Summit Midstream Update

Strategic review process in advanced stages, 2024 guidance OK given natural gas headwinds

Note: I am working on two new feature articles.

The first is a small-cap “GARP” idea that is well positioned for future earnings growth. This company has been successfully climbing out of the “left for dead” value bucket for some time. The stock is up substantially, but set for greater gains as new facilities come online and growth investors pile in.

The second is a value “dumpster dive” where a catalyst exists to transform profitability. Fortunately, the strategy does not require genius-level turnaround skills. The plan is to sell/close the money hemorrhaging business unit, invest in the profitable-yet-neglected business, and return capital to investors.

SMLP update

My original article on Summit Midstream (SMLP) can be found here.

My friend Andrew Walker also did an excellent writeup on the situation last month, found here (premium article).

I wanted to make a few comments on Q4 results and the strategic review update, including my guess as to the most likely outcome/what management is considering.