Summit Midstream Corporation Announces Final Investment Decision on Double E Pipeline Mainline Compression Expansion

Rhea-AI Summary

Summit Midstream Corporation (NYSE: SMC) announced that Double E Pipeline has reached a final investment decision on its mainline compression expansion after a successful open season and a new long-term, take-or-pay firm transportation agreement for 200 MMcf/d with an investment-grade shipper. The expansion will add about 900 MMcf/d of forward haul capacity to Waha and is expected to enter service in the fourth quarter of 2028. Total contracted firm capacity on Double E is now approximately 2.2 Bcf/d, supported by around 550 MMcf/d of new long-term commitments from the open season.

Summit expects to invest about $100 million, net to its 70% interest, for the compressor station, plant connections and related infrastructure, funded entirely through its existing term loan at Summit Permian Transmission and a now-committed $50 million accordion, giving $100 million of committed financing capacity. The Double E joint venture has ordered long-lead gas turbine compression units, and the project remains subject to FERC and other regulatory approvals. According to Summit, management guidance indicates Permian Segment Adjusted EBITDA could increase from roughly $37 million in 2026 to over $100 million by 2030 when the project is fully subscribed.

Positive

• Final investment decision reached on Double E mainline compression expansion, targeting Q4 2028 in-service
• 200 MMcf/d new long-term take-or-pay agreement with an investment-grade shipper
• Open season secured about 550 MMcf/d of new binding long-term commitments
• Total contracted firm capacity on Double E now about 2.2 Bcf/d
• Expansion adds roughly 900 MMcf/d of forward haul capacity to Waha
• Summit’s net expansion spend of about $100 million fully funded by committed term facilities
• Accordion at Summit Permian Transmission converted to committed, lifting financing capacity to $100 million
• Summit Permian Transmission term facility remains non-recourse to SMC
• Management guidance: Permian Segment Adjusted EBITDA from ~$37m (2026) to >$100m (2030) if fully subscribed

Negative

• Expansion project remains subject to FERC and other regulatory approvals
• About 450 MMcf/d of incremental forward haul expansion capacity not yet contracted

News Explained

The financing for Summit’s expected Double E contributions is non-recourse to SMC; the disclosed $100 million commitment is under the Summit Permian Transmission facility rather than debt recourse at the parent company.

News Market Reaction – SMC

+2.02%

+2.02% Session close to close

In the Aug 31 session, SMC gained 2.02%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The June 8 Double E commitments announcement recorded a 1.2% 24-hour reaction, providing a relevant ...

Analysis

The June 8 Double E commitments announcement recorded a 1.2% 24-hour reaction, providing a relevant platform precedent. The new FID adds financing clarity, while regulatory approvals and subscription execution remain risks.

Key Figures

New firm transportation capacity: 200 MMcf/d Total contracted firm capacity: approximately 2.2 Bcf/d Committed financing capacity: $100 million +5 more

8 metrics

New firm transportation capacity 200 MMcf/d New long-term take-or-pay agreement

Total contracted firm capacity approximately 2.2 Bcf/d Double E Pipeline after the new agreement

Committed financing capacity $100 million Summit Permian Transmission

New long-term commitments 550 MMcf/d Open season commitments underpinning the FID

Summit investment approximately $100 million Net to Summit's 70% interest

Forward haul capacity increase approximately 900 MMcf/d Double E mainline compression expansion

Permian Segment Adjusted EBITDA approximately $37 million 2026 starting level

Permian Segment Adjusted EBITDA over $100 million Expected by 2030 when fully subscribed

Historical Context

5 past events · Latest: Aug 10 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 10	Q2 earnings report	Positive	+9.1%	Reported quarterly profitability, higher EBITDA, and tightened full-year guidance
Jul 30	Earnings call scheduling	Neutral	+1.1%	Scheduled second-quarter results release and conference call
Jun 08	Double E commitments	Positive	+1.2%	Added firm capacity commitments and extended the compression expansion open season
Jun 01	Stock repurchase program	Positive	+11.9%	Authorized a $35 million common-stock repurchase program
May 11	Q1 earnings report	Negative	-0.6%	Reported a quarterly loss while maintaining full-year EBITDA guidance

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Four of five prior events had positive 24-hour reactions, including the June Double E commitments announcement and the Q2 earnings report.

