Summit Midstream Corp (SMC) 2025 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the third-quarter 2025 Summit Midstream Corporation earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

各位來賓，感謝您的耐心等待。歡迎參加Summit Midstream Corporation 2025年第三季財報電話會議。 （操作說明）請注意，本次會議正在錄音。

I would now like to hand the conference over to your speaker today, Randall Burton, Vice President, Finance and Treasurer. Please go ahead.

現在我把會議交給今天的發言人，財務副總裁兼司庫蘭德爾‧伯頓先生。請開始吧。

Thanks, operator, and good morning, everyone. If you don't already have a copy of our earnings release, please visit our website at summitmidstream.com, where you'll find it on the homepage, Events and Presentations section or Quarterly Results section. With me today to discuss our third quarter of 2025 financial and operating results is Heath Deneke, our President, Chief Executive Officer and Chairman; Bill Mault, our Chief Financial Officer, along with other members of our senior management team.

謝謝接線員，大家早安。如果您還沒有收到我們的獲利報告，請造訪我們的網站 summitmidstream.com，您可以在首頁的「活動與簡報」或「季度業績」欄位中找到它。今天與我一起討論我們2025年第三季財務和營運業績的有：總裁、執行長兼董事長希思·德內克 (Heath Deneke)；首席財務長比爾‧莫爾特 (Bill Mault)；以及其他高階管理團隊成員。

Before we start, I'd like to remind you that our discussion today may contain forward-looking statements. These statements may include, but are not limited to, our estimates of future volumes, operating expenses and capital expenditures. They may also include statements concerning anticipated cash flow, liquidity, business strategy and other plans and objectives for future operations. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can provide no assurance that such expectations will prove to be correct. Please see SMC's annual report on Form 10-K for the fiscal year ended December 31, 2024, which the company filed with the SEC on March 11, 2025, as well as our other SEC filings for a listing of factors that could cause actual results to differ materially from expected results.

在開始之前，我想提醒各位，我們今天的討論可能包含前瞻性陳述。這些陳述可能包括但不限於我們對未來銷售、營運費用和資本支出的估計。它們還可能包括有關預期現金流、流動性、業務策略以及未來營運的其他計劃和目標的陳述。儘管我們認為這些前瞻性陳述中所反映的預期是合理的，但我們無法保證這些預期最終會實現。請參閱SMC截至2024年12月31日止財政年度的10-K表格年度報告（該公司已於2025年3月11日向美國證券交易委員會提交），以及我們向美國證券交易委員會提交的其他文件，其中列出了可能導致實際結果與預期結果存在重大差異的因素。

Please also note that on this call, we use the terms EBITDA, adjusted EBITDA, distributable cash flow and free cash flow. These are non-GAAP financial measures, and we have provided reconciliations to the most directly comparable GAAP measures in our most recent earnings release.

另請注意，本次電話會議中使用了 EBITDA、調整後 EBITDA、可分配現金流量和自由現金流量等術語。這些均為非公認會計準則 (非GAAP) 財務指標，我們在最近的獲利報告中已提供了與最直接可比較的公認會計準則 (GAAP) 指標的調節表。

And with that, I'll turn the call over to Heath.

接下來，我將把電話交給希思。

Great. All right. Thanks, Randall, and good morning, everyone. We had a strong third quarter with continued growth across our operating footprint. Adjusted EBITDA was $65.5 million, which is more than a 7% increase from the second quarter and representing roughly $260 million of run rate EBITDA.

太好了。好的。謝謝蘭德爾，大家早安。我們第三季業績強勁，業務遍及各個營運區域，持續成長。調整後 EBITDA 為 6,550 萬美元，較第二季成長超過 7%，相當於約 2.6 億美元的年化 EBITDA。

We also generated $36.7 million of distributable cash flow and $16.7 million of free cash flow during the quarter. Operationally, we connected 21 new wells during the third quarter, and our customer base remains very active with five drilling rigs and more than 90 drilled but uncompleted wells behind our systems. Additionally, volumes on the Double E Pipeline continued to grow throughout the quarter, hitting new record averages of 712 million a day for the quarter and 745 million a day for the month of September. As we've disclosed in previous quarters, we continue to expect financial results to trend towards the low end of our guidance -- our original 2025 adjusted EBITDA guidance range, primarily as a result of certain well connects being delayed. However, those timing delays have been short-lived as we expect to connect an additional 50 wells to the system during the fourth quarter and end the year around the midpoint of our original well connect guidance range of 125 to 185 wells.

