Summit Midstream Corp (NASDAQ:NYSE:SMC), whose stock has surged over 117% in the past year, recently disclosed that its Chairman, President, and CEO, J. Heath Deneke, executed a series of stock sales amounting to $112,730. The transactions took place over three separate days: January 8, January 10, and January 13, 2025. According to InvestingPro analysis, the company currently appears undervalued.
Deneke sold a total of 3,000 shares of Summit Midstream's common stock. The sales were conducted at prices ranging from $37.50 to $37.63 per share, well above the 52-week low of $15.56. These transactions were part of a pre-established trading plan under Rule 10b5-1, which allows company insiders to sell a predetermined number of shares at a predetermined time. InvestingPro subscribers can access comprehensive insider trading analysis and detailed financial health metrics, which currently indicate a FAIR overall rating for Summit Midstream.
Following these sales, Deneke retains ownership of 250,006 shares of Summit Midstream.
In other recent news, Summit Midstream Corp has been active with several significant financial and operational developments. The company issued an additional $250 million in senior secured second lien notes, bringing the total aggregate principal amount of the notes to $825 million. This move is part of Summit's broader strategy to manage its debt portfolio and liquidity needs. The company also recently gained stockholder approval for a substantial stock issuance to Tall Oak Midstream Holdings, LLC, allowing for the issuance of up to 7,471,008 shares of Class B common stock.
Simultaneously, Summit Midstream Corp completed a key transaction following an acquisition that expands its operational capacity. This includes the acquisition of Tall Oak Midstream Operating, LLC, which extends Summit's operational range into the Arkoma Basin. The deal includes a $155 million upfront cash payment and approximately 7.5 million shares of Class B common stock.
In terms of financial performance, Summit Midstream reported strong Q1 results, with a net income of $132.9 million and adjusted EBITDA of $70.1 million. These recent developments reflect the company's ongoing efforts to strengthen its financial structure and operational capabilities.
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