Key Terms

final investment decision, take-or-pay, forward haul capacity, non-recourse, +1 more

5 terms

final investment decision financial

"has concluded a successful open season and reached a final investment decision"

A final investment decision is the point at which a person or organization chooses to move forward with a particular project or purchase after reviewing all the necessary information and options. It is like deciding to buy a house after considering all the costs, benefits, and alternatives. This decision is important because it determines whether and when the investment will be made, impacting future financial plans and outcomes.

take-or-pay financial

"new long-term take-or-pay firm transportation agreement"

A take-or-pay clause is a contract term that requires a buyer to either take delivery of an agreed amount of a product or pay a penalty if they do not. For investors, it matters because it creates predictable revenue for the seller—like a subscription fee that must be paid whether fully used or not—reducing sales volatility but also introducing counterparty risk if the buyer’s ability to pay is uncertain.

forward haul capacity technical

"remaining 450 MMcf/d of incremental forward haul capacity"

Forward haul capacity is the amount of freight space a carrier or logistics network has available to move goods on the outbound leg of a route — from origin toward the next stop or final destination. Investors care about it because it affects a carrier’s ability to generate revenue and match demand: like empty seats on a bus, unused forward haul capacity means lost sales and influences pricing, utilization rates, and operational efficiency.

non-recourse financial

"The Summit Permian Transmission term facility remains non-recourse to SMC."

A non-recourse loan is a type of debt where the lender’s recovery is limited to a specific asset pledged as collateral, and the borrower cannot be personally pursued for any remaining balance if the asset’s value falls short. For investors, non-recourse financing shifts downside risk onto the lender and protects a borrower’s other assets, which can affect a company’s risk profile, borrowing costs, and potential returns — much like insurance that covers only the item left as collateral.

FERC regulatory

"subject to FERC and other customary regulatory approvals"

The Federal Energy Regulatory Commission (FERC) is a U.S. government agency that oversees interstate electricity, natural gas and oil pipeline transmission and related market rules. Think of it as a referee and traffic controller for the energy grid and wholesale markets; its approvals, fines or rule changes can affect how much companies can charge, how projects are built and how profitable energy and utility firms are, making it important for investors watching regulatory risk and revenue drivers.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HOUSTON, Aug. 31, 2026 /PRNewswire/ -- Summit Midstream Corporation (NYSE: SMC) ("Summit", "SMC" or the "Company") announced today that Double E Pipeline, LLC ("Double E") has concluded a successful open season and reached a final investment decision on its previously announced mainline compression expansion project, supported by a new long-term firm transportation agreement with an investment-grade shipper.

Highlights

• Reached a final investment decision on the mainline compression expansion, with an expected in-service date in the fourth quarter of 2028
  
  
• Executed a new long-term take-or-pay firm transportation agreement with an investment-grade shipper for 200 MMcf/d, bringing total contracted firm capacity on Double E to approximately 2.2 Bcf/d
  
  
• Converted the $50 million uncommitted accordion at Summit Permian Transmission to committed, bringing total committed financing capacity to $100 million and fully funding Summit's expected Double E capital contributions
  
  
• Robust future growth opportunities associated with data center developments in Texas and New Mexico and connectivity with additional egress pipelines

Management Commentary

Heath Deneke, President, Chief Executive Officer and Chairman, commented, "Today's announcement is a significant milestone for Summit and Double E and further demonstrates the importance of the pipeline to producers and processors in the Delaware Basin. Double E provides reliable gas transmission service with access to multiple downstream markets, and we continue to expand that connectivity as the basin grows. The strong shipper interest we have seen through the open season reinforces the value of that position and our confidence in the long-term growth opportunity for Double E.

