Summit Midstream Corp - Double E pipeline expansion expected in-service in Q4 2028

Summit Midstream Corporation (NYSE: SMC) has announced continued progress on its Double E Pipeline expansion project in the Permian Basin, with an expected in-service date by the end of 2028. The company has executed two new long-term firm transportation agreements totaling 150 MMcf/d, bringing total open season commitments to 250 MMcf/d and total contracted capacity to approximately 1.9 Bcf/d. The expansion is expected to increase the pipeline's capacity by approximately 50%, from 1.6 Bcf/d to 2.4 Bcf/d.

The company has extended the binding open season for the Double E Compression Expansion project through June 30, 2026, due to significant interest from prospective shippers. Summit Midstream expects to reach a final investment decision (FID) by the end of summer 2026. In preparation for the project, the company has executed a purchase order to acquire gas turbine compressors to secure the long lead time equipment necessary for the expansion.

The Double E Pipeline, which commenced operations in November 2021, is a 135.2-mile pipeline that transports natural gas from the Delaware Basin to the Waha Hub in Texas. The pipeline is owned by Double E LLC, a joint venture between Summit Midstream (70%) and ExxonMobil (30%). The expansion project is expected to enhance the pipeline's ability to meet growing demand for natural gas transportation in the Permian Basin.

In addition to the Double E Pipeline expansion, Summit Midstream has also executed a new crude oil gathering agreement in Divide County, North Dakota, with a producer covering more than 40,000 acres. The agreement is expected to connect 15 four-mile lateral wells by the end of 2026. This agreement is part of the company's strategy to expand its Williston Basin footprint, where development activity is shifting toward its operating areas in Williams and Divide Counties.

Summit Midstream's management has emphasized the importance of these projects in driving long-term growth and enhancing the company's infrastructure capabilities. The company remains focused on executing its growth initiatives while maintaining financial discipline and strengthening its balance sheet.