本季我們也創造了3,670萬美元的可分配現金流和1,670萬美元的自由現金流。營運方面，我們在第三季連接了21口新井，我們的客戶群依然非常活躍，目前有5台鑽機和90多口已鑽但尚未完工的井在我們系統後方作業。此外，Double E管線的輸氣量在本季持續成長，創下季度平均日輸氣量7.12億噸及9月平均日輸氣量7.45億噸的新紀錄。正如我們在前幾個季度所揭露的那樣，我們仍然預計財務業績將趨向於我們先前2025年調整後EBITDA預期範圍的下限，這主要是由於部分井的連接工作有所延遲。然而，這些時間上的延遲是短暫的，因為我們預計將在第四季度將另外50口井連接到該系統，並在年底前將井連接數量達到我們先前125至185口井預期範圍的中點。

We expect the makeup in customer activity during the fourth quarter to drive a significant volumetric and EBITDA growth as we look ahead into 2026.

我們預計，到 2026 年，第四季度客戶活動的變化將推動銷售和 EBITDA 實現顯著成長。

And finally, we remain encouraged by the level of customer engagement and visibility into next year's programs. We're currently working with several customers on their 2026 development plans, which include more than 120 new well connects in the first half of 2026. As customers continue to develop their budget and development schedules for the full year, that number could increase significantly as customers begin to fill in the back half of '26 with additional development.

最後，客戶的高度參與和對明年專案的清晰了解令我們倍感鼓舞。目前，我們正與多家客戶合作制定2026年的發展計劃，其中包括2026年上半年新增120多個油井連接點。隨著客戶繼續完善全年預算和開發計劃，隨著他們在2026年下半年開展更多開發項目，這一數字可能會顯著增加。

And with that, I'd like to turn the call over to Bill to walk through the financial and segment level details.

接下來，我想把電話交給比爾，讓他詳細介紹一下財務和細分市場層面的情況。

Thanks, Heath, and good morning, everyone. Summit reported third quarter adjusted EBITDA of $65.5 million and capital expenditures of $22.9 million, with the majority of the capital spent in the Rockies and Mid-Con segments related to pad connections and compressor relocations. Year-to-date capital expenditures included approximately $14 million of nonrecurring integration and optimization projects. We expect these projects to be materially complete by the end of 2025. So far this year, we have successfully redeployed seven latent compressors from the Piceance and two from the DJ Basin to the Arkoma and have identified an additional three units that we are actively working to relocate.

謝謝希思，大家早安。 Summit公佈第三季調整後EBITDA為6,550萬美元，資本支出為2,290萬美元，其中大部分資本支出用於落基山脈和中部地區的機組連接和壓縮機搬遷。今年迄今的資本支出包括約1400萬美元的非經常性整合和優化項目。我們預計這些項目將於2025年底基本完成。今年到目前為止，我們已成功將七台皮森斯（Piceance）機組和兩台丹佛盆地（DJ Basin）機組的閒置壓縮機搬遷至阿科馬（Arkoma）油田，並已確定另外三台機組正在積極進行搬遷工作。

While we are incurring the capital investment today, we would expect these activities to mitigate compressor lease expense and improve EBITDA margin beginning in 2026. We expect all 12 latent units being relocated to represent over $4 million in annual compressor lease expense. With respect to Summit's balance sheet, we had net debt of approximately $950 million, and our available borrowing capacity at the end of the first quarter totaled $349 million, which included $1 million of undrawn letters of credit.

