Summit Midstream Corporation reported a significant decline in financial performance for the third quarter of 2024 compared to the same period in 2023. Total revenues for the three months ended September 30, 2024, were $102.4 million, down from $121.2 million in 2023. This decrease was primarily driven by a $22 million drop in gathering services and related fees, which fell to $44 million from $66 million year-over-year. However, revenues from natural gas, NGLs, and condensate sales increased slightly to $48.2 million, up from $45.1 million in the prior year.

The company's net loss for the third quarter was $197.5 million, a stark contrast to a net income of $3.9 million in the same quarter of 2023. This loss was attributed to various factors, including an impairment charge of $67.9 million related to the Mountaineer Transaction and a corporate reorganization that resulted in a $148.6 million income tax expense. For the nine months ended September 30, 2024, the net loss was $88.4 million, compared to a loss of $23.8 million in the same period of 2023.

Summit Midstream's total assets decreased to $1.999 billion as of September 30, 2024, from $2.494 billion at the end of 2023. The company’s long-term debt was reduced to $826.5 million, down from $1.455 billion, reflecting a strategic focus on debt reduction following significant asset sales, including the $625 million sale of Summit Utica and the $70 million sale of the Mountaineer Midstream system.

The corporate reorganization, effective August 1, 2024, transitioned the company from a partnership structure to a C-corporation, which has implications for its tax obligations. As part of this reorganization, the company issued 7.471 million shares of Class B common stock in connection with a business contribution agreement with Tall Oak Midstream Holdings, LLC, valued at $425 million.

Operationally, the company faced challenges with natural gas throughput, which decreased by 685 MMcf/d in the third quarter compared to the previous year. The Northeast segment experienced the most significant decline, while the Rockies segment saw a slight increase in throughput.

Overall, Summit Midstream's financial results reflect a challenging environment marked by reduced revenues, increased losses, and strategic shifts aimed at optimizing its capital structure and operational efficiency.