Dec. 11, 2015, 12:47 PM
Dec. 11, 2015, 11:59 AM
- Summit Midstream Partners (SMLP +20.9%) is one of the energy sector's few gainers today, after announcing that Energy Capital Partners, the P-E firm that controls Summit Investments, concluded its previously announced strategic review process and determined that it would not sell its stake in Summit.
- ECP says it continues to evaluate specific drop-down alternatives, including materially accelerating the timing of Summit's plan to execute $400M-$800M in drop-down transactions each year through 2017.
- Summit Investments says SMLP would not need to issue equity to finance the purchase of drop-down assets in 2016.
Sep. 25, 2015, 12:44 PM
Sep. 24, 2015, 12:40 PM
Sep. 23, 2015, 2:28 PM
- Energy Capital Partners is seeking buyers for its interest in Summit Midstream Partners (SMLP -4.2%), a deal that would include a minority stake in the pipeline operator as well as ownership of its general partner, Bloomberg reports.
- The P-E firm reportedly is working with Barclays to find a buyer for the assets, which could fetch at least $2B.
- Energy Capital indirectly owns ~44% limited partnership interest in SMLP.
Aug. 17, 2015, 10:45 AM
- A deteriorating macro energy macro environment is posing challenges to growth, writes Baird's Ethan Bellamy, downgrading Summit Midstream Partners (SMLP -2.4%) to Neutral, with price target cut to $26 from $39.
- The company, says Bellamy just revised its 2015 drop down guidance to the low end or even below the low end of previous guidance. While management believes 2016 could be a big year for the drop down program, conference call comments noted "wide bid/ask spreads," suggesting lower-than-hoped "accretion economics" should macro headlines persist.
Aug. 7, 2015, 3:47 PM
- Summit Midstream Partners (SMLP -7.3%) is sharply lower despite "decent" Q2 results with adjusted EBITDA of $54M and distributable cash flow of $40M in line with consensus, and declaring a $0.57 distribution/unit for Q2 (+9.6% Y/Y) which puts SMLP on track to meet its 7%-8% DPU growth guidance.
- Today's drop echoes concerns that slammed Plains All American this week over distribution growth, as SMLP said in its earnings call that is lowering forward guidance for distribution growth to 4%-6% in the year ahead compared to previous guidance of 7%-8% growth.
- Wunderlich's Jeff Birnbaum says SMLP is not covering 100% of its distributions with cash flow, calculating that the company is covering 95% in H2; the analyst lowers his price target to $34 from $37 but keeps his Buy rating.
Jul. 1, 2015, 11:31 AM
- Summit Midstream Partners (SMLP -1.5%) is initiated with a Buy rating and $42 fair value estimate at Janney, which sees distributions growing at 10%-plus/year, faster than investors appear to expect.
- The firm also predicts SMLP will increase its exposure to the higher valued northeast region, which could help its valuation expand.
- Janney says SMLP is highly contracted and thus a lower risk than many MLP peers, with limited downside to cash flow in the near term thanks to a combination of fee-based contracts and minimum volume commitments.
Jun. 26, 2015, 10:55 AM
- Summit Midstream Partners (SMLP +2.8%) is initiated with a Buy rating and $37 price target at Wunderlich, which says concerns of "orphan risk" are overdone, although the firm admits it is impossible to rule out a sale of the GP, Summit Investments, in the current environment.
- Wunderlich expects Utica to be the next leg of SMLP's growth, seeing the first dropdown of Utica assets in H2 with more to come in 2016; the firm believes management may structure drops to improve accretion to the LP, which could improve sentiment, as could any new acreage dedications in the Utica.
May 6, 2015, 4:52 PM
- Summit Midstream Partners (NYSE:SMLP) -4.3% AH after announcing a public offering of 6.5M common units, with an underwriters option to purchase up to an additional 975K units.
- SMLP says it plans to use the proceeds to fund part of the purchase price of its pending acquisition of all membership interests in Polar Midstream and Epping Transmission Co.
Sep. 4, 2014, 9:17 AM
- Summit Midstream Partners (NYSE:SMLP) -5.2% premarket after pricing an upsized public offering of ~4.35M common units at $53.88 each.
- SMLP will receive no proceeds from the offering, and the number of SMLP's outstanding common units will remain unchanged.
- The offering was upsized from a previously announced 4M units.
Sep. 4, 2014, 9:10 AM
Mar. 12, 2014, 2:57 PM
- Summit Midstream Partners (SMLP +9.5%) is upgraded to Outperform from Neutral with a $45 price target, up from $42, at Robert W. Baird after yesterday's announced $305M drop-down acquisition from its sponsor, Summit Investments, at an estimated 13% accretion and 8.7x EBITDA multiple.
- SMLP also announced expected Y/Y distribution growth of 15%-20%, while Baird had expected 13.5%; the firm raises its 2014 and 2015 DPU estimates by 3% and 7%, respectively, to account for the transaction and updated drop-down assumptions.
Mar. 5, 2014, 11:59 AM
- Robert W. Baird refreshes its outlook for master limited partnerships with six downgrades: five high-growth partnerships that now look fairly valued - NGL Energy Partners (NGL -1.8%), New Source Energy (NSLP -4%), Plains GP Holdings (PAGP -0.3%), Summit Midstream Partners (SMLP -0.6%) and Tallgrass Energy Partners (TEP -2.7%) - and are cut to Neutral from Outperform, and a reduction for Whiting USA Trust II (WHZ -0.7%) to Underperform from Neutral on elevated commodity risk.
- The firm recommends recycling capital into its top investment ideas: ONEOK Partners (OKS -1.2%), Plains All American Pipeline (PAA +0.9%), Rose Rock Midstream (RRMS +0.2%) and Crosstex Energy LP (XTEX -1.5%)
- Despite downgrading multiple high-quality MLPs, Baird says its long-term bullish view on the sector remains unchanged (Briefing.com).
Jan. 9, 2013, 10:42 AM
Summit Midstream Partners (SMLP -4.9%) is sharply lower in early trading after announcing the acquisition of privately-held Bear Tracker Energy, which owns assets in service and under development in the Bakken shale and Three Forks formation in North Dakota and the Niobrara shale in Colorado, for $513M.| Jan. 9, 2013, 10:42 AM