Operator: Good day, and welcome to the second Q 26 Summit Midstream Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question, you will need to press *11 on your touch-tone telephone. Please note this call is being recorded. I would like to turn the call over to Randall Burton. Please go ahead.

Randall Burton: Thanks, operator, and good morning, everyone. If you do not already have a copy of our earnings release, please visit our website at summitmidstream.com. Where you will find it on the home page, events and presentation section, or quarterly results section. With me today to discuss our second quarter of 26 financial and operating results is J. Heath Deneke, our President, Chief Executive Officer, Chairman and William J. Mault, our Chief Financial Officer. Along with other members of our senior management team. Before we start, I would like to remind you that our discussion today may contain forward-looking statements. These statements may include, but are not limited to, our estimates of future volumes, operating expenses and capital expenditures. They may also include statements concerning anticipated cash flow liquidity, business strategy, and other plans and objectives for future operations. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can provide no assurance that such expectations will prove to be correct. Please see SMC's annual report on form 10-K for the fiscal year ended 12/31/2025 which the company filed with the SEC on 03/16/2026, as well as our other SEC filings for a listing of factors that could cause actual results to differ materially from expected results. Please also note that on this call, we use the terms EBITDA adjusted EBITDA, distributable cash flow, and free cash flow. These are non GAAP financial measures, and we have provided reconciliations to the most directly comparable GAAP measures in our most recent earnings release. And with that, I will turn the call over to Heath.

J. Heath Deneke: All right. Thanks, Randall, and good morning, everyone. Summit announced strong second quarter results today. With adjusted EBITDA of $60.7 million, which is a 12% increase relative to the first quarter. The second quarter increase was driven by growth in both our Rockies and Mid-Con segments, And as we look ahead to the rest of the year, we are very encouraged with the level of activity we are experiencing across our systems and we are seeing our customers accelerate plans to bring on new wells that are expected to be turned in line towards the end of 26. Additionally, as we will discuss further in the call, we have a lot of continued commercial momentum in the Rockies and the Permian segments as we keep securing new contracts to support very attractive high returning expansion projects. Touching on the second quarter a bit more, we turned in line 36 wells 16 in the DJ, and 20 in the Mid-Con. Right after the quarter closed, we brought on another 17 wells in the Williston. We now have roughly 75 drilled and uncompleted wells across the footprint. it is exciting to see our customers responding to the higher crude price environment as we speculated could occur back in our earnings call back in May. We now have a total of 8 rigs running behind our Rockies system, which, by the way, is up from 5 in the previous quarter. And 6 of those rigs are in the Williston. And I would tell you that is a level we are excited about. We have not seen in several years in the basin. So part of that activity pickup in the Williston is existing customers. Accelerating their programs in a stronger crude environment. But part of it is also our commercial success. As we previously announced, we secured 2 new gathering agreements in Dubai County during the first half of the year? Both of the new customers have a rig running behind the system today. And as a result, we now have visibility to approximately 30 new well connections in the Williston that were not contemplated when we set our guidance for the year. These are weighted towards the fourth quarter. So we do expect limited volume contribution in 2026. But they do position us for a very strong start as we look into 2027. In the DJ, we also see our customers ramping up plans that we expect will be a big catalyst for late 26 early 27 as well. We recently signed a new 20 year extension of a gathering and processing agreement with 1 of our existing anchor customers in the basin And we are also working with other customers to potentially dedicate new acreage to our growing DJ footprint. it is really an exciting time to see this level of activity ramping up in the Rocky segment and what that means, for the future. On Double E, we executed additional firm transportation agreements during the quarter, brought total contracted volume on the pipe to just over 1.9 Bcf per day. We continue to see a tremendous amount of customer interest in the mainline expansion open season, and we have extended that open season now through the end of August as we work to finalize additional firm transportation agreements that will support the project. We expect to be in a position to make a final investment decision prior to the open season conclusion, and we will provide updates as they become available. And just to mention the Mid-Con segment, 1 of the highlights there is that we are very encouraged with the performance of new wells that have recently been turned in line in an emerging dry gas region within our Arkoma footprint. This, again, is a development that could be a major catalyst for the segment in 2027 and beyond. And finally, before handing the call over to Bill, I would like to hit on guidance real quick. As we said, we have had a solid first half in the books. And we now have a far better line of sight into second half volumes than we did back in Mark with the activity level. Now accelerating as well across the footprint. As a result, we are tightening our full year 2026 adjusted EBITDA guidance to a range of $235 million to $255 million We are also raising full year capital expenditure guidance to $100 million to $120 million which is inclusive of the contributions to the Double E JV, Look, the first driver of that capital increase is for the approximate 30 new wells that we talked about earlier in the call, which were not part of our original plan. As well as the second, I guess, would be the incremental capital at Double E, which is tied to the new firm transportation agreements that we executed this year. As a reminder, those-- that Double E capital will be funded through our new term loans that we executed earlier, in the year. So look, both of these you know, increases in expenditures are going to be really high returning dollars and tied to activity that is either contracted or committed. And in both cases, we see that the earning benefits will start showing up in 2027. So with that, I would like to turn the call over to Bill now to walk through the financials.

