Summit Midstream's Resurgent Dividends: A Sign of Strength and Stability

In the dynamic world of energy and finance, companies often face challenges that test their resilience and adaptability. Summit Midstream Corporation (NYSE: SMC), a value-driven corporation focused on midstream energy infrastructure assets, has weathered its fair share of storms. However, the company's recent announcement of resuming preferred dividend payments in the first quarter of 2025 is a clear sign that it has not only weathered the storm but has emerged stronger and more stable.



The decision to resume preferred dividends is a testament to Summit Midstream's improved financial health and stability. In 2023, the company's revenue increased by a significant 24.10% to $459.84 million, demonstrating a robust performance in its core operations. Additionally, Summit Midstream's losses decreased by 50.58% to -$63.09 million, indicating that the company has been effectively managing its expenses and improving its bottom line.

The resumption of preferred dividends is a clear indication that Summit Midstream has turned a corner and is now in a position to distribute cash to shareholders. The board declared a quarterly cash dividend of $51.27 per share on its Series A fixed-to-floating rate cumulative redeemable perpetual preferred stock, to be paid on March 15, 2025, to shareholders of record as of March 3, 2025. This payment will be distributed across 65,508 outstanding shares of Series A Preferred Stock.

The decision to resume preferred dividends is not only a positive development for Summit Midstream's shareholders but also a vote of confidence in the company's future prospects. The company's recent strategic initiatives, such as the acquisition of Tall Oak Midstream III in the Arkoma Basin, are expected to boost EBITDA and cash flow, enhancing shareholder returns. This, combined with the company's improved financial performance, has contributed to the resumption of preferred dividends.

In conclusion, Summit Midstream Corporation's decision to resume preferred dividend payments in the first quarter of 2025 is a clear sign of the company's improved financial health and stability. The company's recent financial performance, strategic initiatives, and the resumption of dividends are all positive developments that are likely to have a positive impact on SMC's stock price and investor sentiment. As the company continues to navigate the dynamic energy landscape, investors can be confident that Summit Midstream is well-positioned to deliver value and stability to its shareholders.