XOM - Summit Midstream: Seeing The Forest For The Trees

• Summit Midstream delivered another solid quarter in Q3 FY 2021 and its conference call was filled with favorable leading indicators as producers in its systems signaled increasing drilling activity.
• Summit's Double E Pipeline (off-balance sheet) comes online in December 2021, and this should generate $45 million in proportional Adj. EBITDA as the system ramps up.
• With Summit's big $1 billion debt wall successfully refinanced, Summit's strong free cash flow (at least $131 million in FY 2022 using conservative assumptions) will be earmarked to deleverage.
• Given the prospect for growing FY 2022 Adj. EBITDA, a modest uplift compared to FY 2021 could really move the lowest piece of the capital structure, Summit's common units.

For further details see: