SMLP - Summit Midstream Partners: Still Struggling With 2021 Looking No Better Than 2020

• Summit Midstream Partners was fighting for survival during 2020 with weak cash flow performance and too much debt and sadly, it does not appear that 2021 will be any better.
• Their guidance for 2021 sees their adjusted EBITDA decreasing a further 12% versus 2020, which will very likely drag down their cash flow performance.
• Whilst they are aiming to reduce their net debt by approximately 10% during 2021, their decreasing earnings will stop this from helping them deleverage.
• They are also facing a massive over $1b of debt maturities in 2022 that will require refinancing, which will likely be more difficult than normal given their disappointing financial performance.
• Given this murky situation that makes it difficult to ascertain their ability to survive, I continue maintaining my neutral rating.

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