Summit Midstream's Q2 2025: Key Contradictions on EBITDA Guidance, Williston Contracts, and Future Expectations

Adjusted EBITDA guidance, Williston contract life and long-term value, weighted average contract life in Williston Basin, 2025 adjusted EBITDA guidance and recovery expectations are the key contradictions discussed in Summit Midstream Corporation's latest 2025Q2 earnings call.



Adjust EBITDA Performance:
- Summit Midstream reported second quarter adjusted EBITDA of $61 million, which was slightly below expectations.
- The underperformance was primarily due to initial underperformance of wells in the DJ Basin, delays in well completions, and lower realized commodity prices.

Well Connections and Development Activity:
- The company reported roughly 47 new well connections in the first half of the year and has 3 active drilling rigs behind their systems.
- This strong development activity is driven by customer development behind their footprint, despite some customers deferring development due to earlier crude price drops.

Reshuffling of Asset and Infrastructure:
- Summit Midstream identified and initiated a project to relocate owned compression units from the Piceance and DJ Basins to the Arkoma Basin, expecting an increase in EBITDA margin by the first quarter of 2026.
- This strategic move replaces leased units, enhancing operational efficiency and profitability.

10-Year Extension of Gathering Agreements:
- The company executed a 10-year extension of certain gathering agreements with a key customer in the Williston, increasing their weighted average contract life from 4 to 8 years.
- This extension demonstrates the durability of their business and the long-term value of their assets and is a result of offering rate relief to improve customer drilling economics.

Inclusion in Russell Indices:
- Summit Midstream was added to the Russell 3000, Russell 2000, and Russell Microcap indices during the June reconstitution.
- This milestone enhances the company's visibility among institutional investors, increases passive investment, and broadens its shareholder base.