Summit Midstream Corporation Announces \$35 Million Inaugural Stock Repurchase Program
Key Highlights
- Inaugural Stock Repurchase Program: The Board of Directors at Summit Midstream Corporation (NYSE: SMC) has authorized an inaugural stock repurchase program, permitting the company to buy back up to \$35 million of its outstanding common stock.
- Financial Strength & Balance Sheet Improvements: The authorization follows the company’s successful repayment of all arrears on its Series A Preferred Stock and significant progress in simplifying its balance sheet, enhancing financial flexibility and free cash flow profile.
- Liquidity & Market Support: The stock buyback is designed to support liquidity and the secondary market for SMC shares. Management believes the company’s common stock is undervalued at current levels and intends to be opportunistic with repurchases.
Details of the Repurchase Program
- Repurchase Methods: Shares may be repurchased in the open market, through privately negotiated transactions, block purchases, or via a Rule 10b5-1 trading plan. All repurchases will comply with federal and state securities laws, including Rule 10b-18 under the Securities Exchange Act of 1934, as amended.
- Management Discretion: The timing and amount of repurchases will be determined by management, based on market conditions, trading price of SMC common stock, compliance with debt covenants, and other considerations.
- No Obligation or Expiration: The program does not obligate the company to repurchase any specific number of shares. There is no fixed expiration date, and the program may be suspended or discontinued at any time.
Implications for Shareholders
- Potential Share Price Impact: Stock repurchase programs often signal management’s confidence in the company’s financial position and future prospects, which can positively influence share price. The opportunistic approach to repurchases may also provide ongoing price support.
- Financial Flexibility: The company’s ability to initiate a buyback program follows improved financial metrics, including the repayment of preferred stock arrears and a stronger free cash flow profile. These factors may make SMC more attractive to investors.
- No Fixed Commitment: The absence of a fixed expiration date or minimum commitment gives the company flexibility but also means shareholders should monitor management’s execution and updates regarding the program.
About Summit Midstream Corporation
Summit Midstream Corporation is focused on developing, owning, and operating midstream energy infrastructure assets in the core producing areas of unconventional resource basins, primarily shale formations in the continental U.S. SMC provides natural gas, crude oil, and produced water gathering, processing, and transportation services under long-term, fee-based agreements. Its operations span five major unconventional resource basins: Williston (Bakken and Three Forks), Denver-Julesburg (Niobrara and Codell), Fort Worth (Barnett), Arkoma (Woodford and Caney), and Piceance (Mesaverde, Mancos, and Niobrara). SMC also holds an equity investment in Double E Pipeline, LLC, which offers interstate natural gas transportation from the Delaware Basin to the Waha Hub in Texas. Headquartered in Houston, Texas, SMC is positioned as a value-driven midstream energy company.
Forward-Looking Statements and Risk Factors
This announcement contains forward-looking statements regarding future financial performance, repurchases of the company’s common stock, dividend payments, business strategies, and possible actions by SMC or its subsidiaries. These statements are subject to risks and uncertainties, many of which are difficult to predict and beyond management’s control. For a comprehensive list of risks, refer to SMC’s latest Annual Report on Form 10-K filed with the SEC. SMC disclaims any obligation to update or revise forward-looking statements to reflect new information or events.
Investor Contact
For further information, investors can contact Summit Midstream Corporation at 832-413-4770 or via email at [email protected].
Disclaimer: This article is provided for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with financial advisors before making any investment decisions. The article is based on publicly available information as of the date of publication and may not reflect subsequent developments.
