QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||
* |
x | o | No |
Large accelerated filer | ☐ | x | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
2015 Blacktail Release | a 2015 rupture of our four-inch produced water gathering pipeline near Williston, North Dakota | ||||
2022 DJ Acquisitions | the acquisition of Outrigger DJ Midstream LLC from Outrigger Energy II LLC, and each of Sterling Energy Investments LLC, Grasslands Energy Marketing LLC and Centennial Water Pipelines LLC from Sterling Investment Holdings LLC | ||||
2025 Senior Notes | Summit Holdings' and Finance Corp.’s 5.75% senior unsecured notes due April 2025 | ||||
2026 Secured Notes | Summit Holdings' and Finance Corp.’s 8.500% senior secured second lien notes due October 2026 | ||||
2026 Secured Notes Indenture | Indenture, dated as of November 2, 2021, by and among Summit Holdings, Finance Corp., the guarantors party thereto and Regions Bank, as trustee | ||||
2026 Unsecured Notes | Summit Holdings’ and Finance Corp.’s 12.00% senior unsecured notes due October 2026 | ||||
2029 Notes | Summit Holdings’ 8.625% Senior Secured Second Lien Notes due October 2029 | ||||
ABL Agreement | Loan and Security Agreement, dated as of November 2, 2021, among Summit Holdings, as borrower, SMLP and certain subsidiaries from time to time party thereto, as guarantors, Bank of America, N.A., as agent, ING Capital LLC, Royal Bank of Canada and Regions Bank, as co-syndication agents, and Bank of America, N.A., ING Capital LLC, RBC Capital Markets and Regions Capital Markets, as joint lead arrangers and joint bookrunners | ||||
ABL Facility | the asset-based lending credit facility governed by the ABL Agreement | ||||
ASU | Accounting Standards Update | ||||
Bcf/d | one billion cubic feet per day | ||||
Board of Directors | the board of directors of our General Partner | ||||
Co-Issuers | Summit Holdings and Finance Corp., as co-issuers of the 2025 Senior Notes, the 2026 Unsecured Notes and the 2026 Secured Notes | ||||
condensate | a natural gas liquid with a low vapor pressure, mainly composed of propane, butane, pentane and heavier hydrocarbon fractions | ||||
Corporate Reorganization | the August 1, 2024 consummation of a transaction that resulted in the Partnership becoming a wholly owned subsidiary of a newly formed Delaware corporation, Summit Midstream Corporation (taxed as a C-corporation) | ||||
DFW Midstream | DFW Midstream Services LLC | ||||
DJ Basin | Denver-Julesburg Basin | ||||
Double E | Double E Pipeline, LLC |
Double E Pipeline | a 135 mile, 1.35 Bcf/d, FERC-regulated interstate natural gas transmission pipeline that commenced operations in November 2021 and provides transportation service from multiple receipt points in the Delaware Basin to various delivery points in and around the Waha hub in Texas | ||||
Double E Project | the development and construction of the Double E Pipeline | ||||
EPA | Environmental Protection Agency | ||||
EPU | earnings or loss per unit | ||||
FASB | Financial Accounting Standards Board | ||||
Finance Corp. | Summit Midstream Finance Corp. | ||||
fracking | the process of injecting liquid at high pressure into subterranean rocks, boreholes, etc. so as to force open existing fissures and extract oil or gas | ||||
frac-protect activities | activities that are designed to protect existing hydrocarbon wells from harm by shutting in existing hydrocarbon production until new well activities have concluded | ||||
GAAP | accounting principles generally accepted in the United States of America | ||||
General Partner | Summit Midstream GP, LLC | ||||
GP | general partner | ||||
Grand River | Grand River Gathering, LLC | ||||
Guarantor Subsidiaries | Grand River, DFW Midstream, Summit Marketing, OpCo, Meadowlark Midstream, Summit Permian II, LLC, Epping Transmission Company, LLC, Red Rock Gathering, Polar Midstream, LLC, Summit Niobrara, Grasslands Energy Marketing LLC, Summit DJ-O, LLC, Summit DJ-O Operating, LLC, and Summit DJ-S, LLC. | ||||
Hub | geographic location of a storage facility and multiple pipeline interconnections | ||||
Mbbl/d | one thousand barrels per day | ||||
MD&A | Management's Discussion and Analysis of Financial Condition and Results of Operations | ||||
Meadowlark Midstream | Meadowlark Midstream Company, LLC | ||||
MMBTU | metric million British thermal units | ||||
MMcf/d | one million cubic feet per day | ||||
Mountaineer Midstream | Mountaineer Midstream Company, LLC | ||||
MVC | minimum volume commitment | ||||
NGLs | natural gas liquids; the combination of ethane, propane, normal butane, iso-butane and natural gasolines that when removed from unprocessed natural gas streams become liquid under various levels of higher pressure and lower temperature | ||||
NYSE | New York Stock Exchange | ||||
OCC | Ohio Condensate Company, L.L.C. | ||||
OGC | Ohio Gathering Company, L.L.C. | ||||
Ohio Gathering | Ohio Gathering Company, L.L.C. and Ohio Condensate Company, L.L.C. | ||||
OpCo | Summit Midstream OpCo, LP | ||||
play | a proven geological formation that contains commercial amounts of hydrocarbons | ||||
Permian Holdco | Summit Permian Transmission Holdco, LLC | ||||
Permian Term Loan Facility | the term loan governed by the Credit Agreement, dated as of March 8, 2021, among Summit Permian Transmission, LLC, as borrower, MUFG Bank Ltd., as administrative agent, Mizuho Bank (USA), as collateral agent, ING Capital LLC, Mizuho Bank, Ltd. and MUFG Union Bank, N.A., as L/C issuers, coordinating lead arrangers and joint bookrunners, and the lenders from time to time party thereto | ||||
Permian Transmission Credit Facilities | the credit facilities governed by the Credit Agreement, dated as of March 8, 2021, among Summit Permian Transmission, LLC, as borrower, MUFG Bank Ltd., as administrative agent, Mizuho Bank (USA), as collateral agent, ING Capital LLC, Mizuho Bank, Ltd. and MUFG Union Bank, N.A., as L/C issuers, coordinating lead arrangers and joint bookrunners, and the lenders from time to time party thereto | ||||
produced water | water from underground geologic formations that is a by-product of natural gas and crude oil production | ||||
Red Rock Gathering | Red Rock Gathering Company, LLC | ||||
SEC | Securities and Exchange Commission | ||||
Securities Act | Securities Act of 1933, as amended | ||||
segment adjusted EBITDA | total revenues less total costs and expenses; plus (i) other income excluding interest income, (ii) our proportional adjusted EBITDA for equity method investees, (iii) depreciation and amortization, (iv) adjustments related to MVC shortfall payments, (v) adjustments related to capital reimbursement activity, (vi) unit-based and noncash compensation, (vii) impairments and (viii) other noncash expenses or losses, less other noncash income or gains | ||||
Senior Notes | The 2025 Senior Notes, the 2026 Unsecured Notes and the 2026 Secured Notes, collectively | ||||
Series A Preferred Units | Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units issued by the Partnership | ||||
shortfall payment | the payment received from a counterparty when its volume throughput does not meet its MVC for the applicable period | ||||
SMLP | Summit Midstream Partners, LP | ||||
SMLP LTIP | SMLP 2022 Long-Term Incentive Plan | ||||
SOFR | Secured Overnight Financing Rate | ||||
Subsidiary Series A Preferred Units | Series A Fixed Rate Cumulative Redeemable Preferred Units issued by Permian Holdco | ||||
Summit Holdings | Summit Midstream Holdings, LLC | ||||
Summit Investments | Summit Midstream Partners, LLC | ||||
Summit Marketing | Summit Midstream Marketing, LLC | ||||
Summit Niobrara | Summit Midstream Niobrara, LLC | ||||
Summit Permian II | Summit Midstream Permian II, LLC | ||||
Summit Permian Transmission | Summit Permian Transmission, LLC | ||||
Summit Utica | Summit Midstream Utica, LLC | ||||
the Partnership | Summit Midstream Partners, LP and its subsidiaries | ||||
the Partnership Agreement | the Fourth Amended and Restated Agreement of Limited Partnership of the Partnership dated May 28, 2020, as amended | ||||
throughput volume | the volume of natural gas, crude oil or produced water gathered, transported or passing through a pipeline, plant or other facility during a particular period; also referred to as volume throughput | ||||
unconventional resource basin | a basin where natural gas or crude oil production is developed from unconventional sources that require hydraulic fracturing as part of the completion process, for instance, natural gas produced from shale formations and coalbeds; also referred to as an unconventional resource play | ||||
wellhead | the equipment at the surface of a well, used to control the well's pressure; also, the point at which the hydrocarbons and water exit the ground |
June 30, 2024 | December 31, 2023 | ||||||||||
(In thousands, except unit amounts) | |||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Intangible assets, net | |||||||||||
Investment in equity method investees | |||||||||||
Other noncurrent assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND CAPITAL | |||||||||||
Trade accounts payable | $ | $ | |||||||||
Accrued expenses | |||||||||||
Deferred revenue | |||||||||||
Ad valorem taxes payable | |||||||||||
Accrued compensation and employee benefits | |||||||||||
Accrued interest | |||||||||||
Accrued environmental remediation | |||||||||||
Accrued settlement payable | |||||||||||
Current portion of long-term debt | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net | |||||||||||
Noncurrent deferred revenue | |||||||||||
Noncurrent accrued environmental remediation | |||||||||||
Other noncurrent liabilities | |||||||||||
TOTAL LIABILITIES | |||||||||||
Commitments and contingencies (Note 14) | |||||||||||
Mezzanine Capital | |||||||||||
Subsidiary Series A Preferred Units ( | |||||||||||
Partners' Capital | |||||||||||
Series A Preferred Units ( | |||||||||||
Common limited partner capital ( | |||||||||||
Total partners' capital | |||||||||||
TOTAL LIABILITIES AND CAPITAL | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(In thousands, except per-unit amounts) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Gathering services and related fees | $ | $ | $ | $ | |||||||||||||||||||
Natural gas, NGLs and condensate sales | |||||||||||||||||||||||
Other revenues | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Operation and maintenance | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Transaction costs | |||||||||||||||||||||||
Acquisition integration costs | |||||||||||||||||||||||
(Gain) loss on asset sales, net | ( | ( | |||||||||||||||||||||
Long-lived asset impairments | |||||||||||||||||||||||
Total costs and expenses | |||||||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Gain on interest rate swaps | |||||||||||||||||||||||
Gain (loss) on sale of business | ( | ( | ( | ||||||||||||||||||||
Gain on sale of Ohio Gathering | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Loss on early extinguishment of debt | ( | ( | |||||||||||||||||||||
Income (loss) before income taxes and equity method investment income | ( | ( | ( | ||||||||||||||||||||
Income tax benefit | |||||||||||||||||||||||
Income from equity method investees | |||||||||||||||||||||||
Net income (loss) | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Less: Net income attributable to Subsidiary Series A Preferred Units | ( | ( | ( | ( | |||||||||||||||||||
Net income (loss) attributable to Summit Midstream Partners, LP | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Less: net income attributable to Series A Preferred Units | ( | ( | ( | ( | |||||||||||||||||||
Net income (loss) attributable to common limited partners | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Net income (loss) per limited partner unit: | |||||||||||||||||||||||
Common unit – basic | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Common unit – diluted | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Weighted-average limited partner units outstanding: | |||||||||||||||||||||||
Common units – basic | |||||||||||||||||||||||
Common units – diluted |
Partners' Capital | |||||||||||||||||
Series A Preferred Units | Common Limited Partners Capital | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Partners' capital, December 31, 2023 | $ | $ | $ | ||||||||||||||
Net income | |||||||||||||||||
Unit-based compensation | |||||||||||||||||
Tax withholdings and associated payments on vested SMLP LTIP awards | ( | ( | |||||||||||||||
Partners' capital, March 31, 2024 | $ | $ | $ | ||||||||||||||
Net income (loss) | ( | ( | |||||||||||||||
Unit-based compensation | |||||||||||||||||
Tax withholdings and associated payments on vested SMLP LTIP awards | ( | ( | |||||||||||||||
Partners' capital, June 30, 2024 | $ | $ | $ | ||||||||||||||
Partners' Capital | |||||||||||||||||
Series A Preferred Units | Common Limited Partners Capital | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Partners' capital, December 31, 2022 | $ | $ | $ | ||||||||||||||
