude oil. In 2022, SMLP reported revenues of approximately $276 million from this segment.

Transportation Services

SMLP also offers transportation services that facilitate the movement of hydrocarbons from production sites to processing plants. In 2022, this service generated $45 million in revenue, contributing to the overall financial performance.

Fee Structure

The majority of SMLP's contracts are fee-based, providing a stable revenue source. In the recent fiscal year, approximately 85% of revenues came from fee-based contracts, minimizing exposure to commodity price volatility.

Key Financial Metrics

As of Q4 2022, key financial metrics for SMLP included:

• Net Income: $25 million
• Adjusted EBITDA: $120 million
• Debt to EBITDA Ratio: 4.0x

Market Environment

The economic landscape, including natural gas prices, plays a significant role in SMLP's profitability. In 2022, the average price of natural gas was approximately $6.50 per MMBtu.

Operating Regions

SMLP's operational footprint spans several key regions, including:

• Williston Basin
• Permian Basin
• Utica Basin

Future Prospects

Looking forward, Summit Midstream plans to focus on enhancing its existing asset base and pursuing strategic acquisitions. In 2023, SMLP has allocated approximately $30 million for capital expenditures aimed at infrastructure improvements.