Summit Midstream Secures Additional Double E Commitments and Extends Open Season Amid Strong Shipper Demand
Rhea-AI Summary
Summit Midstream (NYSE: SMC) reported new commercial progress across its Double E Pipeline in the Permian and crude gathering systems in the Williston Basin.
- Three new firm Double E agreements now total 250 MMcf/d, raising contracted capacity to about 1.9 Bcf/d.
- The Double E compression expansion open season is extended to June 30, 2026, with interest potentially exceeding available expansion capacity.
- The compression project would lift Double E capacity ~50% to 2.4 Bcf/d, with FID targeted by end of summer 2026 and an in-service date by end of 2028.
- Summit also signed a new crude gathering agreement in Divide County, North Dakota, covering over 40,000 dedicated acres and 15 planned four-mile laterals by year-end 2026, contributing to more than 240,000 acres of new dedicated footprint in six months.
AI-generated analysis. Not financial advice.
Positive
- Three new Double E firm transportation deals totaling 250 MMcf/d
- Double E contracted firm capacity increased to approximately 1.9 Bcf/d
- Firm option for additional 200 MMcf/d of Double E capacity
- Double E compression expansion targets ~50% capacity increase to 2.4 Bcf/d
- New Divide County crude gathering deal with 40,000-acre dedication
- More than 240,000 acres of new dedicated crude gathering footprint in six months
Negative
- None.
News Market Reaction – SMC
On the day this news was published, SMC gained 0.62%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
SMC was down 2.93% while midstream peers were mixed: KNOP up 0.14%, MMLP up 3.97%, DLNG down 0.66%, IMPP down 3.04%, NFE down 7.77%. No coordinated sector move is indicated.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jun 01 | Stock repurchase plan | Positive | +11.9% | Inaugural $35M buyback authorization signaling capital return and flexibility. |
| May 11 | Q1 2026 earnings | Negative | -0.6% | Net loss with slightly lower Adjusted EBITDA, despite reaffirmed 2026 guidance. |
| Apr 29 | Earnings call notice | Neutral | +2.7% | Scheduling Q1 call and conference appearances; informational timing update only. |
| Mar 31 | Equity private placement | Negative | -1.3% | $42M common equity issuance to an affiliate to reduce debt and fund growth. |
| Mar 16 | Q4 & 2025 results | Neutral | +2.1% | Net loss but detailed 2026 guidance and Double E/Williston contract updates. |
SMC has tended to trade higher on capital return and guidance/growth updates, while equity issuance and some earnings events have seen modest pressure.
Over the past six months, Summit Midstream has focused on balance sheet repair, growth projects, and capital returns. A $42M equity issuance on Mar 31 funded debt reduction and organic growth. Q4 2025 and Q1 2026 results both showed net losses but reiterated 2026 Adjusted EBITDA guidance. On Jun 1, SMC announced a $35M stock repurchase program, which drew a strong positive price reaction. Today’s commercial expansion news fits the ongoing Double E and Williston growth narrative.
Market Pulse Summary
This announcement highlights continued commercial traction on Summit’s key growth platforms. Double E has added 250 MMcf/d of new firm commitments and now has about 1.9 Bcf/d contracted, with a compression expansion targeting up to 2.4 Bcf/d and an in-service date by end of 2028. In the Williston, a new 40,000-acre dedication and 15 new laterals extend the recent expansion of the gathering footprint.
Key Terms
firm transportation agreements financial
open season financial
final investment decision financial
lateral wells technical
gas turbine compressors technical
Federal Energy Regulatory Commission regulatory
AI-generated analysis. Not financial advice.
Highlights
- Executed two new long-term firm transportation agreements totaling 150 MMcf/d, bringing total Double E open season commitments to 250 MMcf/d and total contracted capacity to approximately 1.9 Bcf/d
- Extended Double E open season to June 30, 2026 given significant inbound interest; advanced discussions ongoing with multiple shippers in excess of available expansion capacity
- Expect to FID Double E compression expansion by end of the summer; executed purchase order to secure turbine compressor units to maintain end of 2028 project in-service date
- Executed a new crude gathering agreement in
Divide County, North Dakota with more than 40,000-acre area of dedication; 15 new four-mile lateral well connects expected during fourth quarter 2026
Management Commentary
Heath Deneke, President, Chief Executive Officer and Chairman, commented, "We are very pleased with the progress we are making on obtaining commercial commitments to support the previously announced Double E Compression Expansion project and we remain on track to reach a project FID by the end of this summer. To date, we have executed 250 MMcf/d of long-term binding agreements during the open season with multiple Shippers. We have also entered into a firm option agreement to provide an additional 200 MMcf/d of capacity for a certain Shipper. Additionally, we continue to advance discussions with multiple Shippers, which collectively, have expressed interest well in excess of the 800 to 900 MMcf/d of expansion capacity. As a result, we have extended the open season through June 30 while we continue to work on securing additional binding commitments. The remaining available expansion capacity will be awarded on a first-come, first-served basis to Shippers that execute a binding precedent agreement.
"In the
Double E Pipeline — Compression Expansion Open Season Update
As part of the ongoing binding open season for Double E's Compression Expansion project, we have now executed three long-term firm transportation agreements totaling 250 MMcf/d and we have entered into a firm option agreement for an additional 200 MMcf/d of capacity which may be executed by the Shipper this summer. Additionally, we have received an affirmative FID notice on a processing plant expansion from the Shipper on the previously announced 230 MMcf/d firm transportation agreement. With the 250 MMcf/d of new binding agreements entered into thus far during the open season and the affirmative FID on the previously announced 230 MMcf/d firm transportation agreement, Double E's total contracted firm capacity has increased to approximately 1.9 Bcf/d.
As a result of the ongoing significant level of interest received from prospective Shippers, Double E has extended the binding open season through June 30, 2026. The Company believes the expansion capacity could ultimately be oversubscribed and is awarding available capacity to Shippers that execute binding precedent agreements on a first-come, first-served basis.
Double E's Compression Expansion project would increase the pipeline's capacity by approximately
Summit has executed a new crude oil gathering agreement with a producer in
This agreement is similar in structure to the new crude oil gathering agreement Summit announced in its fourth quarter 2025 earnings results. Taken together, these agreements reflect increasing operator engagement in the northern and western portions of the
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), repurchases of the Company's common stock, 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 U.S. Securities and Exchange Commission 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