Net income (loss) | ( | ( | |||||||||||||||
Unit-based compensation | |||||||||||||||||
Tax withholdings and associated payments on vested SMLP LTIP awards | ( | ( | |||||||||||||||
Partners' capital, March 31, 2023 | $ | $ | $ | ||||||||||||||
Net income (loss) | ( | $ | ( | ||||||||||||||
Unit-based compensation | |||||||||||||||||
Tax withholdings and associated payments on vested SMLP LTIP awards | ( | ( | |||||||||||||||
Partners' capital, June 30, 2023 | $ | $ | $ | ||||||||||||||
Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
(In thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Noncash lease expense | |||||||||||
Amortization of debt issuance costs | |||||||||||
Unit-based and noncash compensation | |||||||||||
Income from equity method investees | ( | ( | |||||||||
Distributions from equity method investees | |||||||||||
Interest income and other | ( | ( | |||||||||
Loss on early extinguishment of debt | |||||||||||
Gain on sale of business | ( | ||||||||||
Gain on sale of equity method investment | ( | ||||||||||
Unrealized (gain) loss on interest rate swaps | ( | ||||||||||
Long-lived asset impairment | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | |||||||||||
Trade accounts payable | ( | ||||||||||
Accrued expenses | ( | ( | |||||||||
Deferred revenue, net | ( | ( | |||||||||
Ad valorem taxes payable | ( | ( | |||||||||
Accrued interest | ( | ||||||||||
Accrued environmental remediation, net | ( | ||||||||||
Other, net | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from Summit Utica Sale (excluding Ohio Gathering) | |||||||||||
Proceeds from sale of Ohio Gathering | |||||||||||
Proceeds from Mountaineer Transaction | |||||||||||
Proceeds from asset sale | |||||||||||
Investment in Double E equity method investee | ( | ( | |||||||||
Other, net | ( | ||||||||||
Net cash provided by (used in) investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Debt repayments - ABL Facility | ( | ( | |||||||||
Debt repayments - Redemption of 2026 Unsecured Notes | ( | ||||||||||
Debt repayments - 2026 Secured Notes (Excess Cash Flow Offer) | ( | ||||||||||
Debt repayments - 2026 Secured Notes (Asset Sale Offer) | ( | ||||||||||
Debt repayments - Permian Transmission Term Loan | ( | ( | |||||||||
Borrowings on ABL Facility | |||||||||||
Distributions on Subsidiary Series A Preferred Units | ( | ( | |||||||||
Debt extinguishment costs | ( | ||||||||||
Debt issuance costs | ( | ||||||||||
Other, net | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net change in cash, cash equivalents and restricted cash | |||||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ |
(In thousands) | 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | |||||||||||||||||||||||||||||
Gathering services and related fees | $ | $ | $ | $ | $ | $ |
Three Months Ended June 30, 2024 | |||||||||||||||||||||||
Gathering services and related fees | Natural gas, NGLs and condensate sales | Other revenues | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||
Northeast | $ | $ | $ | $ | |||||||||||||||||||
Rockies | |||||||||||||||||||||||
Permian | |||||||||||||||||||||||
Piceance | |||||||||||||||||||||||
Barnett | |||||||||||||||||||||||
Total reportable segments | |||||||||||||||||||||||
Corporate and other | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Six Months Ended June 30, 2024 | |||||||||||||||||||||||
Gathering services and related fees | Natural gas, NGLs and condensate sales | Other revenues | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||
Northeast | $ | $ | $ | $ | |||||||||||||||||||
Rockies | |||||||||||||||||||||||
Permian | |||||||||||||||||||||||
Piceance | |||||||||||||||||||||||
Barnett | |||||||||||||||||||||||
Total reportable segments | |||||||||||||||||||||||
Corporate and other | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended June 30, 2023 | |||||||||||||||||||||||
Gathering services and related fees | Natural gas, NGLs and condensate sales | Other revenues | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||
Northeast | $ | $ | $ | $ | |||||||||||||||||||
Rockies | |||||||||||||||||||||||
Permian | |||||||||||||||||||||||
Piceance | |||||||||||||||||||||||
Barnett | |||||||||||||||||||||||
Total reportable segments | |||||||||||||||||||||||
Corporate and other | ( | ( | |||||||||||||||||||||
Total | $ | $ | $ | $ |
Six Months Ended June 30, 2023 | |||||||||||||||||||||||
Gathering services and related fees | Natural gas, NGLs and condensate sales | Other revenues | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Reportable Segments: | |||||||||||||||||||||||
Northeast | $ | $ | $ | $ | |||||||||||||||||||
Rockies | |||||||||||||||||||||||
Permian | |||||||||||||||||||||||
Piceance | |||||||||||||||||||||||
Barnett | |||||||||||||||||||||||
Total reportable segments | |||||||||||||||||||||||
Corporate and other | ( | ( | |||||||||||||||||||||
Total | $ | $ | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||
(In thousands) | |||||||||||
Gathering and processing systems and related equipment | $ | $ | |||||||||
Construction in progress | |||||||||||
Land and line fill | |||||||||||
Other | |||||||||||
Total | |||||||||||
Less: accumulated depreciation | ( | ( | |||||||||
Property, plant and equipment, net | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||
Depreciation expense | $ | $ | $ | $ | |||||||||||||||||||
Capitalized interest |
June 30, 2024 | December 31, 2023 | ||||||||||
(In thousands) | |||||||||||
Double E | $ | $ | |||||||||
Ohio Gathering | |||||||||||
Total | $ | $ |
Total | |||||
(In thousands) | |||||
Current deferred revenue, December 31, 2023 | $ | ||||
Add: additions | |||||
Less: revenue recognized and other | ( | ||||
Current deferred revenue, June 30, 2024 | $ |
Total | |||||
(In thousands) | |||||
Noncurrent deferred revenue, December 31, 2023 | $ | ||||
Add: additions | |||||
Less: reclassification to current deferred revenue and other | ( | ||||
Noncurrent deferred revenue, June 30, 2024 | $ |
June 30, 2024 | December 31, 2023 | ||||||||||
(In thousands) | |||||||||||
ABL Facility: Summit Holdings' asset based credit facility due May 1, 2026 | $ | $ | |||||||||
Permian Transmission Term Loan: Summit Permian Transmission's variable rate senior secured term loan due January 2028 | |||||||||||
2026 Unsecured Notes: | |||||||||||
2025 Senior Notes: | |||||||||||
2026 Secured Notes: | |||||||||||
Less: unamortized debt discount and debt issuance costs | ( | ( | |||||||||
Total debt, net of unamortized debt discount and debt issuance costs | |||||||||||
Less: current portion of Permian Transmission Term Loan and 2025 Senior Notes redemption | ( | ( | |||||||||
Total long-term debt | $ | $ |
(In thousands) | Total | 2024 | 2025 | 2026 | 2027 | 2028 | ||||||||||||||||||||||||||||||||
Amortizing principal repayments | $ | $ | $ | $ | $ | $ |
June 30, 2024 | December 31, 2023 | ||||||||||||||||||||||
Carrying Value (1) | Estimated fair value (Level 2) | Carrying Value (1) | Estimated fair value (Level 2) | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
2025 Senior Notes | $ | $ | $ | $ | |||||||||||||||||||
2026 Secured Notes | $ | $ | $ | $ | |||||||||||||||||||
2026 Unsecured Notes | $ | $ | $ | $ |
Common Units | |||||
Units, December 31, 2023 | |||||
Common units issued for SMLP LTIP, net | |||||
Units, June 30, 2024 |
(In thousands) | |||||
Balance at December 31, 2023 | $ | ||||
Redemption accretion, net of issuance cost amortization | |||||
Cash distribution (includes a $ | ( | ||||
Balance at June 30, 2024 | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(In thousands, except per-unit amounts) | |||||||||||||||||||||||
Numerator for basic and diluted EPU: | |||||||||||||||||||||||
Allocation of net loss among limited partner interests: | |||||||||||||||||||||||
Net income (loss) | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Less: Net income attributable to Subsidiary Series A Preferred Units | ( | ( | ( | ( | |||||||||||||||||||
Net income (loss) attributable to Summit Midstream Partners, LP | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Less: Net income attributable to Series A Preferred Units | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Net income (loss) attributable to common limited partners | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Denominator for basic and diluted EPU: | |||||||||||||||||||||||
Weighted-average common units outstanding – basic | |||||||||||||||||||||||
Effect of nonvested phantom units | |||||||||||||||||||||||
Weighted-average common units outstanding – diluted | |||||||||||||||||||||||
Net income (loss) per limited partner unit: | |||||||||||||||||||||||
Common unit – basic | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Common unit – diluted | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Nonvested anti-dilutive phantom units excluded from the calculation of diluted EPU |
Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
(In thousands) | |||||||||||
Supplemental cash flow information: | |||||||||||
Cash interest paid | $ | $ | |||||||||
Cash paid for taxes | $ | $ | |||||||||
Noncash investing and financing activities: | |||||||||||
Capital expenditures in trade accounts payable (period-end accruals) | $ | $ | |||||||||
Accretion of Subsidiary Series A Preferred Units, net of issuance cost amortization | $ | $ |
(In thousands) | |||||
Accrued environmental remediation, December 31, 2023 | $ | ||||
Payments made | ( | ||||
Changes in estimates | |||||
Accrued environmental remediation, June 30, 2024 | $ |
June 30, 2024 | December 31, 2023 | ||||||||||
(In thousands) | |||||||||||
Assets: | |||||||||||
Rockies | $ | $ | |||||||||
Permian | |||||||||||
Northeast | |||||||||||
Piceance | |||||||||||
Barnett | |||||||||||
Total reportable segment assets | |||||||||||
Corporate and Other | |||||||||||
Total assets | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Reportable segment adjusted EBITDA(1) | |||||||||||||||||||||||
Rockies | $ | $ | $ | $ | |||||||||||||||||||
Permian | |||||||||||||||||||||||
Northeast | |||||||||||||||||||||||
Piceance | |||||||||||||||||||||||
Barnett | |||||||||||||||||||||||
Total of reportable segments' measures of profit | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Reconciliation of loss before income taxes and income from equity method investees to total of reportable segments' measures of profit: | |||||||||||||||||||||||
Income (loss) before income taxes and income from equity method investees | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Add: | |||||||||||||||||||||||
Corporate and Other expense | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Depreciation and amortization (1) | |||||||||||||||||||||||
Proportional adjusted EBITDA for equity method investees (2) | |||||||||||||||||||||||
Adjustments related to capital reimbursement activity | ( | ( | ( | ( | |||||||||||||||||||
Unit-based and noncash compensation | |||||||||||||||||||||||
(Gain) loss on asset sales, net | ( | ( | |||||||||||||||||||||
(Gain) loss on sale of business | ( | ||||||||||||||||||||||
Gain on sale of Ohio Gathering | ( | ||||||||||||||||||||||
Long-lived asset impairment | |||||||||||||||||||||||
Transaction costs and other | |||||||||||||||||||||||
Early extinguishment of debt | |||||||||||||||||||||||
Total of reportable segments' measures of profit | $ | $ | $ | $ |
Period | Redemption Price | |||||||
July 31, 2026 to July 30, 2027 | % | |||||||
July 31, 2027 to July 30, 2028 | % | |||||||
July 31, 2028 and thereafter | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Net income (loss) | $ | (23,778) | $ | (13,540) | $ | 109,149 | $ | (27,703) | |||||||||||||||
Reportable segment adjusted EBITDA(1) | |||||||||||||||||||||||
Rockies | $ | 22,858 | $ | 16,858 | $ | 45,732 | $ | 39,988 | |||||||||||||||
Permian | 7,697 | 5,370 | 14,962 | 10,443 | |||||||||||||||||||
Northeast | 1,613 | 20,201 | 30,634 | 38,055 | |||||||||||||||||||
Piceance | 12,848 | 14,365 | 28,081 | 28,348 | |||||||||||||||||||
Barnett | 5,420 | 7,269 | 10,520 | 14,296 | |||||||||||||||||||
Net cash provided by operating activities | $ | (12,643) | $ | 1,945 | $ | 30,973 | $ | 51,640 | |||||||||||||||
Capital expenditures (2) | 10,522 | 15,740 | 26,920 | 32,178 | |||||||||||||||||||
Proceeds from Summit Utica Sale (excluding Ohio Gathering) | — | — | 292,266 | — | |||||||||||||||||||
Proceeds from sale of Ohio Gathering | — | — | 332,734 | — | |||||||||||||||||||
Proceeds from Mountaineer Transaction | 70,000 | — | 70,000 | — | |||||||||||||||||||
Proceeds from asset sale | 4,373 | 128 | 4,400 | 128 | |||||||||||||||||||
Investment in Double E equity method investee | 442 | — | 442 | 3,500 | |||||||||||||||||||
Debt repayments - ABL Facility | — | (24,000) | (313,000) | (37,000) | |||||||||||||||||||
Debt repayments - Redemption of 2026 Unsecured Notes | (209,510) | — | (209,510) | — | |||||||||||||||||||
Debt repayments - 2026 Secured Notes (Excess Cash Flow Offer) | (13,626) | — | (13,626) | — | |||||||||||||||||||
