Michael Fitzsimmons
Oil & gas, dividend investing, research analyst

Summit Midstream: Completion Of Marcellus DUCs Won't Offset Continued Piceance Basin Stagnation

Like many MLPs, small-cap (~$1 billion) Summit Midstream (NYSE:SMLP) has had a rough time of late. Its growth trajectory has slowed significantly and units are trading at half their value as compared with the start of 2015. Some of the decline can be attributed to producers in Summit's locales drilling but not completing wells ("DUCs"). This has resulted in falling throughput rates across much of Summit's asset base. While as many as 32 Marcellus wells in Summit's operating region could come online during the first half of 2016, it won't be enough to offset stagnation in Summit's largest operating segment: the Piceance Basin.

Asset Base

Summit Midstream has assets across four shale plays:

  • Marcellus: natural gas gathering.
  • Williston
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