Summit Midstream Tightens 2026 EBITDA Guidance

The Tip Desk · August 11, 2026 · 4 min read

Second-quarter Adjusted EBITDA reached $60.7 million after a first-quarter dip, and the company lifted its capital plan to $100 million to $120 million.

Summit Midstream Corporation (SMC) posted Adjusted EBITDA of $60.7 million for the three months ended June 30, 2026, a 12% sequential increase that reversed a 6.5% drop to $54.2 million in the first quarter.

The Houston-based midstream operator saw customer activity ramp across its footprint, with 36 new well connections in the quarter. Net income was $4.6 million, compared with a $3.2 million net loss in the prior quarter. Distributable cash flow rose to $36.8 million from $26.9 million. Free cash flow was $9.4 million.

Wholly owned natural gas throughput increased 3.3% to 899 MMcf/d, reversing a 2.7% sequential decline to 870 MMcf/d in the first quarter. Liquids throughput increased 6.3% to 68 Mbbl/d.

The Rockies Segment accounted for the majority of the Adjusted EBITDA increase. Segment Adjusted EBITDA rose $4.0 million to $30.4 million, driven by a 6.3% rise in liquids volume throughput and higher realized crude oil and NGL prices, partially offset by a 3.0% decline in natural gas volume throughput. Sixteen wells were connected in the DJ Basin during the quarter.

Mid-Con Adjusted EBITDA totaled $21.4 million, up $2.0 million from the first quarter, after a $2.1 million sequential decline to $19.3 million in that period. The increase was driven by a 9.9% rise in natural gas volume throughput to 523 MMcf/d, from 17 new Barnett well connections and three new Arkoma connections. President, Chief Executive Officer and Chairman Heath Deneke said Mid-Con delivered a nearly 10% volume increase on strong well performance in both the Barnett and Arkoma.

Piceance Adjusted EBITDA decreased $0.9 million to $8.7 million on a 5.7% decline in volume throughput from temporary shut-ins, natural production declines, and no new well connections. As of the end of July, all previous shut-in production had resumed flowing.

Permian Adjusted EBITDA increased $0.6 million to $9.4 million on a 6.7% rise in Double E volume throughput to 859 MMcf/d. Double E contributed $9.4 million in Adjusted EBITDA, net to SMC.

After quarter end, 17 wells were connected in the Williston Basin, including nine for which Summit provides both crude oil and produced water gathering. Eight rigs are running in the Rockies Segment, including two in the DJ Basin and six in the Williston Basin, with approximately 75 DUCs behind the systems. Deneke said the Williston drilling program is the most active the company has seen in the basin in several years and that it has identified about 30 incremental well connections not in its original plan, expected to connect primarily in the fourth quarter with minimal impact on 2026 results.

The company tightened full-year 2026 Adjusted EBITDA guidance to $235 million to $255 million from $225 million to $265 million. It increased total capital expenditures to $100 million to $120 million from $85 million to $105 million, reflecting 30 additional Williston wells added to the program or accelerated from 2027 and incremental capital at Double E tied to new firm transportation agreements. Capital expenditures in the second quarter were $25.0 million, including $4.1 million of maintenance.

Summit established a $35 million stock repurchase program and bought 34,624 shares for about $1.0 million in the quarter, leaving about $34.0 million of remaining capacity. The board continued to suspend the common cash dividend. As of June 30, unrestricted cash was $21.0 million, with $79 million drawn under the $500 million ABL revolver and $418 million of borrowing availability. The Summit Permian Transmission Term Loan Facility had a $350 million balance and remains non-recourse to SMC.

MVC shortfall payments contributed $4.2 million of Adjusted EBITDA in the second quarter. The minimum volume commitments underpinning Piceance gathering agreements, which represent substantially all of those payments, expire at the end of the third quarter of 2026.

Deneke said the company has better visibility into its second-half volume profile and has extended the Double E–Mainline Compression Expansion open season through the end of August, expecting to be in a position to make a final investment decision prior to its conclusion.