Summit Midstream 3Q – Legacy Marcellus Segment Star Performer

Summit Midstream Partners, formed in 2009 and headquartered in The Woodlands, Texas, operates natural gas, crude oil, and produced water gathering (pipeline) systems in several unconventional shale plays, including the Marcellus and Utica. Last Friday Summit issued its third-quarter 2020 update. Interestingly, the gas flowing through the company’s Marcellus and Utica operations increased (a lot), while volumes flowing through the company’s other operations decreased (a lot) in 3Q.
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Summit Midstream 1-for-15 Reverse Stock Split Avoids NYSE Delisting

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Summit Midstream Partners, formed in 2009 and headquartered in The Woodlands, Texas, operates natural gas, crude oil, and produced water gathering (pipeline) systems in six unconventional resource basins, including the Marcellus and Utica. The company concentrates its time and money on four “core focus areas” including the Utica, the Williston (i.e. Bakken), the DJ Basin, and the Permian. Last week the company’s board of directors approved a reserve stock split, trading (consolidating) 1 share for 15, beginning next Tuesday.
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Summit Midstream – Ohio Utica Shines in 2Q

Summit Midstream Partners, formed in 2009 and headquartered in The Woodlands, Texas, operates natural gas, crude oil and produced water gathering (pipeline) systems in six unconventional resource basins, including the Marcellus and Utica. The company concentrates its time and money on four “core focus areas” including the Utica, the Williston (i.e. Bakken), the DJ Basin and the Permian. The Marcellus is part of the company’s “legacy” systems that doesn’t get as much love (and money). Last week the company issued its 2Q update. The company’s Utica operation was the star performer in 2Q, increasing flows through Summit’s system by 60%.
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Summit Midstream Merges with Itself; Bob McNally Joins Board

Summit Midstream Partners, formed in 2009 and headquartered in The Woodlands, Texas, operates natural gas, crude oil and produced water gathering (pipeline) systems in six unconventional resource basins, including the Marcellus and Utica. The company concentrates its time and money on four “core focus areas” including the Utica, the Williston (i.e. Bakken), the DJ Basin, and the Permian. The company announced yesterday it has completed the buyout of a subsidiary and merged it in. Hidden in the bowels of the press release we discovered Bob McNally, former (ousted) CEO of EQT Corporation, has joined the board of directors at Summit.
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Summit Midstream Doing Reverse Stock Split Following NYSE Warning

Summit Midstream Partners, formed in 2009 and headquartered in The Woodlands, Texas, operates natural gas, crude oil and produced water gathering (pipeline) systems in six unconventional resource basins, including the Marcellus and Utica. The company concentrates its time and money on four “core focus areas” including the Utica, the Williston (i.e. Bakken), the DJ Basin and the Permian. The company announced yesterday it has received notice from the New York Stock Exchange (NYSE) that its per-share price has fallen below $1 for at least 30 consecutive trading days.
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Summit Midstream 2019 – Flowed Less Gas, Made Less Cash

Summit Midstream Partners, formed in 2009 and headquartered in The Woodlands, Texas, operates natural gas, crude oil and produced water gathering (pipeline) systems in six unconventional resource basins, including the Marcellus and Utica. The company concentrates its time and money on four “core focus areas” including the Utica, the Williston (i.e. Bakken), the DJ Basin and the Permian. The Marcellus is part of the company’s “legacy” systems that don’t get as much love (and money). Last week the company issued its 4Q and full-year 2019 update. We will summarize it this way: Summit flowed less gas and consequently made less cash in 2019 than it did in 2018.
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Summit Midstream 3Q – Utica Producing Less but Making More $$

Summit Midstream Partners, formed in 2009 and headquartered in The Woodlands, Texas, operates natural gas, crude oil and produced water gathering (pipeline) systems in six unconventional resource basins, including the Marcellus and Utica. The company concentrates its time and money on four “core focus areas” including: the Utica, the Williston (i.e. Bakken), the DJ Basin and the Permian. The Marcellus is part of the company’s “legacy” systems that don’t get as much love (and money). Earlier this year we speculated that maybe the Summit’s Marcellus assets would be posted for sale (see Summit Midstream: M-U Volumes Decrease; Marcellus for Sale?). So far that hasn’t happened. Summit recently issued its third quarter 2019 update.
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Summit Midstream: M-U Volumes Decrease; Marcellus for Sale?

Is Summit Midstream teeing up their Marcellus pipeline gathering system for a sale? Late last week Summit Midstream, which has a meaningful presence in the Marcellus/Utica region, released its first quarter 2019 numbers and held a conference call to discuss the company’s performance. As was the case for fourth quarter and full year 2018 (see Summit Midstream Fires CEO; M-U Volumes, Profits Down in 2018), Summit’s volumes and profits continued a downward trend in 1Q19. However, interim CEO Leonard Mallett says things are about to turn around.
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Summit Midstream Fires CEO; M-U Volumes, Profits Down in 2018

Summit Midstream has a meaningful presence in the Marcellus/Utica region. The company not only released their 4Q and full year 2018 update yesterday, they also released the bombshell announcement they have fired (our word, not theirs) CEO Steve Newby. Summit COO Leonard Mallett has become interim President and Chief Executive Officer while the company conducts a search.
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1Q18 Midstream Potpourri: Williams, MarkWest, Summit, Tallgrass

