HOUSTON - Summit Midstream (NYSE:SMLP) Partners, LP (NYSE: SMLP), a midstream energy infrastructure company, is set to complete its conversion from a master limited partnership to a C-corporation, known as Summit Midstream Corporation ("New Summit"). The transition will take place on Thursday, August 1, 2024, with the company's Common Stock beginning to trade on the New York Stock Exchange under the new ticker symbol "SMC".
The Corporate Reorganization, as the process is called, will see each of the 10,648,685 common units representing limited partner interests in the Partnership exchanged for one share of common stock in New Summit. In addition, the 65,508 9.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units will be exchanged for shares of Series A Floating Rate Cumulative Redeemable Perpetual Preferred Stock of New Summit. However, New Summit does not plan to list the Series A Preferred Stock on any securities exchange.
This move comes after unitholders approved the Corporate Reorganization and all other proposals during the Partnership's Special Meeting of Unitholders on July 18, 2024. The reorganization is aimed at providing a lower long-term cost of capital among other anticipated benefits.
Summit Midstream Partners, LP has been a key player in developing and operating midstream energy infrastructure assets. Their services include natural gas, crude oil, and produced water gathering, processing, and transportation, primarily under long-term, fee-based agreements. The company operates in several core producing areas of unconventional resource basins in the United States, including the Williston Basin, Denver-Julesburg Basin, Fort Worth Basin, and Piceance Basin.
InvestingPro Insights
As Summit Midstream Partners transitions to Summit Midstream Corporation, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, the newly formed Summit Midstream Corporation (ticker: SMC) currently has a market capitalization of $1.42 million. This valuation reflects the market's current assessment of the company's value as it embarks on its new corporate structure.
InvestingPro Tips suggest that investors should consider the company's recent performance trends. Despite the structural changes, SMC has experienced a significant 1 Year Price Total Return of -70.0%, indicating that the stock has faced downward pressure over the past year. This could be a critical factor for investors assessing the potential risks and rewards associated with the company's stock.
Moreover, the Price % of 52 Week High stands at 20.0%, showing that the stock is currently trading significantly below its highest price over the past year. This could be interpreted as a potential discount opportunity for investors, depending on their confidence in the company's future prospects post-reorganization.
For a more comprehensive analysis, InvestingPro offers additional tips on the platform. Currently, there are 15 more InvestingPro Tips available for investors seeking detailed guidance on SMC's financial metrics and investment potential.
Investors are also keeping an eye on the upcoming earnings date, scheduled for October 24, 2024, which will provide further insights into the company's financial performance and strategic direction following the structural changes.
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