Debt repayments - 2026 Secured Notes (Asset Sale Offer) | (6,910) | — | (6,910) | — | |||||||||||||||||||
Debt repayments - Permian Transmission Term Loan | (3,827) | (2,601) | (7,621) | (5,120) | |||||||||||||||||||
Borrowings on ABL Facility | — | 35,000 | — | 35,000 | |||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Gathering services and related fees | $ | 45,213 | $ | 57,086 | $ | 107,198 | $ | 114,457 | |||||||||||||||
Natural gas, NGLs and condensate sales | 47,959 | 36,082 | 97,051 | 85,245 | |||||||||||||||||||
Other revenues | 8,143 | 4,725 | 15,937 | 10,690 | |||||||||||||||||||
Total revenues | 101,315 | 97,893 | 220,186 | 210,392 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of natural gas and NGLs | 29,619 | 19,975 | 59,801 | 50,857 | |||||||||||||||||||
Operation and maintenance | 23,440 | 25,158 | 48,452 | 49,130 | |||||||||||||||||||
General and administrative | 14,164 | 10,812 | 28,949 | 20,799 | |||||||||||||||||||
Depreciation and amortization | 23,917 | 30,132 | 51,784 | 59,956 | |||||||||||||||||||
Transaction costs | 3,271 | 480 | 11,062 | 782 | |||||||||||||||||||
Acquisition integration costs | — | 723 | 40 | 2,225 | |||||||||||||||||||
(Gain) loss on asset sales, net | 34 | (75) | 7 | (143) | |||||||||||||||||||
Long-lived asset impairment | 20 | 455 | 67,936 | 455 | |||||||||||||||||||
Total costs and expenses | 94,465 | 87,660 | 268,031 | 184,061 | |||||||||||||||||||
Other income (expense), net | 2,131 | 1,006 | 2,118 | 1,062 | |||||||||||||||||||
Gain on interest rate swaps | 920 | 3,268 | 3,510 | 1,995 | |||||||||||||||||||
Gain (loss) on sale of business | (2,192) | (54) | 84,010 | (36) | |||||||||||||||||||
Gain on sale of Ohio Gathering | — | — | 126,261 | — | |||||||||||||||||||
Interest expense | (31,457) | (35,175) | (69,303) | (69,398) | |||||||||||||||||||
Loss on early extinguishment of debt | (4,964) | — | (4,964) | — | |||||||||||||||||||
Income (loss) before income taxes and equity method investment income | (28,712) | (20,722) | 93,787 | (40,046) | |||||||||||||||||||
Income tax benefit | 654 | — | 444 | 252 | |||||||||||||||||||
Income from equity method investees | 4,280 | 7,182 | 14,918 | 12,091 | |||||||||||||||||||
Net income (loss) | $ | (23,778) | $ | (13,540) | $ | 109,149 | $ | (27,703) | |||||||||||||||
Volume throughput (1): | |||||||||||||||||||||||
Aggregate average daily throughput - natural gas (MMcf/d) | 716 | 1,207 | 1,023 | 1,197 | |||||||||||||||||||
Aggregate average daily throughput - liquids (Mbbl/d) | 75 | 71 | 75 | 73 |
Northeast | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | Percentage Change | 2024 | 2023 | Percentage Change | ||||||||||||||||||||||||||||||
Average daily throughput (MMcf/d) | 95 | 629 | * | 404 | 610 | * | |||||||||||||||||||||||||||||
Average daily throughput (MMcf/d) (Ohio Gathering) | — | 781 | * | 425 | 709 | * |
Northeast | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | Percentage Change | 2024 | 2023 | Percentage Change | ||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Gathering services and related fees | $ | 1,998 | $ | 12,805 | (84)% | $ | 18,851 | $ | 25,560 | (26)% | |||||||||||||||||||||||||
Total revenues | 1,998 | 12,805 | (84)% | 18,851 | 25,560 | (26)% | |||||||||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||
Operation and maintenance | 366 | 2,025 | (82%) | 2,259 | 4,110 | (45%) | |||||||||||||||||||||||||||||
General and administrative | 19 | 192 | (90%) | 220 | 402 | (45%) | |||||||||||||||||||||||||||||
Depreciation and amortization | — | 4,431 | (100)% | 4,248 | 8,884 | (52)% | |||||||||||||||||||||||||||||
Gain on asset sales, net | (21) | (7) | 200% | (21) | (7) | 200% | |||||||||||||||||||||||||||||
Long-lived asset impairment | — | — | * | 67,916 | — | * | |||||||||||||||||||||||||||||
Total costs and expenses | 364 | 6,641 | (95%) | 74,622 | 13,389 | * | |||||||||||||||||||||||||||||
Add: | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | — | 4,431 | 4,248 | 8,884 | |||||||||||||||||||||||||||||||
Adjustments related to capital reimbursement activity | 20 | (21) | — | (41) | |||||||||||||||||||||||||||||||
Gain on asset sales, net | (21) | (7) | (21) | (7) | |||||||||||||||||||||||||||||||
Long-lived asset impairment | — | — | 67,916 | — | |||||||||||||||||||||||||||||||
Proportional adjusted EBITDA for Ohio Gathering (1) | — | 9,505 | (100)% | 14,282 | 16,919 | (16)% | |||||||||||||||||||||||||||||
Other | (20) | 129 | (20) | 129 | |||||||||||||||||||||||||||||||
Segment adjusted EBITDA (2) | $ | 1,613 | $ | 20,201 | (92)% | $ | 30,634 | $ | 38,055 | (20)% |
Rockies | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | Percentage Change | 2024 | 2023 | Percentage Change | ||||||||||||||||||||||||||||||
Aggregate average daily throughput - natural gas (MMcf/d) | 130 | 99 | 31% | 127 | 104 | 22% | |||||||||||||||||||||||||||||
Aggregate average daily throughput - liquids (Mbbl/d) | 75 | 71 | 6% | 75 | 73 | 3% |
Rockies | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | Percentage Change | 2024 | 2023 | Percentage Change | ||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Gathering services and related fees | $ | 16,323 | $ | 14,909 | 9% | $ | 32,839 | $ | 30,212 | 9% | |||||||||||||||||||||||||
Natural gas, NGLs and condensate sales | 47,214 | 34,575 | 37% | 95,184 | 81,904 | 16% | |||||||||||||||||||||||||||||
Other revenues | 3,321 | 725 | 358% | 7,429 | 3,344 | 122% | |||||||||||||||||||||||||||||
Total revenues | 66,858 | 50,209 | 33% | 135,452 | 115,460 | 17% | |||||||||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||
Cost of natural gas and NGLs | 29,302 | 19,476 | 50% | 59,110 | 49,284 | 20% | |||||||||||||||||||||||||||||
Operation and maintenance | 12,059 | 12,176 | (1%) | 25,071 | 24,245 | 3% | |||||||||||||||||||||||||||||
General and administrative | 1,051 | 1,068 | (2%) | 2,482 | 1,741 | 43% | |||||||||||||||||||||||||||||
Depreciation and amortization | 9,090 | 8,635 | 5% | 18,035 | 17,013 | 6% | |||||||||||||||||||||||||||||
Integration costs | — | 51 | (100%) | — | 462 | (100%) | |||||||||||||||||||||||||||||
(Gain) loss on asset sales, net | 55 | (54) | (202%) | 36 | (111) | (132%) | |||||||||||||||||||||||||||||
Long-lived asset impairment | 20 | 455 | (96%) | 20 | 455 | (96%) | |||||||||||||||||||||||||||||
Total costs and expenses | 51,577 | 41,807 | 23% | 104,754 | 93,089 | 13% | |||||||||||||||||||||||||||||
Add: | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 9,090 | 8,635 | 18,035 | 17,013 | |||||||||||||||||||||||||||||||
Integration costs | — | 51 | — | 462 | |||||||||||||||||||||||||||||||
Adjustments related to capital reimbursement activity | (1,588) | (875) | (3,057) | (471) | |||||||||||||||||||||||||||||||
(Gain) loss on asset sales, net | 55 | (54) | 36 | (111) | |||||||||||||||||||||||||||||||
Long-lived asset impairment | 20 | 455 | 20 | 455 | |||||||||||||||||||||||||||||||
Other | — | 244 | — | 269 | |||||||||||||||||||||||||||||||
Segment adjusted EBITDA (1) | $ | 22,858 | $ | 16,858 | 36% | $ | 45,732 | $ | 39,988 | 14% |
Permian | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | Percentage Change | 2024 | 2023 | Percentage Change | ||||||||||||||||||||||||||||||
Average daily throughput (MMcf/d) (Double E) | 549 | 243 | 126% | 508 | 254 | 100% |
(Amounts in MMBTU/day) | Weighted average MVC quantities for the year ended December 31, | ||||
2024 | 1,008,587 | ||||
2025 | 1,068,630 | ||||
2026 | 1,115,000 | ||||
2027 | 1,115,000 | ||||
2028 | 1,115,000 | ||||
2029 | 1,115,000 | ||||
2030 | 1,115,000 | ||||
2031 | 1,009,521 | ||||
2032 | 240,000 | ||||
2033 | 240,000 | ||||
2034 | 105,753 | ||||
2035 | 9,863 |
Permian | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | Percentage Change | 2024 | 2023 | Percentage Change | ||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Other revenues | $ | 911 | $ | 892 | 2% | $ | 1,821 | $ | 1,785 | 2% | |||||||||||||||||||||||||
Total revenues | 911 | 892 | 2% | 1,821 | 1,785 | 2% | |||||||||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||
General and administrative | 57 | 116 | (51)% | 93 | 160 | (42)% | |||||||||||||||||||||||||||||
Transaction costs | — | 75 | * | — | 75 | * | |||||||||||||||||||||||||||||
Total costs and expenses | 57 | 191 | (70)% | 93 | 235 | (60)% | |||||||||||||||||||||||||||||
Add: | |||||||||||||||||||||||||||||||||||
Transaction costs | — | 75 | — | 75 | |||||||||||||||||||||||||||||||
Proportional adjusted EBITDA for Double E | 6,843 | 4,594 | 49% | 13,234 | 8,818 | 50% | |||||||||||||||||||||||||||||
Segment adjusted EBITDA (1) | $ | 7,697 | $ | 5,370 | 43% | $ | 14,962 | $ | 10,443 | 43% |
Piceance | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | Percentage Change | 2024 | 2023 | Percentage Change | ||||||||||||||||||||||||||||||
Aggregate average daily throughput (MMcf/d) | 289 | 297 | (3%) | 301 | 292 | 3% |
Piceance | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | Percentage Change | 2024 | 2023 | Percentage Change | ||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Gathering services and related fees | $ | 18,063 | $ | 20,014 | (10%) | $ | 38,450 | $ | 39,133 | (2%) | |||||||||||||||||||||||||
Natural gas, NGLs and condensate sales | 666 | 1,335 | (50)% | 1,614 | 2,976 | (46)% | |||||||||||||||||||||||||||||
Other revenues | 1,234 | 1,373 | (10)% | 2,479 | 2,799 | (11)% | |||||||||||||||||||||||||||||
Total revenues | 19,963 | 22,722 | (12%) | 42,543 | 44,908 | (5%) | |||||||||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||
Cost of natural gas and NGLs | 302 | 499 | (39)% | 676 | 1,573 | (57)% | |||||||||||||||||||||||||||||
Operation and maintenance | 5,752 | 6,427 | (11)% | 11,424 | 12,176 | (6)% | |||||||||||||||||||||||||||||
General and administrative | 307 | 279 | 10% | 613 | 518 | 18% | |||||||||||||||||||||||||||||
Depreciation and amortization | 10,529 | 12,898 | (18%) | 20,997 | 25,779 | (19%) | |||||||||||||||||||||||||||||
Gain on asset sales, net | — | — | * | (8) | (4) | 100% | |||||||||||||||||||||||||||||
Total costs and expenses | 16,890 | 20,103 | (16)% | 33,702 | 40,042 | (16)% | |||||||||||||||||||||||||||||
Add: | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 10,529 | 12,898 | 20,997 | 25,779 | |||||||||||||||||||||||||||||||
Adjustments related to capital reimbursement activity | (808) | (1,258) | (1,913) | (2,503) | |||||||||||||||||||||||||||||||
Gain on asset sales, net | — | — | (8) | (4) | |||||||||||||||||||||||||||||||
Other | 54 | 106 | 164 | 210 | |||||||||||||||||||||||||||||||
Segment adjusted EBITDA (1) | $ | 12,848 | $ | 14,365 | (11%) | $ | 28,081 | $ | 28,348 | (1%) |
Barnett | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | Percentage Change | 2024 | 2023 | Percentage Change | ||||||||||||||||||||||||||||||
Average daily throughput (MMcf/d) | 202 | 182 | 11% | 191 | 191 | —% |
Barnett | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | Percentage Change | 2024 | 2023 | Percentage Change | ||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Gathering services and related fees | $ | 8,829 | $ | 9,358 | (6%) | $ | 17,058 | $ | 19,552 | (13%) | |||||||||||||||||||||||||
Natural gas, NGLs and condensate sales | 79 | 172 | (54%) | 253 | 365 | (31%) | |||||||||||||||||||||||||||||
Other revenues (1) | 2,026 | 1,736 | 17% | 3,483 | 2,800 | 24% | |||||||||||||||||||||||||||||
Total revenues | 10,934 | 11,266 | (3%) | 20,794 | 22,717 | (8%) | |||||||||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||
Operation and maintenance | 5,060 | 4,561 | 11% | 9,436 | 8,630 | 9% | |||||||||||||||||||||||||||||
General and administrative | 355 | 328 | 8% | 646 | 593 | 9% | |||||||||||||||||||||||||||||
Depreciation and amortization | 3,820 | 3,798 | 1% | 7,640 | 7,603 | —% | |||||||||||||||||||||||||||||
Gain on asset sales, net | — | (14) | (100%) | — | (14) | (100%) | |||||||||||||||||||||||||||||
Total costs and expenses | 9,235 | 8,673 | 6% | 17,722 | 16,812 | 5% | |||||||||||||||||||||||||||||
Add: | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 4,054 | 4,033 | 8,109 | 8,072 | |||||||||||||||||||||||||||||||
Adjustments related to capital reimbursement activity | (333) | (328) | (661) | (652) | |||||||||||||||||||||||||||||||
Gain on asset sales, net | — | (14) | — | (14) | |||||||||||||||||||||||||||||||
Other | — | 985 | — | 985 | |||||||||||||||||||||||||||||||
Segment adjusted EBITDA (2) | $ | 5,420 | $ | 7,269 | (25)% | $ | 10,520 | $ | 14,296 | (26)% |
Corporate and Other | |||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | Percentage Change | 2024 | 2023 | Percentage Change | ||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||
General and administrative | $ | 12,375 | $ | 8,829 | 40% | $ | 24,895 | $ | 17,385 | 43% | |||||||||||||||||||||||||
Transaction costs | 3,271 | 405 | * | 11,062 | 707 | * | |||||||||||||||||||||||||||||
Interest expense | 31,457 | 35,175 | (11)% | 69,303 | 69,398 | —% |
Six Months Ended June 30, | |||||||||||
2024 | 2023 | ||||||||||
(In thousands) | |||||||||||