Every three months publicly traded companies, including those with major operations in the Marcellus/Utica, issue a required quarterly update for stockholders. It’s often referred to as “earnings season.” We like to cull through the updates to share items of interest with MDN readers. For drilling companies we dedicate an entire post to each company. We typically don’t cover midstream (i.e. pipeline) companies as much. However, there are a number of important projects cooking with companies like Williams, MarkWest Energy (MPLX), Summit Midstream and Tallgrass (REX Pipeline). We culled through the press releases and analyst phone call transcripts to pick out comments and portions that we think are helpful in understanding where some of these important projects are, and how they impact the bottom line of said companies. Below is our 1Q18 midstream potpourri…
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Belmont OH Family Sues Summit Midstream for Mud Spill Near Home

Summit Midstream Partners was drilling underneath a road and a creek in Belmont County, OH on Oct. 19 to install a pipeline when they experienced an “inadvertent return” (i.e. leak) of drilling mud into the creek. If you’ve read MDN for any length of time, you will have read about other such instances by other companies. Because we constantly have new readers, we post the following explanation, which will sound like a broken record for long-time readers: Drilling mud is bentonite, a form of non-toxic clay also used to make kitty litter, cosmetics and toothpaste–among many, many other consumer products. The only threat posed by a spill of bentonite is that enough of it spills to clog the gills of fish or smother little critters like salamanders. That’s it. Think about taking half a dozen bags of kitty litter to a creek nearby and dumping them all in. It’s nothing. No pollution. We’d certainly rather not have any such accidents–but the reality is, they sometimes happen. That’s why non-toxic bentonite is used. The Ohio EPA stepped in and cited/fined Summit for the spill. Fair enough. But that’s not what this story is about. This story is about a family that lives near the spill. They hated Summit’s “loud” drilling before the spill, and now are using Summit’s spill and cleanup work (some of it happening in their front yard) as an excuse to sue Summit, hoping to score big bucks. Good luck with that…
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Summit Midstream 3Q16: Utica Volume Up, Marcellus Volume Down

Summit_Midstream_Logo[1Summit Midstream has a small but growing presence in the Marcellus/Utica region largely through purchasing pipeline systems from other companies, including Mountaineer Midstream, Summit’s Marcellus-area pipeline system in Doddridge County, WV, and an interest in Ohio Gathering, a natgas gathering system in service and under development spanning the condensate, liquids-rich and dry gas windows of the Utica Shale in Harrison, Guernsey, Noble, Belmont and Monroe counties in southeastern OH. In 3Q16 Summit lost $215,000 vs. making $21.2 million in the same period a year earlier. The volume of gas pumping through Summit’s pipelines went up in the Utica, a lot–from 42 million cubic feet per day (MMcf/d) in 3Q15 to 234 MMcf/d in 3Q16 (up 4.5x). However, Marcellus gas volumes decreased year over year from 457 in 3Q15 to 418 in 3Q16, no doubt due to less new drilling in the Marcellus. Here’s a portion of the Summit update…
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Summit Midstream Loses $50.6M in 2Q16, Utica Volume Jumps

Summit_Midstream_Logo[1Summit Midstream has a small but growing presence in the Marcellus/Utica region largely through purchasing pipeline systems from other companies, including Mountaineer Midstream, Summit’s Marcellus-area pipeline system in Doddridge County, WV. The company released its second quarter 2016 update yesterday, and unfortunately the numbers don’t look so hot. Whereas CONE Midstream, a much smaller, totally focused on the Marcellus/Utica pipeline company stayed about even with net income in 2Q16 (see Cone Midstream Continues to Impress – 2Q16 Update), Summit did not. In 2Q15 Summit lost $2.4 million. In 2Q16 they lost $50.6 million–or 21 times what they lost a year ago. However, $38 million of that loss was an impairment charge (meaning its a paper loss, not actual money out the door loss). Since Summit operates in a number of plays, including the Marcellus and Utica, we’ve selected out portions of the update below that mostly deal with the northeast…
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Instead of Selling, ECP Increases Ownership of Summit Midstream

In November MDN told you that the majority owner of Summit Midstream, private equity firm Energy Capital Partners (ECP) was looking to sell some or all of their units (i.e. shares) in the company (see Summit Midstream 3Q15: Current Owner ECP Looking to Sell). At the time ECP owned 43.8% of the company. Looks like that plan didn’t work out so well–at least so far. In a recent Securities and Exchange Commission filing, Summit reveals that ECP now owns 47.1% of the company…
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Big Stock Trades for Rice Energy, Summit Midstream

Periodically we catch you up on major cases of insider buying or selling–when upper management and/or board members either buy stock in the company they run, or sell it. We also periodically report on major shareholders either buying or selling. Earlier this week we told you that Eagle Asset Management had sold some of its Gulfport Energy stock and beefed up its Rice Energy portfolio (see Eagle Asset Mgmt Sells Gulfport Energy, Buys Rice Energy Stock). Today we report that Jennison Associates (investment firm) recently sold 369,662 shares of Rice Energy. After all, somebody like Jennison has to sell if companies like Eagle Asset buy, right? In addition, we’re reporting that a board member of Summit Midstream (company with sizable pipeline assets in the Marcellus/Utica) recently bought a whopping $5.6 million worth of company stock. Now there’s a vote a confidence!…
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Summit Midstream 3Q15: Current Owner ECP Looking to Sell

Summit Midstream has a small but growing presence in the Marcellus/Utica region largely through purchasing pipeline systems from other companies, including Mountaineer Midstream, Summit’s Marcellus-area pipeline system in Doddridge County, WV. Yesterday the company issued its third quarter 2015 financial results. Of particular note: Summit is majority owned by Energy Capital Partners (ECP), a private equity firm (investment company). ECP is talking about selling their interest. That is, it’s sounding like Summit may soon see a change in ownership. Below is the update on that possible change, along with an update on Summit’s Mountaineer Midstream gathering system…
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