Summit Midstream Corporation: Many Tailwinds Are Now In Play

Kevin George
3.99K Followers
(9min)

Summary

  • Summit Midstream Partners' acquisition of Tall Oak Midstream for $450M is set to boost EBITDA and cash flow, enhancing shareholder returns.
  • Tensions in the Middle East and potential oil & gas price increases make Summit's domestic focus and balanced oil-gas exposure attractive.
  • Summit's favorable valuation, with P/E and cash flow ratios significantly lower than the sector average, presents a strong investment opportunity.
  • Access to the Gulf of Mexico markets and limited capital expenditure needs position Summit for growth, and dividends or buybacks are on deck for 2025.

Oil Refinery And Pipeline

imaginima

In this article, I will discuss Summit Midstream Partners (NYSE:SMC) as it commits to an acquisition that can boost EBITDA and cash flow in an already undervalued company.

Introduction to Summit Midstream Partners

Summit Midstream Corp. is headquartered in

This article was written by

3.99K Followers
I am an active trader in stocks, FX, crypto, and commodities with over 15 years of market experience. I hold a master's degree in finance and mix microeconomic studies of company financials with a big-picture macroeconomic view.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SMC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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