- Increasing full year 2021 adjusted EBITDA guidance by $12.5 million, or 5.7% at the midpoint, to a new range of $225 million to $240 million
- Maintaining full year 2021 capital expenditure guidance of $20 million to $35 million
- Revolving credit facility balance expected to total approximately $760 million at June 30, 2021, net of unrestricted cash on hand, which reflects an approximate $82 million net debt reduction since December 31, 2020, and a $26 million net debt reduction since March 31, 2021
Summit Midstream Partners, LP announced an increase to its full year 2021 financial guidance, including a new adjusted EBITDA range of $225 million to $240 million which, at the midpoint, represents an increase of 5.7% from the original guidance range of $210 million to $230 million. Management now expects total indebtedness as of June 30, 2021, net of unrestricted cash on hand, to be reduced by approximately $82 million, which is nearly 6% lower than the outstanding net debt balance as of December 31, 2020.
Heath Deneke, President, Chief Executive Officer and Chairman, commented,
"Summit's year to date financial and operational results continue to exceed our original expectations, largely driven by the outperformance from wells turned in line year to date, accelerated customer activity, and continued gains from expense management initiatives that have been implemented across the organization. While we still expect 2021 to be a trough year for new well connect activity across our footprint, we are encouraged by the strengthening commodity price backdrop and increasing customer activity now expected during the second half of the year. As a result of year to date outperformance and accelerated well activity, we are increasing our full year 2021 adjusted EBITDA guidance to a new range of $225 million to $240 million. We are maintaining our 2021 capital expenditure guidance range of $20 million to $35 million."
"The business continues to produce strong free cash flow, which will enable us to reduce outstanding net indebtedness by nearly $82 million by the end of the second quarter and will continue to allow us to reduce our outstanding debt balance for the foreseeable future."
"We continue to make excellent progress with our efforts to refinance our 2022 debt maturities. We have a number of supportive banks working to facilitate our refinancing plans and a strong capital markets backdrop that we expect will help further optimize our comprehensive refinancing solution. We look forward to providing additional details on our refinancing plans ahead of our second quarter earnings call."