How Summit Midstream’s Stock Has Performed in 2016 So Far



Summit Midstream’s market performance

Summit Midstream Partners (SMLP), which supplies natural gas, crude oil, and water gathering services, has gained 23.1% YTD (year-to-date). At the same time, the Alerian MLP ETF (AMLP), which comprises of 26 midstream energy MLPs, has gained 4.0%. However, SMLP is still trading 56.6% lower compared to the levels before the rout in energy prices. This could be attributed to SMLP’s declining throughput volumes in some regions and high leverage.

SMLP fell 7.2% in the three trading sessions following the equity offering announcement on September 6, 2016. The partnership is offering 5,500,000 common units priced at $23.2 per unit. SMLP was trading close to $25 per unit before the announcement.

SMLP peers Antero Midstream Partners (AM) and Crestwood Equity Partners (CEQP) have gained 20.9% and 4.5%, respectively, in 2016.

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A look at SMLP’s moving averages

Currently, SMLP is trading just above its 50-day moving average and 19.5% above its 200-day moving average. Plus, the 50-day moving average surpassed the 200-day moving average in May 2016, indicating a bullish trend in SMLP’s stock.

Summit Midstream’s 2Q16 earnings

Summit Midstream’s 2Q16 adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose to $142.4 million from $123.5 million in 2Q15, a YoY (year-over-year) increase of 15.3%. The partnership also increased its 2016 EBITDA guidance by 2% to $280 million.

Later in the series, we’ll analyze SMLP’s balance position and cash flow measures. Following an analysis of SMLP’s operating results, we’ll look into SMLP’s valuations, commodity price exposure, key performance indicators, and analyst projections.


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