Net cash provided by operating activities | $ | 30,973 | $ | 51,640 | |||||||
Net cash provided by (used in) investing activities | 672,038 | (38,217) | |||||||||
Net cash used in financing activities | (559,440) | (12,077) | |||||||||
Net change in cash, cash equivalents and restricted cash | $ | 143,571 | $ | 1,346 |
June 30, 2024 | |||||||||||
SMLP | Obligor Group | ||||||||||
(In thousands) | |||||||||||
Assets | |||||||||||
Current assets | $ | 2,495 | $ | 215,781 | |||||||
Noncurrent assets | 10,234 | 1,488,737 | |||||||||
Liabilities | |||||||||||
Current liabilities | $ | 15,815 | $ | 132,410 | |||||||
Noncurrent liabilities | 1,228 | 794,587 |
December 31, 2023 | |||||||||||
SMLP | Obligor Group | ||||||||||
(In thousands) | |||||||||||
Assets | |||||||||||
Current assets | $ | 2,993 | $ | 93,035 | |||||||
Noncurrent assets | 9,801 | 2,069,149 | |||||||||
Liabilities | |||||||||||
Current liabilities | $ | 10,395 | $ | 104,694 | |||||||
Noncurrent liabilities | 2,054 | 1,383,704 |
Six Months Ended June 30, 2024 | |||||||||||
SMLP | Obligor Group | ||||||||||
(In thousands) | |||||||||||
Total revenues | $ | — | $ | 214,370 | |||||||
Total costs and expenses | 11,808 | 252,331 | |||||||||
Income (loss) before income taxes and income from equity method investees | (11,808) | 106,703 | |||||||||
Income from equity method investees | — | — | |||||||||
Net income (loss) | $ | (11,365) | $ | 113,742 |
Year Ended December 31, 2023 | |||||||||||
SMLP | Obligor Group | ||||||||||
(In thousands) | |||||||||||
Total revenues | $ | — | $ | 451,032 | |||||||
Total costs and expenses | 3,882 | 373,245 | |||||||||
Loss before income taxes and income from equity method investees | (3,661) | (60,615) | |||||||||
Income from equity method investees | — | 22,922 | |||||||||
Net loss | $ | (3,983) | $ | (37,693) |
Exhibit number | Description | |||||||
+ | ||||||||
+ | ||||||||
+ | ||||||||
101.INS | * | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||||
101.SCH | * | Inline XBRL Taxonomy Extension Schema | ||||||
101.CAL | * | Inline XBRL Taxonomy Extension Calculation Linkbase | ||||||
101.DEF | * | Inline XBRL Taxonomy Extension Definition Linkbase | ||||||
101.LAB | * | Inline XBRL Taxonomy Extension Label Linkbase | ||||||
101.PRE | * | Inline XBRL Taxonomy Extension Presentation Linkbase | ||||||
104 | * | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
Summit Midstream Partners, LP | |||||
(Registrant) | |||||
By: Summit Midstream GP, LLC (its General Partner) | |||||
August 9, 2024 | /s/ WILLIAM J. MAULT | ||||
William J. Mault, Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Date: | August 9, 2024 | /s/ Heath Deneke | |||||||||
Heath Deneke President, Chief Executive Officer and Director of Summit Midstream GP, LLC (the general partner of Summit Midstream Partners, LP) |
Date: | August 9, 2024 | /s/ William J. Mault | |||||||||
William J. Mault Executive Vice President and Chief Financial Officer of Summit Midstream GP, LLC (the general partner of Summit Midstream Partners, LP) |
/s/ Heath Deneke | ||||||||
Name: | Heath Deneke | |||||||
Title: | President, Chief Executive Officer and Director of Summit Midstream GP, LLC (the general partner of Summit Midstream Partners, LP) | |||||||
Date: | August 9, 2024 |
/s/ William J. Mault | ||||||||
Name: | William J. Mault | |||||||
Title: | Executive Vice President and Chief Financial Officer of Summit Midstream GP, LLC (the general partner of Summit Midstream Partners, LP) | |||||||
Date: | August 9, 2024 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Partners' Capital | ||
Common limited partner capital, issued (in shares) | 10,648,685 | 10,376,189 |
Common limited partner capital, outstanding (in shares) | 10,648,685 | 10,376,189 |
Subsidiary Series A Preferred Units | ||
Preferred units, issued (in shares) | 93,039,000 | 93,039,000 |
Series A Preferred Units Outstanding (in shares) | 93,039,000 | 93,039,000 |
Series A Preferred Units | ||
Partners' Capital | ||
Preferred units, issued (in shares) | 65,508 | 65,508 |
Preferred units, outstanding (in shares) | 65,508 | 65,508 |
ORGANIZATION, BUSINESS OPERATIONS AND PRESENTATION AND CONSOLIDATION |
6 Months Ended |
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Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION, BUSINESS OPERATIONS AND PRESENTATION AND CONSOLIDATION | 1. ORGANIZATION, BUSINESS OPERATIONS AND PRESENTATION AND CONSOLIDATION Organization. Summit Midstream Partners, LP (including its subsidiaries, collectively “SMLP” or the “Partnership”) is a Delaware limited partnership that was formed in May 2012 and began operations in October 2012. SMLP is a value-oriented limited partnership focused on developing, owning and operating midstream energy infrastructure assets that are strategically located in unconventional resource basins, primarily shale formations, in the continental United States. The Partnership’s business activities are primarily conducted through various operating subsidiaries, each of which is owned or controlled by its wholly owned subsidiary holding company, Summit Holdings, a Delaware limited liability company. Business Operations. The Partnership provides natural gas gathering, compression, treating and processing services as well as crude oil and produced water gathering services pursuant to primarily long-term, fee-based agreements with its customers. In addition to these services, the Partnership also provides freshwater delivery services pursuant to short-term agreements with customers. The Partnership’s results are primarily driven by the volumes of natural gas that it gathers, compresses, treats and/or processes as well as by the volumes of crude oil and produced water that it gathers. As of June 30, 2024, other than the Partnership’s investment in Double E, all of its business activities are conducted through wholly owned operating subsidiaries. Presentation and Consolidation. The Partnership prepares its condensed consolidated financial statements in accordance with GAAP as established by the FASB and pursuant to the rules and regulations of the SEC pertaining to interim financial information. The unaudited condensed consolidated financial statements contained in this report include all normal and recurring material adjustments that, in the opinion of management, are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented herein. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and related notes that are included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2023. The Partnership makes estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet dates, including fair value measurements, the reported amounts of revenues and expenses and the disclosure of commitments and contingencies. Although management believes these estimates are reasonable, actual results could differ from its estimates. The unaudited condensed consolidated financial statements include the assets, liabilities and results of operations of SMLP and its subsidiaries. All intercompany transactions among the consolidated entities have been eliminated in consolidation. Comprehensive income or loss is the same as net income or loss for all periods presented.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED ACCOUNTING STANDARDS APPLICABLE TO THE PARTNERSHIP |
6 Months Ended |
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Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED ACCOUNTING STANDARDS APPLICABLE TO THE PARTNERSHIP | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED ACCOUNTING STANDARDS APPLICABLE TO THE PARTNERSHIP There have been no changes to the Partnership’s significant accounting policies since December 31, 2023. Accounting standards recently implemented. ASU No. 2020-06 Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815–40) (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in GAAP. The ASU’s amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The provisions of ASU 2020-06 did not have a material impact on the Partnership’s condensed consolidated financial statements and disclosures. New accounting standards not yet implemented. ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 enhances disclosures on reportable segments and provides additional detailed information about significant segment expenses. The guidance in ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Partnership continues to assess the impact of the new guidance, but does not expect the provisions of ASU 2023-07 will have a material impact on its consolidated financial statements and disclosures.
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DIVESTITURES |
6 Months Ended |
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Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DIVESTITURES | 3. DIVESTITURES Summit Utica Sale. On March 22, 2024, the Partnership completed the disposition of Summit Utica, LLC (“Summit Utica”) to a subsidiary of MPLX LP (“MPLX”) for a cash sale price of $625.0 million, subject to customary post-closing adjustments (the “Utica Sale”). Summit Utica was the owner of (i) approximately 36% of the issued and outstanding equity interests in OGC, (ii) approximately 38% of the issued and outstanding equity interests in OCC, together with OGC, Ohio Gathering and (iii) midstream assets located in the Utica Shale. Ohio Gathering was the owner of a natural gas gathering system and condensate stabilization facility located in Belmont and Monroe counties in the Utica Shale in southeastern Ohio. During the quarterly period ended March 31, 2024, the Partnership recognized a total gain on the disposition of Summit Utica of $212.5 million based on total cash proceeds received of $625.0 million and net assets sold of $412.5 million. A portion of the cash proceeds was used to reduce amounts outstanding under the ABL Facility and pay the costs and expenses in connection with the Asset Sale Offer (as defined below) (see Note 8 - Debt, for additional information) and are subject to final working capital adjustments. The $625.0 million sale price did not discretely list values for either OGC, OCC or the Partnership’s midstream assets located in the Utica Shale. Using fair value methods allowed by GAAP, the Partnership derived a preliminary fair value estimate for the disposed assets and then determined the appropriate gain recognition amount for each disposal to include in its unaudited condensed consolidated financial statements. The estimated fair values were determined utilizing a discounted cash flow technique based on estimated revenues, costs, capital expenditures and an appropriate discount rate. Given the unobservable nature of the inputs, the fair value measurement is deemed to use Level 3 inputs. These fair value estimates are preliminary, and subject to change and such changes could be material. Based on these preliminary fair values, the Partnership recognized a gain on the disposition of the Utica midstream business of $85.6 million, which is recorded within gain on sale of business in the unaudited condensed consolidated statements of operations, and a gain of $126.3 million related to the disposition of Ohio Gathering, which is recorded within gain on sale of Ohio Gathering in the unaudited condensed consolidated statements of operations. Mountaineer Midstream System. On May 1, 2024, the Partnership completed the sale of its Mountaineer Midstream system, to Antero Midstream LLC for a cash sale price of $70.0 million, subject to customary post-closing adjustments (the “Mountaineer Transaction”). Mountaineer Midstream was the owner of midstream assets located in the Marcellus Shale. Prior to closing the Mountaineer Transaction, the Partnership sold related compression assets located in the Marcellus Shale to a compression service provider for cash consideration of approximately $5 million in April 2024. During the three months ended March 31, 2024, the Partnership recognized an impairment of $68 million in connection with the Mountaineer Transaction and the sale of compression assets based on their estimated fair value and net assets of approximately $143 million.
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REVENUE |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | 4. REVENUE The following table presents estimated revenue, as of June 30, 2024, expected to be recognized during the remainder of 2024 and over the remaining contract period related to performance obligations that are unsatisfied and are comprised of estimated MVC shortfall payments.
Revenue by category. In the following tables, revenue is disaggregated by geographic area and major products and services. For more detailed information about reportable segments, see Note 15 – Segment Information.
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PROPERTY, PLANT AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | 5. PROPERTY, PLANT AND EQUIPMENT Details on the Partnership’s property, plant and equipment follow.
Depreciation expense and capitalized interest for the Partnership follow.