雖然我們目前需要進行資本投資，但我們預計這些措施將從2026年開始降低壓縮機租賃費用並提高EBITDA利潤率。我們預計所有12台待搬遷的機組每年將節省超過400萬美元的壓縮機租賃費用。關於Summit的資產負債表，我們的淨債務約為9.5億美元，第一季末的可用借款額度為3.49億美元，其中包括100萬美元的未提取信用證。

And now on to the segments. The Rockies segment, which is inclusive of our DJ and Williston Basin systems, generated adjusted EBITDA of $29 million, an increase of $3.8 million from the second quarter, driven by an increase in fixed fee revenue and improved product margin. Product margin benefited from increased volume throughput and stronger realized NGL and condensate pricing, partially offset by lower residue gas prices. As a reminder, the Rockies region tends to have seasonally higher residue gas prices in the fourth and first quarters each year. Natural gas volume throughput averaged 158 million cubic feet per day during the quarter, an increase of approximately 7.5% relative to the second quarter, primarily due to first half of 2025 well connections reaching peak production and increased third-party onloads.

接下來是各業務板塊的業績。落基山脈業務板塊（包括我們的丹佛-朱爾斯堡盆地和威利斯頓盆地系統）調整後EBITDA為2900萬美元，較第二季度增長380萬美元，主要得益於固定費用收入增加和產品利潤率提高。產品利潤率的提升得益於天然氣吞吐量增加以及凝析油和液化天然氣實際價格走強，但部分被殘餘氣價格下跌所抵消。需要注意的是，落磯山脈地區每年的第四季和第一季殘餘氣價格通常較高。本季天然氣日均吞吐量為1.58億立方英尺，較第二季度增加約7.5%，主要原因是2025年上半年的井口連接達到產量高峰以及第三方轉運量增加。

Liquids volumes averaged 72,000 barrels per day, a decrease of 6,000 barrels per day relative to the second quarter, primarily due to natural production declines. We connected nine new wells in the quarter, four in the DJ and five in the Williston and currently have three rigs running and about 75 DUCs behind the system.

液體產量平均為每日7.2萬桶，較第二季減少6,000桶，主因是自然產量下降。本季我們新增了9口井，其中4口位於丹佛-朱爾斯堡（DJ）頁岩層，5口位於威利斯頓（Williston）頁岩層。目前有3台鑽孔機正在運行，系統後方還有約75口未完工井（DUC）。

Before moving on to the other segments, Summit is disclosing some incremental information in its 10-Q to further break down gathering-related fees between its liquids business and natural gas business. We think this incremental disclosure will help our investors further understand and estimate revenue contribution based on liquids and natural gas volume throughput. Please make sure to reach out to Randall or I if you have any questions.

在介紹其他業務板塊之前，Summit 將在 10-Q 表格中披露一些新增信息，以進一步細分其液體業務和天然氣業務的集輸相關費用。我們認為，這些新增資訊將有助於投資者更深入地了解和估算基於液體和天然氣吞吐量的收入貢獻。如有任何疑問，請隨時聯絡 Randall 或我。

The Permian Basin segment, which includes our 70% interest in the Double E Pipeline, reported adjusted EBITDA of $8.7 million, an increase of $0.4 million, primarily due to higher volume throughput. We continue to expect Double E growth as existing take-or-pay contracts continue to ramp up from approximately 1.069 Bcf per day on average in 2025 to 1.115 Bcf per day in 2026, with an additional 100 million cubic feet per day contract from the recently announced new contract that we expect to come online in the fourth quarter of 2026. We expect Double E contracted volumes to be 1.215 Bcf per day in 2027, representing over 13% growth relative to 2025, which would correspond to over $40 million of EBITDA net to Summit. The team continues to make good progress commercializing the remaining free float capacity, and we will keep you all updated as the contracts materialize.

