Summit Midstream Partners (SMLP) 9 Aug 242024 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to the 2024 Second Summit Midstream Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Randall Burton, Director of Finance and Investor Relations. Please go ahead.

morning, good and operator, everyone. Thanks,

Events already If earnings find copy or homepage, our a please you it Results visit the you'll don't release, where our of www.summitmidstream.com, section have website section. Presentations & on Quarterly at

discuss our other management me Deneke, Chief of XXXX is Chief Financial Mault, members our Executive senior Officer Officer, second financial With our quarter with operating of and our team. to results Bill along today President, Heath and Chairman;

to like contain capital I'd future objectives and Before strategy you statements that include, statements may start, operations. we expenses future not expenditures. for of today discussion remind also business include and our concerning forward-looking may other and our may volumes, operating estimates These anticipated plans statements. They liquidity, limited cash but are to, flow,

XXXX these to reasonable, X-K are such X, Although SEC XXXX, declared expected on a XX-K cause partnership's to could the reflected XX, we we expectations filed correct. current assurance the annual report Exhibit believe XX.X on be factors will XXXX Please no as can actual on that of forward-looking well S-X that in SMLP's on report that listing with materially effective June registration June to results as differ for Form Form such results. statements prove SMC's and on expectations provide Form statement as see from

comparable EBITDA, our using reconciliations release. cash terms provided measures, we're Please most we flow. financial call, in non-GAAP most adjusted distributable the also are and cash to measures earnings note on that and directly These the EBITDA, recent flow free this GAAP have

call the Heath. with I'll And to that, over turn

Corporation, today our SMC. and joining Midstream the Randall, quarter results first Summit call to Thanks for XXXX Thanks, good everyone. our and Great. or discuss as second morning, call

Summit's an conversion to voted believe will your thanking C corp. meeting approve our deliver the MLP corporate structure will significant benefits greatly and our We simplifying much equity unitholders, start the for we enhance unitholders where burden, on to investors expand today all It this liquidity the to our potential support make easier to shareholders, wanted in execute to trading plans. continue to and by our from a by our now reducing unitholders' universe of of participation transaction special as I tax own.

X, and ticker As has the the corp, have commenced York of to on New C August the XXXX, converted common SMC. a stock we Exchange trading Stock officially under symbol

XXXX equity the second shareholders. XXXX, July financial of the a notes our due sustainable the XXXX base this, E we XXXX. improved to we in as our this maturities Additionally, to preferred execute refinancing, also on and an We target distribution continue created flexibility. Pipeline upsized to accomplish runway million we'll to due we long-term further million $XXX our lien on balance at solid common sheet to on look as refinancing and Through senior continue in and for to Summit's to out have of $XXX Double significantly achieve new commercialize And closed facility potentially business as X.Xx. delever well secured reinstating X, extended policy then a leverage of ABL the

shareholders the years. and in further the outstanding pleased towards the this We're progress base all rebuild returns long-term well growth the M&A opportunities business, company addition our the accretive kind on continue credit platform focus to several continued year E for our for taken coming of our into future. actions executing believe to further the In Double to executing position extremely we've drive made to scale and evaluate and and on the positions with continue value strategy to we of our

operations. to turning Now

results across see We operating to financial and of systems. continue encouraging all our

despite some curtailments get solid were that more Bill his second operational results into section. Our will downtime during and quarter

We Barnett behind highly wells in quarter highlight systems, connected XX is to running have X we segment. wells volume our leading during the rigs anchor see wells and connect the to in challenged growth the customer. currently which anchor the because gas system, productive system one to throughout I including to continue cycle, the EBITDA the the customer Barnett and with our second price quarter both connected natural XX in that from our

enter natural excited late 'XX this price behind the volume level system environment what and gas And forecast likely 'XX, a about be extremely we activity even and we we're supportive We're system. the activity of more there behind than will as in more today. believe seeing

to starts power position Barnett with cost LNG demand great to that the supply. is demand Gulf to fill help in we gas natural the a low incremental demand, and As with increase think close

second robust half of as We're segment of which Rockies year levels year. also continue seeing activity strong well, very the the second a also in the half in positioning Summit have the to is

about progress advance generates via pipeline midpoint look we of forward further multiple as discussions prospect the year expanding potentially more and Double current remaining E to term the the from efforts. providing on capacity up updates the of contracts. the to near long-term aggregate, the the very in in could continue the with filling level our We're project, Lastly, than EBITDA compression more the Permian, excited to business. in the under which, firm commercialization make shippers double Double we throughout on subscribe Pipeline Summit We E

previously super EBITDA to where our million the the had shareholder and very year. the the we've million a achieve adjusted pro we recap, broader well, business remain continuing for to $XXX excited business we guidance returns ability strategy. just we on productive corporate our to to perform with And And about forma today. from grow to executing stated year, So to continue of expect stand $XXX range

