Summit Midstream Q2 2026 earnings: Revenue growth leaves adjusted EBITDA nearly flat

Summit Midstream (NYSE: SMC) reported Q2 2026 revenue of $155.0 million, up 10.6% from $140.2 million a year earlier, while diluted EPS improved to $0.11 from a $0.66 loss. Net income turned positive and operating cash flow increased, but adjusted EBITDA remained nearly flat year over year as Rockies and Permian gains were offset by declines in Piceance and Mid-Con.

Core financial results

Revenue growth came primarily from natural gas, NGL and condensate sales, which increased to $84.1 million from $66.3 million. However, the associated cost of natural gas and NGLs rose to $49.1 million from $35.9 million, limiting the benefit to adjusted EBITDA.

Net income improved by $8.8 million year over year. The income statement also benefited from lower depreciation and amortization, lower general and administrative expense, and substantially lower transaction and integration costs, although interest expense increased to $27.4 million.

Adjusted EBITDA, distributable cash flow and free cash flow are non-GAAP measures. Summit’s free cash flow calculation deducts growth capital spending and investments in equity-method investees from distributable cash flow.

Business and segment performance

Rockies and Permian generated higher segment adjusted EBITDA than a year earlier, while Piceance and Mid-Con declined. Total reportable segment adjusted EBITDA increased 1.2% to $69.7 million, but the Corporate and Other deduction rose to $9.0 million from $7.8 million, leaving companywide adjusted EBITDA slightly lower.

Sequentially, Rockies segment adjusted EBITDA increased $4.0 million. Management attributed the improvement to a 6.3% increase in liquids throughput and higher realized crude oil and NGL prices, partly offset by a 3.0% decline in natural gas throughput.

Mid-Con adjusted EBITDA increased $2.0 million from Q1 2026 as natural gas throughput rose 9.9% to 523 MMcf/d. The company connected 17 Barnett wells and three Arkoma wells during the quarter. Despite that sequential recovery, Mid-Con EBITDA remained below the prior-year quarter.

Piceance EBITDA declined both sequentially and year over year. Management cited temporary shut-ins, natural production declines and no new well connections. The company said all previously shut-in production had resumed flowing by the end of July, although the underlying natural-decline issue remains relevant.

Double E gross throughput reached 859 MMcf/d, up 26.0% from 682 MMcf/d a year earlier and 6.7% from Q1 2026. The pipeline contributed $9.4 million of adjusted EBITDA net to Summit during the quarter.

Across Summit’s wholly owned systems, aggregate natural gas throughput was 899 MMcf/d, down 1.4% year over year but up 3.3% sequentially. Liquids throughput was 68 Mbbl/d, down 12.8% year over year but up 6.3% from Q1.

Higher commodity sales lifted revenue, but costs capped EBITDA

The quarter’s central financial divergence was the combination of double-digit revenue growth and nearly unchanged adjusted EBITDA. Natural gas, NGL and condensate sales increased 26.8%, but the corresponding commodity cost rose 36.7%. Gathering services and related fees also declined 2.3% to $62.7 million.

Below adjusted EBITDA, several expense changes helped Summit return to GAAP profitability. Depreciation and amortization declined by $3.2 million, general and administrative expense fell by $1.8 million, and combined transaction and acquisition-integration costs dropped by approximately $4.6 million. These benefits outweighed a $3.5 million increase in interest expense and explain why net income improved even though adjusted EBITDA did not.

Cash flow, capital spending and liquidity

Operating cash flow rose to $43.9 million, while distributable cash flow increased to $36.8 million. Free cash flow was positive at $9.4 million after $20.9 million of growth capital expenditures and a $6.5 million investment in an equity-method investee.

Summit ended June with $21.0 million of unrestricted cash and $418 million of available borrowing capacity under its $500 million ABL revolver. The company had drawn $79 million on that facility. Its total leverage ratio was approximately 4.1 times, while interest coverage was 2.7 times compared with a minimum covenant of 2.0 times.

The company spent approximately $1.0 million to repurchase 34,624 common shares during the quarter, leaving $34.0 million under its $35 million authorization. The board continued to suspend common-stock cash dividends, while maintaining the scheduled Series A preferred dividend.

2026 guidance

Summit tightened its full-year adjusted EBITDA range and raised capital spending guidance. The higher capital budget reflects 30 additional Williston wells that were added to the program or accelerated from 2027, along with incremental Double E spending tied to new firm transportation agreements.

Management expects the additional Williston connections to occur primarily in the fourth quarter, with minimal impact on 2026 results but potential benefits entering 2027. Summit also extended the Double E Mainline Compression Expansion open season through the end of August while working to secure additional firm transportation agreements and reach a final investment decision.

Recent insider transactions

The supplied six-month insider summary reports 1,425,092 shares purchased across 12 transactions and 12,600 shares sold across two transactions, resulting in net purchases of 1,412,492 shares. The largest disclosed transaction among the latest entries was a March purchase by Connect Midstream, a beneficial owner of more than 10% of a class of securities; stock grants and gifts should not be interpreted as open-market purchases.

The transaction data do not establish insiders’ views about Summit’s future performance.

Risks investors need to watch

• Piceance contract support is approaching expiration. Minimum-volume-commitment shortfall payments contributed $4.2 million to Q2 adjusted EBITDA. The commitments underlying substantially all Piceance shortfall payments expire at the end of Q3 2026.
• Revenue growth is not fully translating into EBITDA growth. Higher commodity-related sales carried higher natural gas and NGL costs, while Corporate and Other expenses also increased year over year.
• Leverage and interest costs remain significant. Total leverage was approximately 4.1 times, and quarterly interest expense increased to $27.4 million from $23.9 million.
• The larger capital program may limit near-term free cash flow. Summit raised both ends of its capital expenditure range by $15 million, while many of the additional Williston wells are expected to have minimal impact on 2026 results.
• Piceance volumes remain exposed to natural declines. Temporary shut-in production resumed by the end of July, but the quarter also included natural production declines and no new well connections in the segment.

Summary

Summit Midstream produced higher revenue, positive GAAP earnings and improved operating cash flow in Q2 2026, but adjusted EBITDA remained nearly flat year over year. Rockies and Double E provided the clearest operating support, while Piceance, Mid-Con and higher corporate costs limited consolidated growth. The main issues to monitor are execution of the expanded capital program, additional Williston connections, Double E expansion agreements and the effect of Piceance minimum-volume commitments expiring after the third quarter.