In recent transactions, J. Heath Deneke, the Chairman, President, and CEO of Summit Midstream Corp (NYSE:SMC), sold a total of 2,000 shares of common stock. The sales, which took place on December 4 and 5, 2024, were executed at prices ranging from $37.43 to $37.77 per share, amounting to a total value of $75,200. According to InvestingPro data, SMC's stock has shown remarkable performance, delivering a 110% return over the past year, though the company currently trades near its Fair Value.
These transactions were conducted under a pre-arranged trading plan in compliance with Rule 10b5-1, which allows company insiders to set up a predetermined plan to sell stocks. Following these sales, Deneke holds 274,006 shares of the company. InvestingPro analysis reveals the company maintains a FAIR overall financial health score, despite operating with significant debt. Investors can access detailed insider trading patterns and 12+ additional ProTips through InvestingPro's comprehensive research reports, available for over 1,400 US stocks.
In other recent news, Summit Midstream Corp has completed a series of significant transactions, notably the acquisition of Tall Oak Midstream Operating, LLC and its subsidiaries. The acquisition, which enhances Summit's operational capacity and financial structure, includes a $155 million upfront cash payment and approximately 7.5 million shares of Class B common stock. Alongside this, Summit has finalized a key agreement guaranteeing $575 million in aggregate principal amount of 8.625% Senior Secured Second Lien Notes due in 2029.
Furthermore, the company has 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 is part of a compliance measure with the New York Stock Exchange Listed Company Manual Section 312.03.
Summit Midstream Partners, LP has also undergone a corporate reorganization, transitioning from a master limited partnership to a C corporation. The company has 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 recent developments highlight the company's focus on operational efficiency and shareholder value.
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