MeritValue

Summit Midstream Corp

SMCdata completeness 100%3 fiscal years on file
The thesis, from the filings

Summit Midstream Corp earns about 3% on invested capital, but has diluted owners by 17% over 3 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2023FY 2024FY 2025
Revenue$458.9M1$429.6M1$562.1M1
Net income−$51.5M2−$122.2M2−$5.94M2
Operating cash flow$126.9M3$61.8M3$133.6M3
Capital expenditure$68.9M4$53.6M4$89M4
Free cash flow (derived)$58M3$8.16M3$44.6M3
Total debt$2.94B5$1.99B6$2.09B6
Cash & equivalents$14M7$22.8M8$9.27M8
Diluted shares10.3M10.6M12.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$450.16
your share of equity
Profit it earned you last year
−$4.89
Free cash flow it threw off
$36.72
Debt you’d be carrying
$1,723.51

10 shares is a claim on $450.16 of net worth that earned you −$4.89 and generated $36.72 of cash last year, against $1,723.51 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
3% avg · 3y
FY23 2%FY24 3%FY25 3%

It earned an average 3% on invested capital over 3 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+17% shares · 3y

Share count is up 17% over 3 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 29% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$44.6M
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$44.6M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2023-12-31 · accession 0002024218-26-000017 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-12-31 · accession 0002024218-26-000017 (NetIncomeLoss)
  3. 10-K · period ending 2023-12-31 · accession 0002024218-26-000017 (NetCashProvidedByUsedInOperatingActivities)
  4. 10-K · period ending 2023-12-31 · accession 0002024218-26-000017 (PaymentsToAcquirePropertyPlantAndEquipment)
  5. 10-K · period ending 2023-12-31 · accession 0002024218-25-000020 (LongTermDebtNoncurrent)
  6. 10-K · period ending 2024-12-31 · accession 0002024218-26-000017 (LongTermDebtNoncurrent)
  7. 10-K · period ending 2023-12-31 · accession 0002024218-25-000020 (CashAndCashEquivalentsAtCarryingValue)
  8. 10-K · period ending 2024-12-31 · accession 0002024218-26-000017 (CashAndCashEquivalentsAtCarryingValue)