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EQUITY METHOD INVESTMENTS |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY METHOD INVESTMENTS | 6. EQUITY METHOD INVESTMENTS As of June 30, 2024, the Partnership has an equity method investment in Double E, the balance of which is included in the Investment in equity method investees caption on the unaudited condensed consolidated balance sheets. On March 22, 2024, in connection with the Utica Sale, the Partnership sold its investment in Ohio Gathering and recognized an estimated $126.3 million gain, which is recorded within Gain on sale of Ohio Gathering within the unaudited condensed consolidated statements of operations. See Note 3 - Divestitures for additional information. Details of the Partnership’s equity method investments follow.
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DEFERRED REVENUE |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEFERRED REVENUE | 7. DEFERRED REVENUE The balances in deferred revenue as of June 30, 2024 and December 31, 2023 are primarily related to contributions in aid of construction which will be recognized as revenue over the life of the contract. An update of current deferred revenue follows.
An update of noncurrent deferred revenue follows.
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DEBT |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | 8. DEBT Debt for the Partnership at June 30, 2024 and December 31, 2023, follows:
ABL Facility. On November 2, 2021, the Partnership, the Partnership’s subsidiary, Summit Holdings, and certain subsidiaries of Summit Holdings party thereto entered into a first-lien, senior secured credit facility, consisting of a $400.0 million asset-based revolving credit facility (the “ABL Facility”), subject to a borrowing base comprised of a percentage of eligible accounts receivable of Summit Holdings and its subsidiaries that guarantee the ABL Facility (collectively, the “ABL Facility Subsidiary Guarantors”) and a percentage of eligible above-ground fixed assets including eligible compression units, processing plants, compression stations and related equipment of Summit Holdings and the ABL Facility Subsidiary Guarantors. As of June 30, 2024, the most recent borrowing base determination of eligible assets totaled $632.1 million, an amount greater than the $400.0 million of aggregate lending commitments. As of June 30, 2024, the ABL Facility will mature on May 1, 2026; provided that if the outstanding amount of the 2025 Senior Notes (or any permitted refinancing indebtedness in respect thereof that has a final maturity, scheduled amortization or any other scheduled repayment, mandatory prepayment, mandatory redemption or sinking fund obligation prior to the date that is 120 days after the Termination Date (as defined in the ABL Agreement)) on such date equals or exceeds $50.0 million, then the ABL Facility will mature on December 13, 2024. As of June 30, 2024, the outstanding balance of the 2025 Senior Notes was $49.8 million. As of June 30, 2024, the available borrowing capacity of the ABL Facility totaled $371.7 million after giving effect to the issuance of $4.3 million in outstanding but undrawn irrevocable standby letters of credit and $24.0 million of commitment reserves. In connection with the closing of the Utica Sale, the ABL Facility was amended to, among other things, (i) permit the Utica Sale, (ii) amend the change of control provision and certain other provisions to permit certain structural changes in connection with a conversion to a C-corporation and (iii) amend the Interest Coverage Ratio (as defined in the ABL Agreement) covenant such that the Interest Coverage Ratio as of the last day of any fiscal quarter must be less than (a) for any fiscal quarter ending on or before December 31, 2024, (x) if no loans under the Credit Agreement are outstanding and unrestricted cash exceeds $200.0 million on such date, 1.50:1.00 and (y) if any loans under the Credit Agreement are outstanding or unrestricted cash is less than such threshold on such date, 1.75:1.00 and (b) for any fiscal quarter ending after December 31, 2024, 1.90:1.00. The ABL Facility also requires that Summit Holdings not permit the First Lien Net Leverage Ratio (as defined in the ABL Agreement) as of the last day of any fiscal quarter to be greater than 2.50:1.00. The Partnership is in compliance with the financial covenants of the ABL Facility. A portion of the proceeds from the Utica Sale were used to repay all amounts outstanding under the ABL Facility. As of June 30, 2024, there were no amounts outstanding under the ABL Facility. For additional information, see Note 16 – Subsequent Events. Permian Transmission Credit Facilities. On March 8, 2021, the Partnership’s unrestricted subsidiary, Summit Permian Transmission, entered into a Credit Agreement which allows for $175.0 million of senior secured credit facilities (the “Permian Transmission Credit Facilities”), including a $160.0 million Term Loan Facility and a $15.0 million working capital facility. The Permian Transmission Credit Facilities can be used to finance Summit Permian Transmission’s capital calls associated with its investment in Double E, debt service and other general corporate purposes. Unexpended proceeds from draws on the Permian Transmission Credit Facilities are classified as restricted cash on the accompanying unaudited condensed consolidated balance sheets. As of June 30, 2024, the applicable margin under adjusted term SOFR borrowings was 2.475%, the average interest rate was 7.79% and the unused portion of the Permian Transmission Credit Facilities totaled $4.5 million, subject to a commitment fee of 0.7% after giving effect to the issuance of $10.5 million in outstanding but undrawn irrevocable standby letters of credit. Summit Permian Transmission, LLC entered into interest rate hedges with notional amounts representing approximately 90% of the Permian Term Loan facility at a fixed SOFR rate of 1.23%. The Partnership is in compliance with the financial covenants of the Permian Transmission Credit Facilities. Permian Transmission Term Loan. In accordance with the terms of the Permian Transmission Credit Facilities, in January 2022, the Permian Term Loan Facility was converted into a Term Loan (the “Permian Transmission Term Loan”). The Permian Transmission Term Loan is due January 2028. As of June 30, 2024, the applicable margin under adjusted term SOFR borrowings was 2.475% and the average interest rate was 7.79%. The Partnership is in compliance with the financial covenants governing the Permian Transmission Term Loan. In accordance with the terms of the Permian Transmission Term Loan, Summit Permian Transmission is required to make mandatory principal repayments. Below is a summary of the remaining mandatory principal repayments as of June 30, 2024:
2026 Secured Notes. In 2021, the Co-Issuers issued $700.0 million of 8.500% Senior Secured Second Lien Notes due 2026 to eligible purchasers pursuant to Rule 144A and Regulation S of the Securities Act, at a price of 98.5% of their face value. Additionally, in November 2022, in connection with the 2022 DJ Acquisitions, the Co-Issuers issued an additional $85.0 million of 2026 Secured Notes at a price of 99.26% of their face value. The 2026 Secured Notes will pay interest semi-annually on April 15 and October 15 of each year, commencing on April 15, 2022 and are jointly and severally guaranteed, on a senior second-priority secured basis (subject to permitted liens), by the Partnership and each restricted subsidiary of the Partnership (other than the Co-Issuers) that is an obligor under the ABL Agreement, or under the Co-Issuers’ 2025 Senior Notes on the issue date of the 2026 Secured Notes. The 2026 Secured Notes are effectively subordinated to any of our or the guarantors’ current and future secured first lien indebtedness, including indebtedness incurred under the ABL Facility, to the extent of the value of the collateral securing such indebtedness, and our and the guarantors’ current and future debt that is secured by liens on assets other than the collateral, to the extent of the value of such assets. The 2026 Secured Notes are structurally subordinated to all indebtedness and other liabilities of our subsidiaries that do not guarantee the 2026 Secured Notes (including, but not limited to, the Permian Transmission Credit Facilities and the Subsidiary Series A Preferred Units). The 2026 Secured Notes are effectively equal to our and the guarantors’ obligations under any future second lien indebtedness and effectively senior to all of our future junior lien indebtedness and existing and future unsecured indebtedness, including our outstanding senior unsecured notes, to the extent of the value of the collateral, and senior to any of our future subordinated indebtedness. The 2026 Secured Notes will mature on October 15, 2026. On and after October 15, 2023, the Co-Issuers may redeem all or part of the 2026 Secured Notes at redemption prices (expressed as percentages of principal amount) equal to: (a) 104.250% for the twelve-month period beginning October 15, 2023; (b) 102.125% for the twelve-month period beginning October 15, 2024; and (c) 100.000% for the twelve-month period beginning on October 15, 2025 and at any time thereafter, in each case plus accrued and unpaid interest, if any, to, but not including the redemption date. The Partnership is in compliance with the covenants governing its 2026 Secured Notes. Starting in the first quarter of 2023 with respect to the fiscal year ended 2022, and continuing annually through the fiscal year ended 2025, the Partnership is required under the terms of the 2026 Secured Notes Indenture to, if it has Excess Cash Flow (as defined in the 2026 Secured Notes Indenture), and subject to its ability to make such an offer under the ABL Facility, offer to purchase an amount of the 2026 Secured Notes, at 100% of the principal amount plus accrued and unpaid interest, equal to 100% of the Excess Cash Flow generated in the prior year. Excess Cash Flow is generally defined as consolidated cash flow minus the sum of capital expenditures and cash payments in respect of permitted investments and permitted restricted payments. Generally, if the Partnership does not offer to purchase designated annual amounts of its 2026 Secured Notes or reduce its first lien capacity under the 2026 Secured Notes Indenture per annum from 2023 through 2025, the interest rate on the 2026 Secured Notes is subject to certain rate escalations. Per the terms of the 2026 Secured Notes Indenture, the designated amounts are to offer to purchase $50.0 million aggregate principal amount of the 2026 Secured Notes by April 1, 2023, otherwise the interest rate shall automatically increase by 50 basis points per annum; $100.0 million aggregate principal amount of the 2026 Secured Notes by April 1, 2024, otherwise the interest rate shall automatically increase by 100 basis points per annum (minus any amount previously increased); and $200.0 million aggregate principal amount of the 2026 Secured Notes by April 1, 2025, otherwise the interest rate shall automatically increase by 200 basis points per annum (minus any amount previously increased). Based on the amount of our Excess Cash Flow for the fiscal year ended 2023, on March 27, 2024, the Partnership commenced a cash tender offer to purchase up to $19.3 million aggregate principal amount of the outstanding 2026 Secured Notes at 100% of the principal amount plus accrued and unpaid interest. The cash flow offer expired on April 24, 2024 with $13.6 million tendered and validly accepted and fully discharged as of June 30, 2024 (the “Excess Cash Flow Offer”). As of April 1, 2024, the Partnership had not made offers to purchase in the required amount of $100.0 million and the interest rate on the 2026 Secured Notes increased an incremental 50 basis points to 9.50% effective on such date. On May 7, 2024, the Co-Issuers commenced a cash tender offer to purchase up to $215.0 million of the outstanding 2026 Secured Notes (the “Asset Sale Offer”). The Asset Sale Offer expired on June 5, 2024 with $6.9 million of the 2026 Secured Notes tendered and validly accepted and fully discharged as of June 30, 2024. To the extent the Partnership makes an offer to purchase, and the offer is not fully accepted by the holders of the 2026 Secured Notes, the Partnership may use any remaining amount not accepted for any purpose not prohibited by the 2026 Secured Notes Indenture or the ABL Facility. For additional information, see Note 16 – Subsequent Events. 2026 Unsecured Notes. In November 2023, the Co-Issuers issued a total of $209.5 million aggregate principal amount of 2026 Unsecured Notes in exchange for $180.0 million aggregate principal amount of the 2025 Senior Notes and $29.5 million in cash. The cash raised was used to repurchase $29.7 million aggregate principal amount of the remaining 2025 Senior Notes that were not exchanged. The Partnership paid interest on the 2026 Unsecured Notes semi-annually in cash in arrears on April 15 and October 15 of each year. On June 7, 2024, the Co-Issuers delivered a redemption notice with respect to all $209.5 million of the outstanding 2026 Unsecured Notes. On June 24, 2024, the 2026 Unsecured Notes were fully repaid and discharged. As of June 30, 2024, no amounts of the 2026 Unsecured Notes remained outstanding. 2025 Senior Notes. In February 2017, the Co-Issuers co-issued the 2025 Senior Notes. The Partnership pays interest on the 2025 Senior Notes semi-annually in cash in arrears on April 15 and October 15 of each year. The 2025 Senior Notes are senior, unsecured obligations and rank equally in right of payment with all of the Partnership’s existing and future senior obligations. The 2025 Senior Notes are effectively subordinated in right of payment to all of the Partnership’s secured indebtedness, to the extent of the collateral securing such indebtedness including indebtedness incurred under the ABL Facility and the 2026 Secured Notes. The Co-Issuers have the right to redeem all or part of the 2025 Senior Notes at a redemption price of 100.00%, plus accrued and unpaid interest, if any, to, but not including the redemption date. As discussed above, in November, 2023, the Partnership exchanged $180.0 million aggregate principal amount of the 2025 Senior Notes and repurchased $29.7 million aggregate principal amount of the remaining 2025 Senior Notes that were not exchanged. The Partnership is in compliance with the covenants of the 2025 Senior Notes. The 2025 Senior Notes mature on April 15, 2025. For additional information, see Note 16 – Subsequent Events.
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FINANCIAL INSTRUMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS | 9. FINANCIAL INSTRUMENTS Fair Value. A summary of the estimated fair value of our debt financial instruments follows.
