Summit Midstream Corporation Acquires Tall Oak Midstream Operating

Overview

HOUSTON, Dec. 2, 2024 /PRNewswire/ —

Summit Midstream Corporation (NYSE: SMC) (“Summit”, “SMC” or the “Company”) announced today that it and its wholly owned subsidiary, Summit Midstream Partners, LP (the “Partnership”), received shareholder approval and has completed the previously announced acquisition of Tall Oak Midstream Operating, LLC and its subsidiaries (collectively, “Tall Oak” or “Tall Oak Midstream III”) from an affiliate of Tailwater Capital LLC (“Tailwater Capital”) for $155 million of cash, 7.5 million common units of the Partnership and associated 7.5 million shares of SMC Class B Common Stock (the “Equity Consideration”), and up to $25 million contingent consideration in cash over certain measurement periods through March 31, 2026. This strategic acquisition marks a significant milestone in Summit’s growth strategy, rebalancing its portfolio to approximately 50% natural gas-oriented drilling activities and increasing scale in a credit and value accretive manner.

Summit Midstream Corporation’s recent acquisition of Tall Oak Midstream Operating is set to have a lasting impact on the energy industry. By adding Tall Oak’s assets to its portfolio, Summit is now positioned to expand its reach and capabilities in the natural gas sector. This strategic move not only strengthens Summit’s position in the market but also sets the stage for future growth and profitability.

Impact on Individuals

For individuals, this acquisition may lead to increased job opportunities in the energy sector as Summit looks to expand its operations. Additionally, the added scale and resources provided by the acquisition could result in improved efficiency and service quality for customers in the region.

Global Impact

On a global scale, Summit Midstream Corporation’s acquisition of Tall Oak Midstream Operating reflects the ongoing evolution of the energy industry towards more sustainable and efficient practices. By rebalancing its portfolio to focus on natural gas-oriented activities, Summit is aligning itself with the growing demand for cleaner energy sources worldwide.

Conclusion

Overall, Summit Midstream Corporation’s acquisition of Tall Oak Midstream Operating represents a significant step forward for the company and the energy industry as a whole. With a renewed focus on natural gas and increased scale, Summit is poised for continued success and growth in the years to come.