Summit Midstream Corporation (NYSE:SMC) ("Summit", "SMC" or the "Company") announced today that it and its subsidiary, Summit Midstream Partners, LP (the "Partnership"), have entered into a securities purchase agreement with an affiliate of Tailwater Capital LLC ("Tailwater"), for a private placement of 1,351,351 shares of the Company's common stock, at a price of $31.08 per share.
The investment strengthens Summit's balance sheet and provides capital to fund the Company's strategic growth initiatives and general corporate purposes.
"We are pleased to expand our relationship with Tailwater Capital through this equity issuance," said Heath Deneke, President, Chief Executive Officer and Chairman of Summit. "This $42 million investment represents a significant vote of confidence in our company's outlook and provides us with financial flexibility to execute on our current pipeline of high-return growth projects while continuing to make progress towards achieving our long-term 3.5x leverage target."
Pursuant to the securities purchase agreement, Summit will issue 1,351,351 shares of its common stock at a price per share of $31.08 to raise $42.0 million for debt reduction and to fund growth capital. The $31.08 price per share represents the closing price as of March 30, 2026. The shares are subject to a 6-month lock up period and other terms and conditions. The transaction was unanimously approved by the Audit Committee of the Board of Directors, which is comprised solely of independent and disinterested directors.