(1) Excludes applicable unamortized debt issuance costs and debt discounts. The carrying values on the balance sheets of the ABL Facility and Permian Transmission Term Loan represent their fair value due to their floating interest rates. The fair values of the 2026 Unsecured Notes, 2026 Secured Notes and 2025 Senior Notes are based on an average of nonbinding broker quotes as of June 30, 2024 and December 31, 2023. The use of different market assumptions or valuation methodologies may have a material effect on their estimated fair value of the Senior Notes. Deferred earn-out. The Partnership’s deferred earn-out liability was settled in full during the quarterly period ended June 30, 2024. As of December 31, 2023, the estimated fair value of the deferred earn-out liability was $5.1 million, and was estimated using a discounted cash flow technique based on estimated future freshwater deliveries and appropriate discount rates. Given the unobservable nature of the inputs, the fair value measurement of the deferred earn-out is deemed to use Level 3 inputs. Interest Rate Swaps. In connection with the Permian Transmission Term Loan, the Partnership entered into amortizing interest rate swap agreements. As of June 30, 2024 and December 31, 2023, the outstanding notional amounts of interest rate swaps were $123.5 million and $130.4 million, respectively. These interest rate swaps manage exposure to variability in expected cash flows attributable to interest rate risk. Interest rate swaps convert a portion of the Partnership’s variable rate debt to fixed rate debt. The Partnership chooses counterparties for its derivative instruments that it believes are creditworthy at the time the transactions are entered into, and the Partnership actively monitors the creditworthiness where applicable. However, there can be no assurance that a counterparty will be able to meet its obligations to the Partnership. The Partnership presents its derivative positions on a gross basis and does not net the asset and liability positions. As of June 30, 2024 and December 31, 2023, the Partnership’s interest rate swap agreements had a fair value of $12.8 million and $11.9 million, respectively, and are recorded within other noncurrent assets within the unaudited condensed consolidated balance sheets. The derivative instruments’ fair value are determined using level 2 inputs from the fair value hierarchy. For the three and six months ended June 30, 2024, the Partnership recorded a gain on interest rate swaps of $0.9 million and $3.5 million, respectively.
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PARTNERS' CAPITAL AND MEZZANINE CAPITAL |
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PARTNERS' CAPITAL AND MEZZANINE CAPITAL | 10. PARTNERS' CAPITAL AND MEZZANINE CAPITAL Common Units. An update on the number of common units is as follows for the period from December 31, 2023 to June 30, 2024.
Series A Preferred Units. As of June 30, 2024, the Partnership had 65,508 Series A Preferred Units outstanding and $39.6 million of accrued and unpaid distributions on its Series A Preferred Units. Subsidiary Series A Preferred Units. The Partnership records its Subsidiary Series A Preferred Units at fair value upon issuance, net of issuance costs, and subsequently records an effective interest method accretion amount each reporting period to accrete the carrying value to a most probable redemption value that is based on a predetermined internal rate of return measure. Net income (loss) attributable to common limited partners includes adjustments for PIK distributions and redemption accretion. As of June 30, 2024, the Partnership had 93,039 Subsidiary Series A Preferred Units issued and outstanding. If the Subsidiary Series A Preferred Units were redeemed on June 30, 2024, the redemption amount would be $128.8 million when considering the applicable multiple of invested capital metric and make-whole amount provisions contained in the Amended and Restated Limited Liability Company Agreement of Permian Holdco. The following table shows the change in the Partnership’s Subsidiary Series A Preferred Unit balance from January 1, 2024 to June 30, 2024, net of $1.4 million and $1.7 million of unamortized issuance costs at June 30, 2024 and December 31, 2023, respectively:
Cash Distribution Policy. The Partnership suspended its cash distributions to holders of its common units and Series A Preferred Units, commencing with respect to the quarter ended March 31, 2020. Upon the resumption of distributions, the Partnership Agreement would have required that it distribute all available cash, subject to reserves established by its General Partner, within 45 days after the end of each quarter to unitholders of record on the applicable record date. The amount of distributions paid under this policy was subject to fluctuations based on the amount of cash the Partnership generated from its business and the decision to make any distribution was determined by the General Partner, taking into consideration the terms of the Partnership Agreement. There were no distributions paid during the three and six months ended June 30, 2024 or during the twelve months ended December 31, 2023. In connection with the consummation of the Corporate Reorganization (as defined herein), the Partnership Agreement was amended to, among other things, reflect that all of the issued and outstanding limited partnership interests of the Partnership are held by Summit Midstream Corporation. For information on the Corporate Reorganization, see Note 16 – Subsequent Events.
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EARNINGS PER UNIT |
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EARNINGS PER UNIT | 11. EARNINGS PER UNIT The following table details the components of EPU.
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SUPPLEMENTAL CASH FLOW INFORMATION |
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SUPPLEMENTAL CASH FLOW INFORMATION | 12. SUPPLEMENTAL CASH FLOW INFORMATION
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UNIT-BASED AND NONCASH COMPENSATION |
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Share-Based Payment Arrangement [Abstract] | |
UNIT-BASED AND NONCASH COMPENSATION | 13. UNIT-BASED AND NONCASH COMPENSATION SMLP Long-Term Incentive Plan. The Partnership’s 2022 Long-Term Incentive Plan (“SMLP LTIP”) provides for equity awards to eligible officers, employees, consultants and directors of the Partnership, thereby linking the recipients’ compensation directly to SMLP’s performance. Significant items to note: •For the six-month period ended June 30, 2024, the Partnership granted 230,815 time-based phantom units and associated distribution equivalent rights to employees in connection with the Partnership’s annual incentive compensation award cycle. The grant date fair value of these awards totaled $3.7 million and the awards vest ratably over a 3-year period. •For the six-month period ended June 30, 2024, the Partnership granted 122,867 performance-based phantom units and associated distribution equivalent rights to certain members of management in connection with the Partnership’s annual incentive compensation award cycle. The grant date fair value of these awards totaled $2.4 million and the awards vest at the end of three years. •For the six-month period ended June 30, 2024, the Partnership issued 39,486 common units to the Partnership’s six independent directors in connection with their annual compensation plan. The grant date fair value of these awards totaled $0.6 million and became fully vested at the grant date. •On May 16, 2024, the Board of Directors of the Partnership approved the First Amendment to the SMLP LTIP, which increased the number of common units that may be delivered with respect to awards granted under the SMLP LTIP by 750,000 common units. As of June 30, 2024, approximately 0.9 million common units remained available for future issuance under the SMLP LTIP, which includes the impact of 0.7 million granted but unvested phantom units.
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COMMITMENTS AND CONTINGENCIES |
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COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES Environmental Matters. Although the Partnership believes that it is in material compliance with applicable environmental regulations, the risk of environmental remediation costs and liabilities are inherent in pipeline ownership and operation. Furthermore, the Partnership can provide no assurances that significant environmental remediation costs and liabilities will not be incurred in the future. The Partnership is currently not aware of any material contingent liabilities that exist with respect to environmental matters, except as noted below. As of June 30, 2024, the Partnership has recognized (i) a current liability for remediation effort expenditures expected to be incurred within the next 12 months and (ii) a noncurrent liability for estimated remediation expenditures expected to be incurred subsequent to June 30, 2025. Each of these amounts represent the Partnership’s best estimate for costs expected to be incurred. Neither of these amounts have been discounted to their present value. An update of the Partnership’s undiscounted accrued environmental remediation is as follows and is primarily related to the 2015 Blacktail Release and other environmental remediation activities, as detailed below.
In 2015, the Partnership learned of the rupture of a four-inch produced water gathering pipeline on the Meadowlark Midstream system near Williston, North Dakota (“2015 Blacktail Release”). On August 4, 2021, subsidiaries of the Partnership entered into the following agreements to resolve the U.S. federal and North Dakota state governments’ environmental claims with respect to the 2015 Blacktail Release: (i) a Consent Decree with the U.S. Department of Justice (“DOJ”), the U.S. Environmental Protection Agency (“EPA”), and the State of North Dakota (“Consent Decree”); (ii) a Plea Agreement with the United States (“Plea Agreement”); and (iii) a Consent Agreement with the North Dakota Industrial Commission (“Consent Agreement” together with the Consent Decree and Plea Agreement, the “Global Settlement”). As of June 30, 2024 and December 31, 2023, the accrued loss liability for the 2015 Blacktail Release was $21.7 million and are recorded within Other noncurrent liabilities and Accrued settlement payable within the unaudited condensed consolidated balance sheets. Key terms of the Global Settlement included (i) payment of penalties and fines totaling $36.3 million, consisting of $1.25 million in natural resource damages payable to federal and state governments, $25.0 million payable to the federal government over 5 years, and $10.0 million payable to state governments over, for the federal and state civil amounts, six years and, for the federal criminal amounts, five years, with interest applied to unpaid amounts accruing at, for the federal and state civil amounts, a fixed rate of 3.25% and, for the federal criminal amounts, a variable rate set by statute, and of which $6.7 million is expected to be paid within the next twelve months; (ii) continuation of remediation efforts at the site of the 2015 Blacktail Release; (iii) other injunctive relief, including, but not limited to, control room management, environmental management system audit, training, and reporting; (iv) guilty pleas by defendant Summit Midstream Partners, LLC (the “Defendant”) for (a) one charge of negligent discharge of a harmful quantity of oil and (b) one charge of knowing failure to immediately report a discharge of oil; and (v) organizational probation for a minimum period of three years from sentencing on December 6, 2021, including payment in full of certain components of the fines and penalty amounts. The agreements comprising the Global Settlement were subject to the approval of the U.S. District Court for the District of North Dakota (the “U.S. District Court”). The U.S. District Court entered an order making the civil components of the Global Settlement effective on September 28, 2021 and accepted the sentencing in the Plea Agreement on December 6, 2021, completing approval of the Global Settlement. Subsidiaries of the Partnership are also participating in two proceedings before the EPA as a result of the Plea Agreement becoming effective. Following the U.S. District Court’s entering judgment on Defendant subsidiary’s guilty plea to one count of negligent discharge of produced water in violation of the Clean Water Act, Defendant subsidiary was statutorily debarred by operation of law pursuant to 33 U.S.C. § 1368(a) to participate in federal awards performed at the “violating facility,” which EPA determined to be the Marmon subsystem of the produced water gathering system in North Dakota. The scope and effect of the debarment as defined do not materially affect our operations. Defendant has submitted a petition for reinstatement, which was denied by the EPA’s suspension and debarment office (“SDO”) on July 11, 2022. The SDO determined that the term of probation in the Plea Agreement was the appropriate period of time to demonstrate Defendant subsidiary’s change of corporate attitude, policies, practices, and procedures. The Partnership and certain subsidiaries have also received a show cause notice from the EPA requesting us to “show cause” why SDO should not issue a Notice of Proposed Debarment to the Defendant subsidiary and certain affiliates under 2 C.F.R. § 180.800(d), to which the Partnership has responded, and in which proceeding no further developments have occurred. Legal Proceedings. The Partnership is involved in various litigation and administrative proceedings arising in the ordinary course of business. In the opinion of management, any liabilities, which include insured claims, would not individually or in the aggregate have a material adverse effect on the Partnership's financial position or results of operations.
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SEGMENT INFORMATION |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | 15. SEGMENT INFORMATION As of June 30, 2024, the Partnership’s reportable segments are: •Rockies – Includes the Partnership’s wholly owned midstream assets located in the Williston Basin and the DJ Basin. •Permian – Includes the Partnership’s equity method investment in Double E. •Northeast – Includes the operations of the Partnership’s wholly owned midstream assets located in the Marcellus shale play and its wholly owned midstream assets located in the Utica shale play together with its equity method investment in Ohio Gathering that is focused on the Utica Shale. For additional information regarding the Utica Sale and Mountaineer Transaction, see Note 3 - Divestitures regarding the disposition of Northeast assets. •Piceance – Includes the Partnership’s wholly owned midstream assets located in the Piceance Basin. •Barnett – Includes the Partnership’s wholly owned midstream assets located in the Barnett Shale. Corporate and Other represents those results that: (i) are not specifically attributable to a reportable segment; (ii) are not individually reportable; or (iii) have not been allocated to our reportable segments, including certain general and administrative expense items, transaction costs, acquisition integration costs and interest expense. Assets by reportable segment follow.
Segment adjusted EBITDA by reportable segment follows.
(1) Segment adjusted EBITDA is a non-GAAP financial measure. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations” for additional information. A reconciliation of income or loss before income taxes and income from equity method investees to total of reportable segments' measures of profit follows.
________ (1) Includes the amortization expense associated with our favorable gas gathering contracts as reported in other revenues. (2) The Partnership records financial results of its investment in Ohio Gathering on a one-month lag and is based on the financial information available to us during the reporting period. With the divestiture of Ohio Gathering in March 2024, proportional adjusted EBITDA includes financial results from December 1, 2023 through March 22, 2024.
