Summit Midstream reported higher third-quarter earnings and cash generation, with growth across its Rockies, Mid-Con and Permian-related operations. The company also raised its 2026 Adjusted EBITDA outlook and approved an expansion of its Double E gas pipeline system, citing rising customer demand.
Management pointed to continued producer activity as a source of expected growth. It said Summit currently expects to connect 200 to 250 wells in 2027, with its Rockies and Permian segments expected to be the main drivers of organic growth over the next two to three years.
Key details
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Third-quarter results: Summit posted net income of $15.9 million, Adjusted EBITDA of $70.7 million, distributable cash flow of $32.6 million and free cash flow of $5.2 million. Adjusted EBITDA rose 16% from the second quarter.
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Higher full-year guidance: The company raised its 2026 Adjusted EBITDA forecast to $250 million–$260 million, from $235 million–$255 million. Management attributed the increase to producer activity and growing volumes, and expects year-end 2026 total net leverage of about 3.6 times.
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Double E expansion: Summit reached a final investment decision on the Double E Mainline Compression Expansion, which is intended to support growing Permian Basin demand for in-basin gas transportation. The announcement did not provide the project’s cost or added capacity.
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Record Double E throughput: Volumes on Double E rose 17% from the second quarter to a record 1,002 million cubic feet per day. Summit said it remains on track to secure contracts for the pipeline’s remaining forward-haul capacity by year-end.
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Rockies growth: Rockies Segment Adjusted EBITDA increased 32% from the prior quarter to $40.0 million, alongside a 40% increase in liquids throughput. Fifty-one new wells came online across the Williston and DJ basins during the quarter.
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Mid-Con growth: Mid-Con Segment Adjusted EBITDA rose 7% to $22.8 million. Natural gas throughput also increased 7%, reaching 561 million cubic feet per day.
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Recent operating momentum: Management said new well connections, higher volumes and favorable commodity prices have added roughly $16.5 million to quarterly Adjusted EBITDA since the first quarter—about 30% growth over two quarters.
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2027 activity outlook: Summit said seven rigs are operating behind its systems and it has approximately 140 drilled-but-uncompleted wells. Based on current expectations, the company plans to connect 200 to 250 wells in 2027. Management said Rockies producers have indicated plans to continue increasing activity and volumes into 2028 and beyond.
The quarter’s improvement was driven by higher throughput and new well connections, while the increased guidance reflects management’s expectation that those operating trends will continue. The Double E investment decision is a concrete step to expand capacity for Permian transportation demand; Summit’s stated year-end goal to contract the remaining forward-haul capacity indicates that securing customers is part of that growth plan.