SMLP - Summit Midstream sees well connections staying far below pre-COVID levels
Summit Midstream Partners (SMLP -39.8%) plunges by more than a third after reporting a Q4 net loss of $16.2M and guiding for 75-110 well connections in 2022, far below pre-COVID levels that averaged 262 well connections per year during 2017-19. Among key Q4 metrics: adjusted EBITDA fell 11% Y/Y to $54.7M, natural gas throughput dropped 9% to 1,307 Mmcf/day, cash from operating activities slid 28% to $37.4M, and distributable cash flow plunged 33% to $29.9M. For FY 2022, Summit sees adjusted EBITDA of $195M-$220M, a decline from 2021 primarily due to limited drilling and completion activity. The partnership said it expects to generate cash flow after interest expense, capital spending, investments in Double E and other cash expenditures of $65M-$85M, which will be utilized to further reduce debt. "Given the current commodity price environment and the momentum in activity that we experienced in second half of 2021, we are disappointed
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Summit Midstream sees well connections staying far below pre-COVID levels