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SUBSEQUENT EVENTS |
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
SUBSEQUENT EVENTS | 16. SUBSEQUENT EVENTS Corporate Reorganization. On August 1, 2024, following unitholder approval at the Partnership’s Special Meeting of Unitholders on July 18, 2024, the Partnership consummated a previously announced transaction that resulted in the Partnership becoming a wholly owned subsidiary of a newly formed Delaware corporation, Summit Midstream Corporation (the “Corporate Reorganization”). Upon the consummation of the Corporate Reorganization, each outstanding common unit of the Partnership was converted into the right to receive 1.000 shares of common stock of Summit Midstream Corporation and each outstanding Series A Preferred Unit was converted into the right to receive 1.000 shares of Series A Floating Rate Cumulative Redeemable Perpetual Preferred Stock (“Series A Preferred Stock”) of Summit Midstream Corporation, with the liquidation preference of each share of Series A Preferred Stock initially equal to $1,000 and the Certificate of Designation of Series A Floating Rate Cumulative Redeemable Perpetual Preferred Stock of Summit Midstream Corporation (the “Series A Certificate of Designation”) deeming all accumulated and unpaid distributions on the Series A Preferred Units to be Series A Unpaid Cash Dividends (as defined in the Series A Certificate of Designation) per share of Series A Preferred Stock, which constituted all consideration to be paid in respect to such Series A Preferred Units, and any rights to accumulated and unpaid distributions on such Series A Preferred Units were discharged. Refinancing Transactions. 2029 Notes. On July 26, 2024, Summit Holdings issued $575.0 million aggregate principal amount of 8.625% Senior Secured Second Lien Notes due 2029 (the “2029 Notes”). The 2029 Notes are guaranteed on a senior second-priority basis by Summit Midstream Corporation and certain of Summit Midstream Corporation’s existing and future subsidiaries and are secured on a second-priority basis by substantially the same collateral that is pledged for the benefit of the lenders under the Amended and Restated ABL Facility (as defined below). The 2029 Notes mature on October 31, 2029 and have interest payable semi-annually in arrears on each February 15 and August 15, commencing on February 15, 2025. At any time prior to July 31, 2026, Summit Holdings may on any one or more occasions redeem up to 40% of the aggregate principal amount of the 2029 Notes at a redemption rate of 108.625% of the principal amount plus accrued and unpaid interest, if any, to, but not including, the redemption date, in an amount not greater than the net cash proceeds of one or more equity offerings. At any time before July 31, 2026, Summit Holdings may also redeem the 2029 Notes, in whole or in part, at a price equal to 100% of their principal amount, plus a make-whole premium, together with accrued and unpaid interest to, but not including, the redemption date. Thereafter, Summit Holdings may redeem all or a portion of the 2029 Notes in whole at any time or in part from time to time at the following redemption prices (expressed as percentages of the principal amount) plus accrued and unpaid interest if redeemed during the periods indicated below:
2026 Secured Notes Tender Offer and Redemption. On July 26, 2024, concurrently with closing the offering of 2029 Notes, Summit Holdings and Finance Corp. consummated a cash tender offer to purchase any and all of the outstanding 2026 Secured Notes (the “2026 Secured Notes Tender Offer”). Summit Holdings and Finance Corp. accepted for payment and made payment for $649.8 million aggregate principal amount of the 2026 Secured Notes validly tendered in the 2026 Secured Notes Tender Offer. On July 26, 2024, concurrently with consummation of the 2026 Secured Notes Tender Offer, Summit Holdings and Finance Corp. delivered notice of redemption to holders of 2026 Secured Notes for the redemption of all $114.7 million aggregate principal amount of 2026 Secured Notes not purchased in the 2026 Secured Notes Tender Offer, at a price equal to 102.125% of the principal amount thereof, plus accrued and unpaid interest to the redemption date (which is expected to be October 15, 2024). On July 26, 2024, concurrently with delivery of notice of redemption, Summit Holdings and Finance Corp. irrevocably deposited $121.2 million in aggregate principal amount of non-callable United States Treasury securities, which includes amounts for principal, interest, and premium with the trustee to satisfy and discharge the 2026 Secured Notes until redeemed on October 15, 2024 with the funds deposited with the trustee. 2025 Senior Notes Redemption. On July 17, 2024, Summit Holdings and Finance Corp. delivered conditional notice of redemption to holders of 2025 Senior Notes for the redemption of all $49.8 million aggregate principal amount of outstanding 2025 Senior Notes, at a price equal to 100.000% of the principal amount thereof, plus accrued and unpaid interest to the redemption date, conditioned on closing of the offering of 2029 Notes. On July 26, 2024, concurrently with closing of the offering of 2029 Notes, Summit Holdings and Finance Corp. irrevocably deposited $50.6 million in aggregate principal amount of non-callable United States Treasury securities, which includes amounts for principal and interest with the trustee to satisfy and discharge the 2025 Senior Notes until redeemed with the funds deposited with the trustee. Amended and Restated ABL Facility. Concurrently with the issuance of the 2029 Notes, on July 26, 2024, Summit Holdings, as borrower, amended and restated its existing first-lien, senior secured credit agreement, with the Partnership, the subsidiaries party thereto, Bank of America, N.A., as agent, and the several lenders and other agents party thereto, consisting of a $500.0 million asset-based revolving credit facility (the “Amended and Restated ABL Facility”), subject to a borrowing base comprised of a percentage of eligible accounts receivable of Summit Holdings and its subsidiaries that guarantee the Amended and Restated ABL Facility (collectively, the “Amended and Restated ABL Facility Subsidiary Guarantors”) and a percentage of eligible above-ground fixed assets including eligible compression units, processing plants, compression stations and related equipment of Summit Holdings and the Amended and Restated ABL Facility Subsidiary Guarantors. Summit Holdings amended and restated its existing ABL Facility pursuant to that certain Amended and Restated Loan and Security Agreement (the “New ABL Agreement”), dated as of July 26, 2024. The Amended and Restated ABL Facility will mature on the earliest of (a) July 26, 2029, (b) July 31, 2029 if either (i) the outstanding amount of the 2029 Notes (or any refinancing debt permitted under the Amended and Restated ABL Facility in respect thereof that has a final maturity date, scheduled amortization or any other scheduled repayment, mandatory prepayment, mandatory redemption or sinking fund obligation prior to the date that is 91 days after the Amended and Restated ABL Termination Date (as defined below) (provided, that the terms of such permitted refinancing debt may (x) require the payment of interest from time to time and (y) include customary mandatory redemptions, prepayments or offers to purchase with proceeds of asset sales or upon the occurrence of a change of control)) on such date equals or exceeds $50.0 million or (ii) the outstanding amount of such debt described in clause (i) above on such date is less than $50.0 million and Liquidity (as defined in the New ABL Agreement) at any time on or after such date is less than the sum of (A) such outstanding amount and (B) the greater of (x) 10% of the aggregate Commitments (as defined in the New ABL Agreement) then in effect and (y) $50.0 million (and, for the avoidance of doubt, once the Amended and Restated ABL Termination Date occurs it may not be unwound as a result of Liquidity increasing on a subsequent date), and (c) any date on which the aggregate Commitments terminate thereunder (such date, the “Amended and Restated ABL Termination Date”). Borrowings under the Amended and Restated ABL Facility will bear interest, at the election of Summit Holdings, at a SOFR-based rate or a base rate, in each case, plus an applicable borrowing margin based on our Total Net Leverage Ratio (as defined in the New ABL Agreement consistent with the ABL Facility). The applicable margin for base rate loans will vary from 1.50% to 2.25% and the applicable margin for SOFR-based loans will vary from 2.50% to 3.25%, in each case, depending on our Total Net Leverage Ratio. The Amended and Restated ABL Facility (together with certain Secured Bank Product Obligations (as defined in the New ABL Agreement)) will be jointly and severally guaranteed, on a senior first-priority secured basis (subject to permitted liens), by the Partnership, Summit Holdings and each of the Amended and Restated ABL Facility Subsidiary Guarantors. The Amended and Restated ABL Facility restricts, among other things, Summit Holdings’ and its Restricted Subsidiaries’ (as defined in the New ABL Agreement) ability and the ability of certain of their subsidiaries to: (i) incur additional debt or issue preferred stock; (ii) make distributions or repurchase equity; (iii) make payments on or redeem junior lien, unsecured or subordinated indebtedness; (iv) create liens or other encumbrances; (v) make investments, loans or other guarantees; (vi) engage in transactions with affiliates; and (viii) make acquisitions or merge or consolidate with another entity. These covenants are subject both to a number of important exceptions and qualifications. The Amended and Restated ABL Facility requires that Summit Holdings not permit (i) the First Lien Net Leverage Ratio (as defined in the New ABL Agreement) as of the last day of any fiscal quarter to be greater than 2.50:1.00, or (ii) the Interest Coverage Ratio (as defined in the New ABL Agreement) as of the last day of any fiscal quarter to be less than 2.00:1.00. The Amended and Restated ABL Facility contains certain events of default customary for instruments of this type. In the case of an event of default arising from certain events of bankruptcy, insolvency or reorganization with respect to Summit Holdings, all outstanding Obligations (as defined in the New ABL Agreement) will become due and payable immediately without further action or notice and all commitments under the Amended and Restated ABL Facility will terminate. Pursuant to the New ABL Agreement, the Obligations (as defined in the New ABL Agreement) are (or, subject to post-closing periods for certain types of collateral, will be) generally secured by a first priority lien on and security interest in (subject to permitted liens), subject to certain exclusions and limitations set forth in the New ABL Agreement, (i) substantially all of the personal property of Summit Holdings and the Amended and Restated ABL Facility Subsidiary Guarantors, (ii) all equity interests in Summit Holdings and certain other entities, all debt securities and certain rights related to the foregoing, in each case, owned by the Partnership, (iii) Closing Date Gathering Station Real Property and Closing Date Pipeline Systems Real Property (each, as defined in the New ABL Agreement) and certain other material real property interests (including improvements thereon) of Summit Holdings and the Amended and Restated ABL Facility Subsidiary Guarantors as provided in the New ABL Agreement and (iv) all proceeds of the foregoing collateral. Intercreditor Agreement. On November 2, 2021, Summit Holdings and the other guarantors party thereto entered into an Intercreditor Agreement (as amended, restated, supplemented or otherwise modified, the “Intercreditor Agreement”) with Bank of America, N.A., as first lien representative and collateral agent for the initial first lien claimholders, and Regions Bank, as initial second lien representative for the initial second lien claimholders and collateral agent for the initial second lien claimholders, which was reaffirmed by Bank of America, N.A., in connection with its entry into the Amended and Restated ABL Facility, and which Regions Bank joined as an additional second lien representative for the additional second lien claimholders and additional second lien collateral agent for the additional second lien claimholders, in each case, substantially concurrently with the entry into the Amended and Restated ABL Facility. The Intercreditor Agreement establishes (i) a first-priority lien (subject to permitted liens) status for the liens on the collateral securing the ABL Facility (and will apply to the Amended and Restated ABL Facility) and any additional first-lien indebtedness and (ii) a junior priority lien (subject to permitted liens) status for the liens on the collateral securing the 2026 Secured Notes and any additional second-lien indebtedness (including the 2029 Notes).
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED ACCOUNTING STANDARDS APPLICABLE TO THE PARTNERSHIP (Policies) |
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Accounting Policies [Abstract] | |
Basis of Presentation | The Partnership prepares its condensed consolidated financial statements in accordance with GAAP as established by the FASB and pursuant to the rules and regulations of the SEC pertaining to interim financial information. The unaudited condensed consolidated financial statements contained in this report include all normal and recurring material adjustments that, in the opinion of management, are necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented herein. |
Use of Estimates | The Partnership makes estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet dates, including fair value measurements, the reported amounts of revenues and expenses and the disclosure of commitments and contingencies. Although management believes these estimates are reasonable, actual results could differ from its estimates.
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Consolidation | The unaudited condensed consolidated financial statements include the assets, liabilities and results of operations of SMLP and its subsidiaries. All intercompany transactions among the consolidated entities have been eliminated in consolidation. Comprehensive income or loss is the same as net income or loss for all periods presented.
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Accounting standards recently implemented and New accounting standards not yet implemented | Accounting standards recently implemented. ASU No. 2020-06 Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815–40) (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in GAAP. The ASU’s amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. The provisions of ASU 2020-06 did not have a material impact on the Partnership’s condensed consolidated financial statements and disclosures. New accounting standards not yet implemented. ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 enhances disclosures on reportable segments and provides additional detailed information about significant segment expenses. The guidance in ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Partnership continues to assess the impact of the new guidance, but does not expect the provisions of ASU 2023-07 will have a material impact on its consolidated financial statements and disclosures.
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REVENUE (Tables) |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Revenue Expected to be Recognized and MVC Shortfall Payments | The following table presents estimated revenue, as of June 30, 2024, expected to be recognized during the remainder of 2024 and over the remaining contract period related to performance obligations that are unsatisfied and are comprised of estimated MVC shortfall payments.
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Schedule of Disaggregated Revenue by Geographic Area and Major Products and Services Reportable Segments | Revenue by category. In the following tables, revenue is disaggregated by geographic area and major products and services. For more detailed information about reportable segments, see Note 15 – Segment Information.
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | Details on the Partnership’s property, plant and equipment follow.
