HOUSTON—Deneke J. Heath, Chairman, President, and CEO of Summit Midstream Corp (NASDAQ:NYSE:SMC), recently sold shares of the company in a series of transactions. The sales, conducted under a pre-arranged trading plan, took place over three consecutive days, from December 11 to December 13. The stock has shown remarkable strength this year, with a 100.5% year-to-date return, trading between $15.56 and $40.75 over the past 52 weeks. According to InvestingPro analysis, SMC appears slightly undervalued at current levels.
Heath sold a total of 3,000 shares of common stock, with the transactions priced between $35.95 and $37.09 per share. The total value of these sales amounted to $109,260. Following these transactions, Heath retains ownership of 268,006 shares in the company. InvestingPro rates SMC’s overall financial health as ‘FAIR’, with particularly strong momentum scores.
These sales were executed in compliance with a qualified selling plan under Rule 10b5-1, which allows company insiders to set up a predetermined plan to sell stocks at a later date, thereby helping to avoid concerns about insider trading. For deeper insights into SMC’s valuation and insider trading patterns, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Summit Midstream Corp completed a key transaction that expands its operational capacity. The company finalized a material definitive agreement following the acquisition of Tall Oak Midstream Operating, LLC and its subsidiaries, enhancing its financial structure. This acquisition expands Summit’s operational reach into the Arkoma Basin and includes a $155 million upfront cash payment and approximately 7.5 million shares of Class B common stock.
The company also gained stockholder approval for a significant stock issuance to Tall Oak Midstream Holdings, LLC, involving the issuance of up to 7,471,008 shares of Class B common stock. This decision is part of a compliance measure with the New York Stock Exchange Listed Company Manual Section 312.03.
Summit Midstream has also signed a second supplemental indenture with Regions Bank, providing a guarantee for $575 million in aggregate principal amount of 8.625% Senior Secured Second Lien Notes due in 2029. The company’s total debt stands at $957 million, with an EBITDA of $178.33 million for the last twelve months.
In addition, Summit Midstream Partners, LP has undergone a corporate reorganization, transitioning from a master limited partnership to a C corporation. The company has also launched a tender offer to repurchase up to $215 million of their 8.500% Senior Secured Second Lien Notes due 2026.
Lastly, the company reported strong Q1 results, with a net income of $132.9 million and adjusted EBITDA of $70.1 million. These are the recent developments in the company’s operations and financial status.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
