HOUSTON—Deneke J. Heath, the Chairman, President, and CEO of Summit Midstream Corp (NYSE:SMC), has recently sold a total of $111,080 worth of common stock. The transactions, which occurred over three consecutive days from November 25 to November 27, involved the sale of 3,000 shares in total.
The shares were sold at prices ranging from $36.85 to $37.16 per share. Following these transactions, Heath retains ownership of 279,006 shares, according to the Form 4 filing with the Securities and Exchange Commission.
These stock sales were conducted under a pre-established trading plan, in compliance with Rule 10b5-1, which allows company insiders to set up a predetermined plan for selling stocks in accordance with insider trading laws.
In other recent news, Summit Midstream Corporation announced a significant acquisition of Tall Oak Midstream Operating, LLC and its subsidiaries from Tailwater Capital LLC. The deal, valued at a combination of cash and equity, is expected to close in the fourth quarter of 2024. The acquisition includes an upfront cash payment of $155 million and roughly 7.5 million shares of SMC Class B common stock. This strategic move aims to enhance Summit's scale and financial flexibility, expanding its operational footprint into the Arkoma Basin.
Summit Midstream Corporation also reported strong Q1 results, with a net income of $132.9 million and adjusted EBITDA of $70.1 million. These recent financial developments followed the company's divestment of its Northeast segment assets for approximately $700 million, indicating a shift in strategic focus towards mergers and acquisitions in the Rockies and Permian segments.
In another recent development, Summit Midstream Partners, LP completed a corporate reorganization, merging with Summit Midstream Corporation. This transition from a master limited partnership to a C corporation aims to simplify the company's structure and potentially lower its long-term cost of capital.
These recent developments reflect Summit Midstream Corporation's strategic focus on operational efficiency and shareholder value. The acquisition of Tall Oak Midstream Operating, LLC and the corporate reorganization are significant steps in the company's ongoing growth strategy.
InvestingPro Insights
The recent stock sales by Summit Midstream Corp's CEO Deneke J. Heath come at a time when the company's financial performance presents a mixed picture. According to InvestingPro data, SMC has seen a remarkable 98.03% price total return over the past year, indicating strong market confidence. This aligns with one of the InvestingPro Tips, which notes the company's "High return over the last year."
However, investors should be aware that SMC operates with a significant debt burden and has not been profitable over the last twelve months, as highlighted by additional InvestingPro Tips. The company's revenue for the last twelve months stands at $450.86 million, with a revenue growth of 7.8%. Despite this growth, SMC's basic and diluted EPS from continuing operations are both negative at -$12.53, reflecting the profitability challenges.
It's worth noting that SMC's stock price movements are quite volatile, which could explain the CEO's decision to sell shares under a pre-established trading plan. The company's Price to Book ratio of 0.73 suggests that the stock might be undervalued relative to its book value, potentially offering an opportunity for value investors.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into SMC's financial health and market position. In fact, InvestingPro has 5 more tips available for Summit Midstream Corp, which could be valuable for investors looking to make informed decisions about this stock.
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