Summit Raises 2026 Adjusted EBITDA Outlook After Rockies Ramp

The Tip Desk · November 12, 2026 · 4 min read

Adjusted EBITDA was $70.7 million in the third quarter, up 16% from the second quarter, as the company lifted its 2026 range to $250 million to $260 million.

Summit Midstream Corporation (SMC) reported third-quarter 2026 Adjusted EBITDA of $70.7 million, a 16% sequential increase that accelerated from a 12% rise in the second quarter, and raised its full-year 2026 Adjusted EBITDA guidance to $250 million to $260 million from $235 million to $255 million.

Net income was $15.9 million, or $0.58 a share on a diluted basis, compared with $4.6 million in the second quarter. Cash flow available for distributions was $32.6 million and free cash flow was $5.2 million.

The company said the quarter was among its strongest, citing an active customer base and a supportive commodity price environment. Fifty-one new wells came online across the Williston and DJ Basins, the company said, driving a 39.7% increase in liquids volumes and a 32% increase in Rockies Segment Adjusted EBITDA. Since the first quarter, new well connects, volume growth and favorable commodity prices have added roughly $16.5 million of quarterly Adjusted EBITDA, the company said, approximately 30% growth in two quarters.

Rockies Segment Adjusted EBITDA totaled $40.0 million, up $9.6 million from the second quarter, after 32 wells connected in the Williston Basin and 19 in the DJ Basin, including nine Williston wells for which Summit provides both crude oil and produced water gathering. Third-quarter results also included about $3.7 million of commercial billing settlements. Six rigs were running in the Rockies, including four in the Williston and two in the DJ, with approximately 140 DUCs behind the systems. Aggregate liquids throughput on wholly owned systems rose 39.7% to 95 Mbbl/d.

Mid-Con Segment Adjusted EBITDA increased 7% to $22.8 million on a 7.3% rise in natural gas volume throughput to 561 MMcf/d, reflecting a full quarter of contribution from wells connected in the second quarter across the Barnett and Arkoma systems. One rig was running in the Barnett. Natural gas price-driven segments generated $31.1 million in combined Segment Adjusted EBITDA.

Permian Segment Adjusted EBITDA totaled $11.2 million, up about $1.8 million, on new contracts placed into service and a 16.6% increase in Double E volume throughput to a record 1,002 MMcf/d. Double E contributed $11.2 million in Adjusted EBITDA, net to SMC. The company reached a final investment decision on the Double E Mainline Compression Expansion and said the pipeline remains on track to fully subscribe the remaining forward-haul capacity by year-end.

Piceance Segment Adjusted EBITDA fell $0.4 million to $8.3 million as higher operating expenses offset a 4.2% volume increase to 223 MMcf/d. No new wells were connected. Aggregate average daily natural gas throughput on wholly owned systems increased 5.9% to 952 MMcf/d.

Capital expenditures totaled $21.2 million in the third quarter, including $4.7 million of maintenance capital, primarily for pad connections in the Rockies and Mid-Con. Full-year 2026 capital expenditures, including Double E, remain $100 million to $120 million, now expected near the high end of that range, up from original guidance of $85 million to $105 million. The company said the increase reflects incremental high-return growth projects, including 30 additional Williston wells added or accelerated from 2027 and incremental Double E capital tied to new firm transportation agreements.

MVC shortfall payments contributed $4.1 million of Adjusted EBITDA. The minimum volume commitments underpinning Piceance gathering agreements, which represented substantially all of those payments, expired at the end of the third quarter.

As of September 30, 2026, Summit had $12.5 million of unrestricted cash and $80 million drawn under its $500 million ABL revolver, with $417 million of borrowing availability after letters of credit. Total net leverage was approximately 3.9x; the company expects a year-end 2026 total net leverage ratio of approximately 3.6x. The Summit Permian Transmission Term Loan had a $360 million balance and remains non-recourse to SMC. Common cash dividends remained suspended. The company repurchased 7,007 shares for about $0.2 million, leaving $33.8 million of capacity under its $35.0 million program.

The company said it currently expects to connect 200 to 250 wells in 2027 and that Rockies producers are signaling plans to continue to grow activity well into 2028 and beyond. It said the combination of Rockies and Permian growth, along with a steady Mid-Con outlook, could drive a mid-to-high-teens compound annual growth rate in Adjusted EBITDA over the next several years, and that it looks forward to providing more specific financial guidance for 2027 early next year.