J. Heath Deneke, Chairman, President, and CEO of Summit Midstream Corp (NYSE:SMC), recently sold a portion of his holdings in the company. The stock has shown remarkable strength this year, with a 95% gain year-to-date. According to InvestingPro analysis, the company currently shows a FAIR financial health score. According to a filing with the Securities and Exchange Commission, Deneke sold a total of 3,000 shares of common stock over three separate transactions on December 19, 20, and 23. The shares were sold at prices ranging from $34.62 to $34.97 per share, totaling approximately $104,530.
These transactions were conducted under a pre-arranged trading plan, in compliance with Rule 10b5-1 under the Securities Exchange Act of 1934. Following these sales, Deneke retains ownership of 262,006 shares in the company.
In other recent news, Summit Midstream Corp has been at the forefront of significant developments. The company reported robust Q1 results, with a net income of $132.9 million and adjusted EBITDA of $70.1 million. Concurrently, Summit Midstream has completed a significant transaction post-acquisition, entering into an agreement that guarantees $575 million in aggregate principal amount of 8.625% Senior Secured Second Lien Notes due in 2029.
In addition, the company has gained stockholder approval for the issuance of up to 7,471,008 shares of Class B common stock to Tall Oak Midstream Holdings, LLC. This move is a compliance measure with the New York Stock Exchange Listed Company Manual Section 312.03.
Further, Summit Midstream announced its acquisition of Tall Oak Midstream Operating, LLC and its subsidiaries for a $155 million upfront cash payment and approximately 7.5 million shares of Class B common stock. This acquisition expands Summit's operational reach into the Arkoma Basin.
Finally, the company has undergone a corporate reorganization, transitioning from a master limited partnership to a C corporation and launched a tender offer to repurchase up to $215 million of their 8.500% Senior Secured Second Lien Notes due 2026. These are the latest developments in the company's ongoing efforts to enhance its financial structure and operational capacity.
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