THE WOODLANDS, Texas,
Jan. 29, 2020 /PRNewswire/
-- Summit Midstream Partners, LP (NYSE: SMLP) announced today
that the board of directors of its general partner, Summit
Midstream GP, LLC, has declared a quarterly cash distribution of
$0.125 per unit on all of its
outstanding common units for the quarter ended December 31, 2019, or $0.50 per unit on an annualized basis. This
distribution represents a 56.5% reduction from the previous
quarter, and will be paid on February 14,
2020, to unitholders of record as of the close of business
on February 7, 2020.
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Heath Deneke, President & CEO
commented, "Today's distribution announcement represents an
important next step with respect to our focus on strengthening
SMLP's balance sheet and repositioning the company to generate a
material amount of positive free cash flow in 2020. This
decision builds upon our November
2019 partial prepayment and extension of the DPPO to 2022,
our cost savings initiatives, our disciplined 2020 capital budget
which, excluding Double E, is expected to be less than $75 million, and our December 2019 announcement to shift the next
$80 million of Double E capital to a
third-party investor. Throughout 2020, we will continue to
focus on opportunities to create further financial flexibility,
which could include Legacy or Core Focus Area asset divestitures
and / or joint ventures."
"The revised distribution policy is expected to result in SMLP
retaining an incremental $60 million
of annualized cash flow which we plan to utilize to reduce debt.
We will provide an update to our annual financial guidance in
conjunction with our fourth quarter 2019 earnings call."
Fourth Quarter 2019 Earnings Release and Earnings Call
Schedule
SMLP also announced today that it will
report operating and financial results for the fourth quarter of
2019 on Friday, February 28, 2020,
before the start of trading on the New York Stock
Exchange.
SMLP will host a conference call at 10:00
a.m. Eastern on Friday, February 28,
2020, to discuss its quarterly results. Interested
parties may participate in the call by dialing 847-585-4405 or
toll-free 888-771-4371 and entering the passcode 49342130.
The conference call will also be webcast live and can be accessed
through the Investors section of SMLP's website at
www.summitmidstream.com.
A replay of the conference call will be available until
March 13, 2020, at 11:59 p.m. Eastern, and can be accessed by
dialing 888-843-7419 and entering the replay passcode
49342130#. An archive of the conference call will also be
available on SMLP's website.
This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat
one hundred percent (100.0%) of SMLP's distributions to foreign
investors as being attributable to income that is effectively
connected with a United States
trade or business. Accordingly, SMLP's distributions to foreign
investors are subject to federal income tax withholding at the
highest applicable effective tax rate.
For purposes of Treasury Regulation Section 1.871-15(m), SMLP is
not considered a covered partnership.
About Summit Midstream Partners, LP
SMLP is a
value-driven limited partnership focused on developing, owning and
operating midstream energy infrastructure assets that are
strategically located in the core producing areas of unconventional
resource basins, primarily shale formations, in the continental
United States. SMLP provides natural gas, crude oil and
produced water gathering services pursuant to primarily long-term
and fee-based gathering and processing agreements with customers
and counterparties in six unconventional resource basins: (i) the
Appalachian Basin, which includes the Utica and Marcellus shale formations in
Ohio and West Virginia; (ii) the Williston Basin, which includes the Bakken and
Three Forks shale formations in North
Dakota; (iii) the Denver-Julesburg Basin, which includes the
Niobrara and Codell shale
formations in Colorado and
Wyoming; (iv) the Permian Basin,
which includes the Bone Spring and Wolfcamp formations in
New Mexico; (v) the Fort Worth Basin, which includes the Barnett
Shale formation in Texas; and (vi)
the Piceance Basin, which includes the Mesaverde formation as well
as the Mancos and Niobrara shale formations in Colorado.
SMLP has an equity investment in and operates Double E Pipeline,
LLC, which is developing natural gas transmission infrastructure
that will provide transportation service from multiple receipt
points in the Delaware Basin to
various delivery points in and around the Waha Hub in Texas.
SMLP also has an equity investment in Ohio Gathering, which
operates extensive natural gas gathering and condensate
stabilization infrastructure in the Utica Shale in Ohio. SMLP
is headquartered in The Woodlands,
Texas.
Forward-Looking Statements
This press release
includes certain statements concerning expectations for the future
that are forward-looking within the meaning of the federal
securities laws. Forward-looking statements contain known and
unknown risks and uncertainties (many of which are difficult to
predict and beyond management's control) that may cause SMLP's
actual results in future periods to differ materially from
anticipated or projected results. An extensive list of
specific material risks and uncertainties affecting SMLP is
contained in its 2018 Annual Report on Form 10-K filed with the
Securities and Exchange Commission on February 26, 2019, and as amended and updated
from time to time. Any forward-looking statements in this press
release, including forward-looking statements regarding 2019
financial guidance or financial or operating expectations for 2019,
are made as of the date of this press release and SMLP undertakes
no obligation to update or revise any forward-looking statements to
reflect new information or events.
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SOURCE Summit Midstream Partners, LP