J. Heath Deneke, the Chairman, President, and CEO of Summit Midstream Corp (NASDAQ:NYSE:SMC), has recently sold 3,000 shares of the company's common stock over three consecutive days. The transactions, which occurred on November 15, 18, and 19, were executed under a pre-established Rule 10b5-1 trading plan.
The shares were sold at prices ranging from $35.54 to $35.91, resulting in a total sale value of approximately $107,060. Following these transactions, Deneke retains ownership of 285,006 shares in Summit Midstream.
These sales were conducted in compliance with a qualified selling plan, which allows company insiders to sell a predetermined number of shares at specified times, helping them avoid potential accusations of insider trading.
In other recent news, Summit Midstream Corporation has announced significant developments. The company has acquired Tall Oak Midstream Operating, LLC and its subsidiaries from Tailwater Capital LLC. This acquisition, expected to close in Q4 of 2024, includes a $155 million upfront cash payment and approximately 7.5 million shares of SMC Class B common stock. It expands Summit's operational footprint into the Arkoma Basin and brings over 440 million cubic feet per day of processing capacity, over 400 miles of pipelines, and over 300,000 dedicated acres to Summit's portfolio.
Simultaneously, Summit Midstream Corporation has completed a corporate reorganization, merging with Summit Midstream Partners, LP and transitioning from a master limited partnership to a C corporation. In the financial sector, the company reported a net income of $132.9 million and adjusted EBITDA of $70.1 million in Q1.
Lastly, Summit Midstream Partners launched a tender offer to repurchase up to $215 million of their 8.500% Senior Secured Second Lien Notes due 2026 and priced an upsized offering of $575 million in senior secured second lien notes due in 2029. This series of recent developments signals a strategic focus on operational efficiency and shareholder value.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Summit Midstream Corp's financial position and market performance. The company's revenue for the last twelve months as of Q3 2024 stood at $450.86 million, with a revenue growth of 7.8% over the same period. This growth comes despite a quarterly revenue decline of 15.49% in Q3 2024, suggesting some volatility in the company's top-line performance.
Summit Midstream's stock has shown impressive momentum, with a year-to-date price total return of 101.79% as of the latest data. This significant increase aligns with the insider selling activity reported in the article, as executives often sell shares after periods of strong stock performance.
InvestingPro Tips highlight two important aspects of Summit Midstream's valuation:
1. The company is trading below book value, with a Price to Book ratio of 0.7.
2. Summit Midstream has a low PEG ratio of 0.06, which could indicate undervaluation relative to its growth prospects.
These tips, along with 11 additional insights available on InvestingPro, provide valuable context for investors analyzing the recent insider selling activity and the company's overall financial health.
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