Summit Midstream Partners (SMLP) Misses Q1 EPS by 72c, Revenue sBeat

Summit Midstream Partners (NYSE: SMLP) reported Q1 EPS of ($0.58), $0.72 worse than the analyst estimate of $0.14. Revenue for the quarter came in at $131.41 million versus the consensus estimate of $109.34 million.

Leonard Mallett, interim President and Chief Executive Officer, commented, "Our financial results for the first quarter of 2019 were generally in line with our expectations. Our outlook for the balance of 2019 remains strong and is supported by 16 active rigs currently running upstream of our gathering systems and more than 100 DUCs that our customers maintain in inventory. This customer activity is the best indicator of future growth, and gives us visibility for the pace of volume throughput and adjusted EBITDA throughout the balance of the year, with significant growth expected from our Core Focus Areas, which include the Utica, Williston, DJ and Permian segments. As such, we are affirming our 2019 adjusted EBITDA guidance of $295 million to $315 million. Our first quarter financial results enabled us to generate a strong distribution coverage ratio of 1.7x and we expect this metric will continue to strengthen, in line with adjusted EBITDA growth, throughout the year."

"Our team continues to focus its efforts to successfully execute on key projects, including the completion and commissioning of our new 60 MMcf/d processing plant in the DJ Basin, which is expected this quarter, increasing the utilization and efficiency of our newly-commissioned Permian Basin gathering and processing assets, and the development of the Double E Pipeline Project. The DJ plant commissioning and expected volume ramp on the Permian system, together with new pad connections in the Williston Basin and infill drilling and completion activities behind our SMU system, represent near-term catalysts that we expect will drive volume and adjusted EBITDA growth higher throughout the balance of 2019. In addition, we are actively evaluating opportunities to further strengthen the balance sheet and accelerate deleveraging, including non-core asset sales."

For earnings history and earnings-related data on Summit Midstream Partners (SMLP) click here.

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