HOUSTON—Deneke J. Heath, the Chairman, President, and CEO of Summit Midstream Corp (NYSE:SMC), recently sold a total of 3,000 shares of the company's common stock over a three-day period. The transactions, conducted on November 20, 21, and 22, were executed under a qualified selling plan compliant with Rule 10b5-1.
The shares were sold at prices ranging from $35.74 to $35.82 per share, amounting to a total value of $107,310. Following these sales, Deneke's direct ownership in the company stands at 282,006 shares.
These transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, providing transparency about the executive's trading activities.
In other recent news, Summit Midstream Corporation has announced a significant expansion through the acquisition of Tall Oak Midstream Operating, LLC and its subsidiaries from Tailwater Capital LLC. This acquisition, set to close in Q4 of 2024, will cost Summit a $155 million upfront cash payment and approximately 7.5 million shares of SMC Class B common stock. The deal will increase Summit's operational footprint into the Arkoma Basin and enhance its financial flexibility.
In addition to the acquisition, Summit has also completed a corporate reorganization, merging with Summit Midstream Partners, LP and transitioning from a master limited partnership to a C corporation. This move aims to simplify the company's structure and potentially lower its long-term cost of capital.
Simultaneously, Summit launched a tender offer to repurchase up to $215 million of their 8.500% Senior Secured Second Lien Notes due 2026. The company also successfully priced an upsized offering of $575 million in senior secured second lien notes due in 2029.
Finally, Summit reported strong Q1 results, with a net income of $132.9 million and adjusted EBITDA of $70.1 million. Following these financial developments, the company divested its Northeast segment assets for approximately $700 million, signaling a shift in focus towards mergers and acquisitions in the Rockies and Permian segments. These are the latest developments in Summit's strategic focus on operational efficiency and shareholder value.
InvestingPro Insights
As Summit Midstream Corp (NYSE:SMC) experiences insider selling activity, it's crucial to consider the broader financial context of the company. According to InvestingPro data, SMC's revenue for the last twelve months as of Q3 2024 stood at $450.86 million, with a revenue growth of 7.8% over the same period. This growth, however, contrasts with the quarterly revenue decline of 15.49% in Q3 2024, indicating some volatility in the company's financial performance.
InvestingPro Tips highlight that SMC operates with a significant debt burden and has not been profitable over the last twelve months. These factors may contribute to the stock's volatility, which is another characteristic noted by InvestingPro. Despite these challenges, the company has shown a high return over the last year, with a one-year price total return of 98.67% as of the latest data.
The company's price-to-book ratio of 0.7 suggests that the stock may be undervalued relative to its book value. This could be of interest to value investors, especially considering the recent insider selling activity.
For readers seeking a more comprehensive analysis, InvestingPro offers additional tips and insights on SMC. In fact, there are 13 more InvestingPro Tips available for Summit Midstream Corp, providing a deeper understanding of the company's financial health and market position.
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