HOUSTON, Dec. 2, 2024
/PRNewswire/ --Summit Midstream Corporation (NYSE: SMC) ("Summit",
"SMC" or the "Company") announced today that it and its wholly
owned subsidiary, Summit Midstream Partners, LP (the
"Partnership"), received shareholder approval and has completed the
previously announced acquisition of Tall Oak Midstream Operating,
LLC and its subsidiaries (collectively, "Tall Oak" or "Tall Oak
Midstream III") from an affiliate of Tailwater Capital LLC
("Tailwater Capital") for $155
million of cash, 7.5 million common units of the Partnership
and associated 7.5 million shares of SMC Class B Common Stock (the
"Equity Consideration"), and up to $25
million contingent consideration in cash over certain
measurement periods through March 31,
2026. This strategic acquisition marks a significant
milestone in Summit's growth strategy, rebalancing its portfolio to
approximately 50% natural gas-oriented drilling activities and
increasing scale in a credit and value accretive manner. Pro forma
for the transaction, SMC's total leverage ratio, as of September 30, 2024, is approximately 3.8x.
On November 29, 2024, SMC held a
virtual special meeting of its stockholders via live audio webcast
to vote on the proposed equity to be issued for the acquisition
(the "Special Meeting"). Approximately 76.7% of the shares of
common stock entitled to vote as of the record date for the Special
Meeting were represented in person or by proxy at the Special
Meeting, and approximately 99.8% of the total votes cast were in
favor of the proposal.
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),
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 SMC's Quarterly Report on Form 10-Q
for the Quarter ended September 30,
2024 filed with the SEC. 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