"The open season resulted in 550 MMcf/d of new long-term take-or-pay commitments which underpinned the final investment decision to move forward with the compression expansion and we continue to advance discussions with multiple shippers to subscribe the remaining 450 MMcf/d of incremental forward haul capacity. With these newly signed contracts, we expect to invest approximately $100 million, net to Summit's 70% interest, to install the mainline compression station, incremental plant connections and related infrastructure, all of which will be funded entirely with the previously announced term loan at Summit Permian Transmission and the now-committed $50 million accordion. We continue to see tremendous production growth surrounding our Delaware Basin operating footprint and fully expect to enter into long-term contracts for the remaining expansion capacity in the coming months. When the project is fully subscribed, we expect our Permian Segment Adjusted EBITDA to grow from approximately $37 million in 2026 to over $100 million by 2030."

"As we look into the future for the Double E Pipeline beyond filling the mainline compression expansion capacity to Waha, we are very excited about a new phase of demand-pull growth opportunities that are emerging from data center development in Texas and New Mexico as well as additional egress pipelines that are hungry for enhanced access to Permian gas supply. With our connectivity to numerous gas processing facilities in the basin and the Waha Hub, we are incredibly well positioned to attract those markets to the Double E Pipeline and leverage the bi-directional capability of the system to nearly double the outlook for the business in the years ahead."

Double E Mainline Compression Expansion

The expansion project consists of the installation of a bi-directional mainline compressor station on the Double E system, which will increase the pipeline's forward haul capacity to Waha by approximately 900 MMcf/d. The compression project along with new plant connections and related infrastructure is expected to cost approximately $100 million net to Summit's 70% interest and is expected to be placed in service by the fourth quarter of 2028.

The Double E joint venture has already placed a purchase order for the long-lead gas turbine compression units required for the project, securing manufacturing slots necessary to support the targeted in-service date. The project remains subject to FERC and other customary regulatory approvals.

With the new 200 MMcf/d agreement, Double E has secured approximately 550 MMcf/d of binding long-term take-or-pay commitments through the compression expansion open season. Total contracted firm capacity on the pipeline is now approximately 2.2 Bcf/d, held by a diversified group of primarily investment-grade shippers. Double E continues to advance discussions with additional prospective shippers regarding remaining capacity on the expansion.

Summit Permian Transmission Financing

In connection with the final investment decision, Summit Permian Transmission converted the previously uncommitted $50 million accordion under its existing $440 million senior secured term facility maturing in March 2031 into a committed facility. Combined with the $50 million committed delayed draw term facility established at closing in March 2026, Summit expects to have sufficient commitments to fund all of its expected capital contributions to Double E over the next several years. The Summit Permian Transmission term facility remains non-recourse to SMC.

About Double E Pipeline, LLC

Double E is a 135-mile FERC-regulated interstate natural gas transmission pipeline that commenced operations in November 2021 and provides transportation service from receipt points in the Delaware Basin to various delivery points in and around the Waha Hub in Texas.

Double E is owned by subsidiaries of Summit Midstream Corporation (NYSE: SMC) and ExxonMobil (NYSE: XOM) with an ownership interest of 70% and 30%, respectively. Summit Midstream Permian II, LLC is the operator of Double E.