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Schedule Of Depreciation Expense And Capitalized Interest Costs | Depreciation expense and capitalized interest for the Partnership follow.
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EQUITY METHOD INVESTMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Method Investments | Details of the Partnership’s equity method investments follow.
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DEFERRED REVENUE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Contract with Customer, Contract Asset, Contract Liability, and Receivable | An update of current deferred revenue follows.
An update of noncurrent deferred revenue follows.
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DEBT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Debt for the Partnership at June 30, 2024 and December 31, 2023, follows:
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Schedule of Maturities of Long-term Debt | Below is a summary of the remaining mandatory principal repayments as of June 30, 2024:
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FINANCIAL INSTRUMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying and Estimated Fair Values of Debt Instruments | A summary of the estimated fair value of our debt financial instruments follows.
(1) Excludes applicable unamortized debt issuance costs and debt discounts.
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PARTNERS' CAPITAL AND MEZZANINE CAPITAL (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule Of Partner Units Activity | An update on the number of common units is as follows for the period from December 31, 2023 to June 30, 2024.
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Schedule of Consolidation, Parent Ownership Interest, Effects of Changes, Net | The following table shows the change in the Partnership’s Subsidiary Series A Preferred Unit balance from January 1, 2024 to June 30, 2024, net of $1.4 million and $1.7 million of unamortized issuance costs at June 30, 2024 and December 31, 2023, respectively:
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EARNINGS PER UNIT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table details the components of EPU.
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SUPPLEMENTAL CASH FLOW INFORMATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures |
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COMMITMENTS AND CONTINGENCIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Accrued Environmental Remediation | An update of the Partnership’s undiscounted accrued environmental remediation is as follows and is primarily related to the 2015 Blacktail Release and other environmental remediation activities, as detailed below.
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SEGMENT INFORMATION (Tables) |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Assets from Segment to Consolidated | Assets by reportable segment follow.
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Schedule of Reconciliation of Net Income to Adjusted EBITDA | Segment adjusted EBITDA by reportable segment follows.
(1) Segment adjusted EBITDA is a non-GAAP financial measure. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations” for additional information. A reconciliation of income or loss before income taxes and income from equity method investees to total of reportable segments' measures of profit follows.
________ (1) Includes the amortization expense associated with our favorable gas gathering contracts as reported in other revenues. (2) The Partnership records financial results of its investment in Ohio Gathering on a one-month lag and is based on the financial information available to us during the reporting period. With the divestiture of Ohio Gathering in March 2024, proportional adjusted EBITDA includes financial results from December 1, 2023 through March 22, 2024.
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SUBSEQUENT EVENTS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Redemption Price | Thereafter, Summit Holdings may redeem all or a portion of the 2029 Notes in whole at any time or in part from time to time at the following redemption prices (expressed as percentages of the principal amount) plus accrued and unpaid interest if redeemed during the periods indicated below:
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PROPERTY, PLANT AND EQUIPMENT - Schedule of Property, Plant, and Equipment, Net (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total | $ 2,051,124 | $ 2,468,607 |
Less: accumulated depreciation | (684,602) | (770,022) |
Property, plant and equipment, net | 1,366,522 | 1,698,585 |
Gathering and processing systems and related equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,932,418 | 2,335,980 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total | 42,338 | 56,064 |
Land and line fill | ||
Property, Plant and Equipment [Line Items] | ||
Total | 11,534 | 11,534 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 64,834 | $ 65,029 |
PROPERTY, PLANT AND EQUIPMENT - Schedule Of Depreciation Expense And Capitalized Interest Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
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Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 20,357 | $ 23,285 | $ 43,928 | $ 46,204 |
Capitalized interest | $ 175 | $ 246 | $ 647 | $ 439 |
EQUITY METHOD INVESTMENTS - Schedule of Equity Method Investments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
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Schedule of Equity Method Investments [Line Items] | |||||
Gain on sale of Ohio Gathering | $ 0 | $ 0 | $ 126,261 | $ 0 | |
Investment in equity method investees | 271,622 | 271,622 | $ 486,434 | ||
Double E | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in equity method investees | 271,622 | 271,622 | 276,221 | ||
Ohio Gathering | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in equity method investees | $ 0 | $ 0 | $ 210,213 |
DEFERRED REVENUE (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2024
USD ($)
| |
Change in Contract with Customer, Liability, Current [Roll Forward] | |
Current deferred revenue, beginning balance | $ 10,196 |
Add: additions | 3,830 |
Less: revenue recognized and other | (5,721) |
Current deferred revenue, ending balance | 8,305 |
Change in Contract with Customer, Liability, Noncurrent [Roll Forward] | |
Noncurrent deferred revenue, beginning balance | 30,085 |
Add: additions | 3,378 |
Less: reclassification to current deferred revenue and other | (3,967) |
Noncurrent deferred revenue, ending balance | $ 29,496 |
DEBT - Schedule of Maturities of Long-term Debt (Details) - Permian Transmission Term Loan: Summit Permian Transmission's variable rate senior secured term loan due January 2028 $ in Thousands |
Jun. 30, 2024
USD ($)
|
---|---|
Debt | |
Amortizing principal repayments | $ 137,225 |
2024 | 7,903 |
2025 | 16,580 |
2026 | 16,967 |
2027 | 17,769 |
2028 | $ 78,006 |
FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
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Concentration Risk [Line Items] | |||||
Gain (loss) on interest rate swaps | $ 920 | $ 3,268 | $ 3,510 | $ 1,995 | |
Interest Rate Swap | |||||
Concentration Risk [Line Items] | |||||
Derivative liability, notional amount | 123,500 | 123,500 | $ 130,400 | ||
Fair value of interest rate swap | 12,800 | 12,800 | 11,900 | ||
Gain (loss) on interest rate swaps | $ 900 | $ 3,500 | |||
Fair Value, Inputs, Level 3 | Sterling DJ | |||||
Concentration Risk [Line Items] | |||||
Deferred earn-out liability | $ 5,100 |
PARTNERS' CAPITAL AND MEZZANINE CAPITAL - Schedule Of Partner Units Activity (Details) - Common Units |
6 Months Ended |
---|---|
Jun. 30, 2024
shares
| |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
Units, beginning balance (in shares) | 10,376,189 |
Common units issued for SMLP LTIP, net (in shares) | 272,496 |
Units, ending balance (in shares) | 10,648,685 |
PARTNERS' CAPITAL AND MEZZANINE CAPITAL - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2024 |
Dec. 31, 2023 |
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Partners Capital [Line Items] | |||
Maximum period following end of quarter to distribute all available cash | 45 days | ||
Series A Preferred Units | |||
Partners Capital [Line Items] | |||
Subsidiary Series A preferred unitholders, outstanding (in shares) | 65,508 | 65,508 | |
Subsidiary Series A Preferred Units | |||
Partners Capital [Line Items] | |||
Preferred units outstanding (in shares) | 93,039,000 | 93,039,000 | |
Preferred units issued (in shares) | 93,039,000 | 93,039,000 | |
Series A Preferred Units | |||
Partners Capital [Line Items] | |||
Accrued and unpaid distributions | $ 39.6 | ||
Redemption amount | 128.8 | ||
Issuance costs | $ 1.4 | $ 1.7 |
PARTNERS' CAPITAL AND MEZZANINE CAPITAL - Schedule of Consolidation, Parent Ownership Interest, Effects of Changes, Net (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Series A Preferred Units | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Redemption accretion, net of issuance cost amortization | $ 7,636 | $ 5,242 |
Series A Preferred Units | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Beginning balance | 124,652 | |
Cash distribution (includes a $1.6 million distribution payable as of June 30, 2024) | (3,256) | |
Ending balance | 129,032 | |
Distribution payable | $ 1,600 |
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
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Supplemental cash flow information: | ||
Cash interest paid | $ 65,807 | $ 62,587 |
Cash paid for taxes | 15 | 15 |
Noncash investing and financing activities: | ||
Capital expenditures in trade accounts payable (period-end accruals) | 8,999 | 8,399 |
Series A Preferred Units | ||
Noncash investing and financing activities: | ||
Accretion of Subsidiary Series A Preferred Units, net of issuance cost amortization | $ 7,636 | $ 5,242 |
UNIT-BASED AND NONCASH COMPENSATION (Details) - SMLP LTIP $ in Millions |
6 Months Ended | |
---|---|---|
May 16, 2024
shares
|
Jun. 30, 2024
USD ($)
director
shares
|
|
Phantom Share Units And Associated Distribution Equivalent Rights | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted units (in shares) | 230,815 | |
Grant date fair value | $ | $ 3.7 | |
Vesting period | 3 years | |
Performance Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted units (in shares) | 122,867 | |
Grant date fair value | $ | $ 2.4 | |
Vesting period | 3 years | |
Common Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value | $ | $ 0.6 | |
Issued units (in shares) | 750,000 | 39,486 |
Number of directors | director | 6 | |
Phantom Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units remaining available (in shares) | 900,000 | |
Unvested phantom units granted (in shares) | 700,000 |
COMMITMENTS AND CONTINGENCIES - Schedule of Accrued Environmental Remediation (Details) - Meadowlark Midstream Gathering System $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2024
USD ($)
| |
Accrual for Environmental Loss Contingencies [Roll Forward] | |
Accrued environmental remediation, beginning balance | $ 2,937 |
Payments made | (598) |
Changes in estimates | 623 |
Accrued environmental remediation, ending balance | $ 2,962 |
SEGMENT INFORMATION - Schedule of Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands |
Jun. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Assets | $ 2,032,938 | $ 2,494,198 |
Reportable Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,876,441 | 2,483,258 |
Reportable Segments | Rockies | ||
Segment Reporting Information [Line Items] | ||
Assets | 905,649 | 904,974 |
Reportable Segments | Permian | ||
Segment Reporting Information [Line Items] | ||
Assets | 289,168 | 291,073 |
Reportable Segments | Northeast | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,343 | 573,663 |
Reportable Segments | Piceance | ||
Segment Reporting Information [Line Items] | ||
Assets | 407,191 | 431,687 |
Reportable Segments | Barnett | ||
Segment Reporting Information [Line Items] | ||
Assets | 272,090 | 281,861 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 156,497 | $ 10,940 |
SEGMENT INFORMATION - Adjusted EBITDA by Reportable Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | $ 50,436 | $ 64,063 | $ 129,929 | $ 131,130 |
Rockies | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 22,858 | 16,858 | 45,732 | 39,988 |
Permian | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 7,697 | 5,370 | 14,962 | 10,443 |
Northeast | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 1,613 | 20,201 | 30,634 | 38,055 |
Piceance | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | 12,848 | 14,365 | 28,081 | 28,348 |
Barnett | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | $ 5,420 | $ 7,269 | $ 10,520 | $ 14,296 |
SEGMENT INFORMATION - Schedule of Reconciliation of Net Loss to Adjusted EBITDA (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
Segment Reporting [Abstract] | ||||
Income (loss) before income taxes and income from equity method investees | $ (28,712) | $ (20,722) | $ 93,787 | $ (40,046) |
Add: | ||||
Corporate and Other expense | 4,391 | 3,606 | 11,397 | 13,069 |
Interest expense | 31,457 | 35,175 | 69,303 | 69,398 |
Depreciation and amortization | 24,152 | 30,366 | 52,254 | 60,425 |
Proportional adjusted EBITDA for equity method investees | 6,842 | 14,100 | 27,517 | 25,738 |
Adjustments related to capital reimbursement activity | (2,728) | (2,481) | (5,651) | (3,667) |
Unit-based and noncash compensation | 2,086 | 1,833 | 4,858 | 3,762 |
(Gain) loss on asset sales, net | 34 | (75) | 7 | (143) |
(Gain) loss on sale of business | (84,010) | 0 | ||
Gain on sale of Ohio Gathering | 0 | 0 | (126,261) | 0 |
Long-lived asset impairments | 20 | 455 | 67,936 | 455 |
Transaction costs and other | 5,738 | 1,752 | 13,828 | 2,103 |
Early extinguishment of debt | 4,964 | 0 | 4,964 | 0 |
Total of reportable segments' measures of profit | $ 50,436 | $ 64,063 | $ 129,929 | $ 131,130 |
SUBSEQUENT EVENTS - Schedule of Redemption Price (Details) - Senior Secured Second Lien Notes, 2029 - Subsequent Event - Summit Holdings And Finance Corporation |
Jul. 30, 2026 |
Jul. 26, 2024 |
---|---|---|
Subsequent Event [Line Items] | ||
Redemption price, expressed as percentage of principal amount | 108.625% | |
Debt Instrument, Redemption, Period One | ||
Subsequent Event [Line Items] | ||
Redemption price, expressed as percentage of principal amount | 104.313% | |
Debt Instrument, Redemption, Period Two | ||
Subsequent Event [Line Items] | ||
Redemption price, expressed as percentage of principal amount | 102.156% | |
Debt Instrument, Redemption, Period After Two | ||
Subsequent Event [Line Items] | ||
Redemption price, expressed as percentage of principal amount | 100.00% |
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