I'd to our provide over financial Bill detail that, hand additional with the So to results. call like to on segment

$XX.X loss million of million, $XX.X million, spend in the EBITDA CapEx pad quarter good of Rockies the with connections. the $XX.X second majority of of net Heath, capital and morning, reported associated with Thanks, expenditures everyone. adjusted Summit and

$XXX respect million available approximately we of balance end for includes quarter the capacity with With of of undrawn notes. second million, the SMLP's ABL borrowing of at our debt million, at an approximately quarter credit net LCs and end, the million $X facility reserve $XXX commitment totaled which $XX our $XXX to sheet, approximately had unsecured XXXX and million

capital mentioned, Heath facility million ABL an subsequent $XXX our second As and which from in all both end, senior lien credit the which included a the and tender remaining on unsecured XXXX lien secured a new of notes used for outstanding quarter to issue of million mature note, July, executed and we were to notes. in refinancing new upsize, structure, ABL second with cash note XXXX Net the proceeds XXXX. facility, hand, $XXX the along

is to of In generated segments. which $XX.X increase we and turning volume in million, the systems, We adjusted volume which gas in flat Now margin. product offset increase first Rockies, lower is the natural was liquids throughput, inclusive the Basin X.X% X.X% quarter. experienced a EBITDA Williston from our of and relatively throughput by DJ a which

had downtime during impacted in on at the operational a amount volume to a quarter to margin and Summit experience by offload This our plant system. our station some processing in increase to neighboring resulted $X.X product We million. the downtime an compressor of continue approximately

resolved resolved quarter and by be the to downtime the this expect third fourth quarter. in fully partially We

million declines. volumes to an day, increase production wells the the and barrels impacts the averaged offset cubic running slight quarter natural day, X to Williston wells side, experienced connected partially and by first new in XX volumes Rockies XXX crude cubic XX,XXX DUCs. the due On a the segment We a X DJ rigs of approximately day first increase liquids X system in currently feet a in the in due to averaged the XX the first year, we first Natural the has million the relative and to the quarter, feet connected quarter. a primarily systems relative of during behind to wells quarter, primarily the the half gas weather

$X.X throughput feet the throughput E cubic $X.X an increase first XX.X% adjusted segment, XX% in Double the million, million per due The Volume million E which representing Double primarily volume on of averaged quarter quarter. increase on day, relative relative the Permian our Basin higher the a reported EBITDA includes to first Pipeline, XXX of pipe. to interest to

million The back natural throughput several cubic the of the pads quarter. contractual We the known lower gas being averaged Piceance segment to production, reported day the production customer a brought in $X.X quarter, suspect million, XXXX approximately feet quarter. low relative million of the first with during declines, months. primarily Rockies per extremely prices during $XXX,XXX sales adjusted condensate due the impacted to the quarter during online that new of Volume EBITDA XXX during choked decrease realized of summer million $XX.X $X step-downs approximately of and

to line The initial throughput and feet due planned Barnett EBITDA turned the relative a maintenance-related offset end, with connecting million, of wells $X.X XX.X% customer segment a first pad production is our of completing certain costs. during increase million XX in partially that cubic adjusted with X-well timing The increase customer, reported $XXX,XXX in quarter, volume by quarter volume million $X.X approximately increase to operating due primarily XX of new quarter. anchor throughput, in primarily to increase associated expenses a the an a of after day. And

million had the XX shut production partially on of to of flowing gas day has Additionally, XX million shut-in another in customer in, system, -- approximately who June. resumed

a is While that XX shut-in XX approximately production million system believe there's to there event, still behind certainly of positive we currently. million

you over QX of the average throughput cubic today. how the XX over one higher system averaging give than reporting XX% of currently on running X XXX has DUCs days last have And system. is and events report idea we're rig over impactful an million volume a been that or feet behind There the to some the average day been, these

that, back closing I'll with the to call remarks. turn And Heath over for

Yes. Thanks, Bill. right. All

look the very earlier, So that the certainly on progress throughout our quarter forward corporate throughout the build continuing to and made we on as to that progress further said providing momentum executing We pleased second on the updates we to performance year. strategy. the with are look and forward year I

you And like for your to thank time with the Operator, and call for that, I'd support. please questions. open continued

questions participation This your you today's for no does at showing Thank I'm time. Instructions] this program. in [Operator conclude the conference.

disconnect. now may You