About Summit Midstream Corporation

SMC is a value-driven corporation focused on developing, owning and operating midstream energy infrastructure assets that are strategically located in the core producing areas of unconventional resource basins, primarily shale formations, in the continental United States. SMC provides natural gas, crude oil and produced water gathering, processing and transportation services pursuant to primarily long-term, fee-based agreements with customers and counterparties in five unconventional resource basins: (i) the Williston Basin, which includes the Bakken and Three Forks shale formations in North Dakota; (ii) the Denver-Julesburg Basin, which includes the Niobrara and Codell shale formations in Colorado and Wyoming; (iii) the Fort Worth Basin, which includes the Barnett Shale formation in Texas; (iv) the Arkoma Basin, which includes the Woodford and Caney shale formations in Oklahoma; and (v) the Piceance Basin, which includes the Mesaverde formation as well as the Mancos and Niobrara shale formations in Colorado. SMC has an equity method investment in Double E Pipeline, LLC, which provides interstate natural gas transportation service from multiple receipt points in the Delaware Basin to various delivery points in and around the Waha Hub in Texas. SMC is headquartered in Houston, Texas.

Forward-Looking Statements

This press release includes certain statements concerning expectations for the future that are forward-looking within the meaning of the federal securities laws. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements and may contain the words "expect," "intend," "plan," "anticipate," "estimate," "believe," "will be," "will continue," "will likely result," and similar expressions, or future conditional verbs such as "may," "will," "should," "would" and "could." In addition, any statement concerning future financial performance (including future revenues, earnings or growth rates), payment of dividends on any series of stock, ongoing business strategies and possible actions taken by SMC or its subsidiaries are also forward-looking statements. Forward-looking statements also contain known and unknown risks and uncertainties (many of which are difficult to predict and beyond management's control) that may cause SMC's actual results in future periods to differ materially from anticipated or projected results. An extensive list of specific material risks and uncertainties affecting SMC is contained in its 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 16, 2026, as amended and updated from time to time. Any forward-looking statements in this press release are made as of the date of this press release and SMC undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.

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SOURCE Summit Midstream Corporation

FAQ

What did Summit Midstream (NYSE: SMC) announce about the Double E Pipeline expansion on August 31, 2026?

Summit Midstream announced a final investment decision for Double E’s mainline compression expansion, backed by new long-term commitments. According to Summit, the project boosts forward haul capacity to Waha by about 900 MMcf/d and targets in-service in the fourth quarter of 2028.

How much new contracted capacity did Summit Midstream secure for Double E Pipeline (SMC) in 2026?

Double E secured about 550 MMcf/d of new binding long-term take-or-pay commitments through its open season. According to Summit, this includes a 200 MMcf/d contract with an investment-grade shipper and lifts total contracted firm capacity on the pipeline to roughly 2.2 Bcf/d.

What is the cost and financing plan for Summit Midstream’s Double E compression expansion (SMC)?

Summit expects to invest about $100 million net to its 70% interest in the expansion. According to Summit, this spending will be fully funded by its existing Summit Permian Transmission term loan and a now-committed $50 million accordion, giving $100 million of committed capacity.

When will the Double E Pipeline mainline compression expansion for Summit Midstream (SMC) be in service?

The Double E mainline compression expansion is expected to be in service by the fourth quarter of 2028. According to Summit, long-lead gas turbine compression units have already been ordered, and the project still requires FERC and other customary regulatory approvals.

How will the Double E expansion affect Summit Midstream’s Permian Segment Adjusted EBITDA (SMC)?

Summit’s management expects Permian Segment Adjusted EBITDA to grow from about $37 million in 2026 to over $100 million by 2030. According to Summit, this guidance assumes the Double E expansion is fully subscribed with long-term contracts over time.

Is all the new Double E Pipeline capacity contracted after Summit Midstream’s 2026 open season (SMC)?

Not all expansion capacity is yet contracted; about 450 MMcf/d remains available. According to Summit, Double E continues discussions with additional prospective shippers to subscribe the remaining incremental forward haul capacity created by the mainline compression project.

What are the key risks or conditions for Summit Midstream’s Double E expansion project (NYSE: SMC)?

Key conditions include obtaining FERC and other customary regulatory approvals before the project enters service. According to Summit, the joint venture has ordered long-lead compression units, but 450 MMcf/d of the new forward haul capacity still awaits binding shipper commitments.