Summit Midstream Corporation — Second Quarter 2026 Earnings Summary

Financial Performance

• Net income for the three months ended June 30, 2026, was $4.6 million, compared to a net loss of $4.2 million in the same period in 2025.
• Adjusted EBITDA for the quarter was $60.7 million, a 12% increase relative to the first quarter of 2026 and a slight decrease from $61.1 million in the second quarter of 2025.
• Distributable Cash Flow (DCF) was $36.8 million for the quarter, compared to $32.4 million in Q2 2025.
• Free Cash Flow (FCF) was $9.4 million for the quarter, compared to $9.2 million in Q2 2025.
• Total revenues for the quarter were $155.0 million, up from $140.2 million in Q2 2025.
• Net cash provided by operating activities was $43.9 million for the quarter, compared to $37.2 million in Q2 2025.
• Capital expenditures totaled $25.0 million in the quarter, including $4.1 million in maintenance capital.
• Cash flow available for distributions for the six months ended June 30, 2026, was $63.7 million, down from $65.9 million in the same period in 2025.
• Free Cash Flow for the six months ended June 30, 2026, was $20.8 million, compared to $20.6 million in the same period in 2025.
• As of June 30, 2026, total leverage was approximately 4.1x.
• Interest coverage ratio was 2.7x, exceeding the minimum covenant of 2.0x.
• First lien leverage ratio was 0.3x, well below the maximum covenant of 2.5x.

Guidance and Future Outlook

• Tightened full-year 2026 Adjusted EBITDA guidance range to $235 million to $255 million.
• Increased full-year 2026 total capital expenditure guidance to $100 million to $120 million, up from the previous range of $85 million to $105 million.
• The increased capex guidance reflects additional high-returning growth projects in the Rockies and Permian segments, including 30 additional Williston wells added to the program or accelerated from 2027, and incremental capital at Double E tied to new firm transportation agreements.
• Management expects minimal impact on 2026 results from approximately 30 incremental well connections identified in the Williston Basin, which are expected to connect primarily in the fourth quarter.
• Management anticipates a strong start to 2027 due to the identified incremental well connections.
• The open season for the Double E – Mainline Compression Expansion has been extended through the end of August, with a final investment decision expected prior to its conclusion.

Business Segments and Product Lines

• Mid-Con Segment: Natural gas volume throughput increased 9.9% to 523 MMcf/d relative to Q1 2026, driving a 10% increase in Segment Adjusted EBITDA. Segment Adjusted EBITDA totaled $21.4 million, an increase of $2.0 million from Q1 2026, driven by 17 new Barnett well connections and three new Arkoma well connections.
• Rockies Segment: Adjusted EBITDA totaled $30.4 million, an increase of $4.0 million from Q1 2026. Liquids volume throughput increased 6.3%, while natural gas volume throughput declined 3.0%. The segment benefited from higher realized crude oil and NGL prices.
• Permian Segment: Adjusted EBITDA totaled $9.4 million, an increase of $0.6 million from Q1 2026, driven by a 6.7% increase in Double E volume throughput to 859 MMcf/d.
• Piceance Segment: Adjusted EBITDA totaled $8.7 million, a decrease of $0.9 million from Q1 2026, primarily due to a 5.7% decline in volume throughput caused by temporary shut-ins, natural production declines, and no new well connections. All previous shut-in production resumed flowing by the end of July.
• Double E Pipeline: Averaged 859 MMcf/d in Q2 2026 and contributed $9.4 million in Adjusted EBITDA, net to SMC.
• Aggregate Throughput: Average daily natural gas throughput increased 3.3% to 899 MMcf/d, while liquids volumes increased 6.3% to 68 Mbbl/d relative to Q1 2026.
• New Agreements: Established new firm transportation agreements on Double E and a new crude gathering agreement in Divide County, North Dakota.
• Drilling Activity: Eight rigs are currently operating behind the Rockies systems (six in the Williston Basin, two in the DJ Basin), with approximately 75 DUCs across the footprint. 36 new well connections were made in the quarter.

Market and Competitive Landscape

• Customer activity ramped up meaningfully across the footprint, with 36 new well connections in the second quarter.
• Significant customer interest exists in the Double E – Mainline Compression Expansion open season.
• Activity in the Williston Basin has accelerated, with six rigs running behind the system, representing the most active drilling program seen in the basin in several years.
• Management noted added confidence in the Mid-Con segment's trajectory due to strong well performance in the Barnett and Arkoma basins.

Risks and Challenges

• Piceance segment volume throughput was negatively impacted by continued temporary shut-ins and natural production declines.
• Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from projected results, including factors detailed in the company's 2025 Annual Report on Form 10-K.
• GAAP financial measures such as net income and net cash provided by operating activities are not provided on a forward-looking basis due to the inherent uncertainty of income/loss from equity method investees and asset impairments.

Management Commentary and Tone

• Heath Deneke, President, CEO, and Chairman, expressed confidence in the segment's trajectory and the long-term growth outlook following new commercial agreements.
• Management highlighted "another encouraging development" regarding the acceleration of activity in the Williston Basin.
• The tone was positive, citing better visibility into the second-half volume profile and a solid first half of the year.
• Management noted that the tightening of guidance and increase in capex reflect "additional high-returning growth projects."

Other Key Points

• Established a $35 million stock repurchase program; approximately $34.0 million of remaining capacity existed as of June 30, 2026.
• During the quarter, SMC repurchased 34,624 shares of common stock for approximately $1.0 million.
• The Board of Directors continued to suspend cash dividends payable on common stock for the period ended June 30, 2026.
• The quarterly cash dividend on Series A Preferred Stock for the period ending September 14, 2026, will be paid to shareholders of record as of September 1, 2026.
• SMC billed customers $4.2 million in the second quarter related to Minimum Volume Commitment (MVC) shortfalls, which contributed $4.2 million to Adjusted EBITDA.
• MVC shortfall payment mechanisms underpinning Piceance segment gathering agreements expire at the end of the third quarter of 2026.
• As of June 30, 2026, SMC had $21.0 million in unrestricted cash-on-hand and $79 million drawn under its $500 million ABL Revolver, with $418 million of borrowing availability.
• Gross availability based on the borrowing base calculation was $798 million, $298 million greater than the $500 million lender commitments.
• The Summit Permian Transmission Term Loan Facility balance was $350 million and remains non-recourse to SMC.
• Total cash paid for capital expenditures for the six months ended June 30, 2026, was $44.3 million.
• Deferred revenue was $7.996 million as of June 30, 2026, down from $10.122 million as of December 31, 2025.
• Total assets were $2.41 billion as of June 30, 2026, compared to $2.39 billion as of December 31, 2025.