二疊紀盆地業務板塊（包括我們持有的Double E管道70%的權益）的調整後EBITDA為870萬美元，較上年增長40萬美元，主要得益於輸送量增加。我們預計Double E管道將持續成長，現有照付不議合約的輸送量將從2025年的平均每日約10.69億立方英尺增至2026年的每日11.15億立方英尺，此外，我們近期宣布的新合約預計將於2026年第四季投產，每日輸送量將增加1億立方英尺。我們預計Double E管道2027年的合約輸送量將達到每日12.15億立方英尺，較2025年增長超過13%，這將為Summit公司帶來超過4000萬美元的淨EBITDA。團隊在剩餘自由流通產能的商業化方面持續取得良好進展，我們將隨著合約的落實及時向大家報告最新情況。

As a reminder, if Summit subscribes the full 1.5 Bcf per day of free flow capacity, we would expect Double E to generate approximately $50 million of EBITDA net to Summit. During the quarter, Double E averaged 712 million cubic feet per day of throughput and averaged 745 million cubic feet per day during September. The Piceance segment reported adjusted EBITDA of $12.5 million, an increase of $2 million relative to the second quarter due primarily to realization of previously deferred revenue and lower operating expenses, partially offset by approximately 1.5% decrease in volume throughput.

再次提醒，如果Summit公司全部租用每日15億立方英尺的自由流動產能，我們預期Double E公司將為Summit公司帶來約5000萬美元的淨EBITDA。本季度，Double E公司日均吞吐量為7.12億立方英尺，9月份日均吞吐量為7.45億立方英尺。 Piceance業務板塊調整後EBITDA為1,250萬美元，較第二季成長200萬美元，主要得益於先前遞延收入的實現和營運費用的降低，但部分被吞吐量下降約1.5%所抵銷。

The Mid-Con segment reported adjusted EBITDA of $23.6 million, a decrease of $1.3 million relative to the second quarter, primarily due to lower product margin, partially offset by an increase in volume throughput. The throughput increase was driven by six new wells in the Arkoma and six in the Barnett, partially offset by natural production declines. Our key customer in the Arkoma is actively running a rig to execute on its 20-well development program, which we expect to drive 5% to 10% volumetric growth in the Arkoma from 2025 to 2026. There is currently one rig running in the Arkoma and one in the Barnett with 18 DUCs behind the system, all of which 17 are expected to come online in 2026.

中型企業業務部門調整後EBITDA為2,360萬美元，較第二季減少130萬美元，主因是產品利潤率下降，部分被產量成長抵銷。產量成長主要得益於阿科馬盆地和巴內特盆地各新增6口井，部分被自然產量下降所抵銷。我們在阿科馬盆地的主要客戶正在積極運營一台鑽機，以執行其20口井的開發計劃，我們預計該計劃將推動阿科馬盆地2025年至2026年產量增長5%至10%。目前，阿科馬盆地和巴內特盆地各有一台鑽孔機正在運行，系統後方共有18口未完工井（DUC），其中17口預計將於2026年投入生產。

And with that, I'll turn the call back over to Heath for closing remarks.

接下來，我將把電話轉回給希思，請他作總結發言。

Thanks, Bill. In summary, we're pleased with our third quarter performance and the continued momentum we're seeing across the business. Volumes are growing, customers remain active, and our balance sheet is strong. We're also excited about the momentum in the business with strong third quarter results and significant expected activity in the fourth quarter and for the first half of next year. We plan to release full year 2026 financial guidance during our fourth quarter earnings release, and we'll continue to work with customers to firm up second half of '26 development plan.

謝謝比爾。總而言之，我們對第三季的業績以及業務持續成長的勢頭感到滿意。銷售量不斷成長，客戶保持活躍，我們的資產負債表也很穩健。我們對業務的強勁勢頭感到振奮，第三季業績表現強勁，預計第四季和明年上半年業務活動也將十分活躍。我們計劃在第四季財報發佈時公佈2026年全年財務預期，並將繼續與客戶合作，制定2026年下半年的發展計畫。

And with that, operator, I'd like to open the call for questions.

話筒，接下來我將開始接受提問。

(Operator Instructions) This concludes today's conference call. Thank you for participating. You may now disconnect.

（操作員說明）今天的電話會議到此結束。感謝您的參與。您可以斷開連線了。