In recent transactions disclosed in an SEC filing, J. Heath Deneke, Chairman, President, and CEO of Summit Midstream Corp (NYSE:SMC), sold a total of 3,000 shares of the company's common stock. The sales took place over three days, from November 29 to December 3, with prices ranging from $37.20 to $37.85 per share. The total value of these transactions amounted to approximately $112,850. The stock, which has surged over 112% year-to-date, currently trades at $38.01. According to InvestingPro analysis, SMC is currently fairly valued, with a Financial Health Score rated as "FAIR."
The shares were sold under a qualified selling plan adopted in compliance with Rule 10b5-1, as noted in the filing. For investors seeking deeper insights, InvestingPro offers comprehensive analysis of SMC's financials, including exclusive ProTips and a detailed Pro Research Report. Following these transactions, Deneke now holds 276,006 shares of Summit Midstream Corp.
In other recent news, Summit Midstream Corp has made significant strides in its business operations. The company's stockholders approved a significant stock issuance to Tall Oak Midstream Holdings, LLC, allowing for the issuance of up to 7,471,008 shares of Class B common stock and an equal number of common units. This move is part of a compliance measure with the New York Stock Exchange Listed Company Manual Section 312.03.
The company has also announced the acquisition of Tall Oak Midstream Operating, LLC and its subsidiaries, a deal expected to close in the last quarter of 2024. This acquisition will expand Summit's operational reach into the Arkoma Basin, adding over 440 million cubic feet per day of processing capacity and over 400 miles of pipelines to Summit's portfolio.
Simultaneously, Summit Midstream Partners, LP, has undergone a corporate reorganization, transitioning from a master limited partnership to a C corporation. This strategic shift is aimed at simplifying the company's structure and potentially lowering its long-term cost of capital.
In their recent financial developments, Summit reported a net income of $132.9 million and adjusted EBITDA of $70.1 million, indicating a strong financial position. Following these developments, the company divested its Northeast segment assets for approximately $700 million, underlining a strategic shift towards mergers and acquisitions. These developments highlight Summit's focus on operational efficiency and shareholder value.
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