William J. Mault: Thanks, Heath, and good morning, everyone. Summit reported 2026 adjusted EBITDA of 60.7 million distributable cash flow of $36.8 million and free cash flow of $9.4 million. Total capital expenditures were $25 million for the quarter, inclusive of $4.1 million of maintenance CapEx. With the majority of capital directed toward tax connections in the Rockies and Mid-Con segments. With respect to Summit's balance sheet, we ended the quarter with $21 million of unrestricted cash, and $79 million drawn on our revolver, with approximately $418 million of available borrowing after accounting for $2.7 million of undrawn letters of credit. Total leverage at the end of the quarter was approximately 4.1x. And the Summit Permian Transmission term loan had a balance of $350 million at quarter end and remains nonrecourse to Summit. With all the commercial progress and our expectation to FID compression in the near term, we are also working with our financial partner at Summit Permian Transmission to secure the $50 million uncommitted accordion to support the compression expansion project. During the quarter, we also began executing on the $35 million share repurchase program authorized by the Board repurchasing approximately 35 thousand shares for $1 million. As of June 30, we had approximately $34 million of remaining capacity under the program. Now on to the segments. The Rockies segment generated adjusted EBITDA of $30.4 million, an increase of $4 million relative to the first quarter of 26. Driven by a 6.3% increase in liquids volume throughput and higher realized crude oil and NGL prices partially offset by a 3% decline in natural gas volume throughput. Liquids volumes averaged 68 thousand barrels per day, and natural gas volumes averaged 162 million cubic feet per day during the quarter. Realized crude oil prices and composite NGL prices were both up approximately 30% quarter over quarter benefiting both our customers' and Summit's earnings associated with percentage-of-proceeds contracts in the DJ Basin. We connected 16 wells in the DJ Basin during the quarter, and subsequent to quarter end, we connected an additional 17 wells in the Williston Basin, including 9 wells for which we provide both crude oil and produced water gathering services. And just as a reminder, the water-to-crude ratio in this area of the Williston is approximately 3 barrels to 1. So these wells are extremely impactful to volume throughput. While those 9 wells are still ramping, through August to date, they have averaged approximately 15 thousand barrels per day of combined crude oil and produced water throughput. We are excited about the growth trajectory of this segment, not only from the acceleration of activity, but continued delineation and development of the remaining inventory in both William and Dubai Counties. Additionally, in the DJ, Peoria Resources, who entered the basin acquiring Verdad earlier this year, announced the acquisition of Fundare Resources last week As you know, Fundare is a key customer behind the Moonrise 2025. And this transaction offers Peoria additional contiguous acreage to drill longer laterals drive down breakevens, and fully develop the resource behind the Moonrise processing plant. There are 8 rigs currently running behind the systems, 6 in the Williston and 2 in the DJ. with approximately 75 DUCs. The Permian segment reported EBITDA of $9.4 million, an increase of $600 thousand relative to the first quarter driven by a 6.7% increase in Double E volume throughput with Double E averaging 859 million cubic feet per day of throughput during the quarter. The Piceance segment reported EBITDA of $8.7 million, a decrease of $900 thousand relative to the first quarter. Primarily due to a 5.7% decline in volume throughput driven by continued temporary shut ins from low regional gas prices, natural production declines, and no new well connections during the quarter. However, as of the end of July, all of the previously shut in production had begun flowing. Finally, the Mid-Con segment reported adjusted EBITDA of $21.4 million, an increase of $2 million relative to the first quarter primarily due to a 9.9% increase in natural gas volume throughput to 23 million cubic feet per day. This was driven by 17 new Barnett wells and 3 new Arkoma well connections, during the quarter. These wells are either performing in line or slightly above our expectations and we are encouraged with how long these wells are holding production before starting their initial declines. And with that, I will turn the call back over to Heath for closing remarks.

J. Heath Deneke: All right. Thanks, Bill. So to wrap up, we are very excited about the trajectory of the business for the remainder of 2026 and into 2027 as well. Volumes are growing and customer activity behind our systems is accelerating. As we have laid out in our recent investor presentation, the business is poised to deliver over $100 million of organic growth by 2030. Which is driven by the Rockies and Permian segments primarily. Look. All of this you can see materializing real time, when you look at the commercial success that we are having along with the development activity levels that we are experiencing. Our current focus is completing a conclusion to the Double E compression expansion open season in the coming weeks, as well as staying ahead of our customers in the Rocky segment with our well connect programs that will enable our customers to even maybe further accelerate their development activity. On the corporate front, we continue to make progress towards achieving our 3.5x leverage target and making our goal of resuming a common dividend in the near future a reality. We think the combination of Summit's robust growth outlook our current and projected high free cash flow yield, our improving balance sheet, and our current valuation all provide a very clear and compelling value proposition for you, new and existing, investors in Summit. So with that, I would like to thank everyone for joining the call. And look forward to answering your questions. Operator, please open the call for questions.

Operator: Thank you. As a reminder, if you would like to ask a question, please *11. If your question has been answered and you would like to remove yourself from the queue, press *11 again. Our first question comes from Mark Reichman with NOBLE Capital Markets. Your line is open.

Mark Reichman: Thank you. How much incremental adjusted EBITDA could the 30 new Williston well connections contribute in 2027, and how should we think about the broader growth opportunity in the basin beyond those wells?

William J. Mault: Yeah. Good morning, Mark. Thanks for joining. So the 30 incremental wells we are talking about Mark, I would view that as somewhere around $10 million kind of EBITDA contribution just from that development. Now, obviously, those 30 wells are coming online, call it late Q4, early Q1. We would expect additional activity to transpire for the remainder of 2027 in the Williston. it is a little early relative to producer guidance, but if you just think about that 15 thousand barrel a day increase from the 9 crude and water wells, You know, we are talking about sizable volumetric growth relative to kind of a print this quarter on liquids volume. So you know, we have talked about some of that volumetric sense that we include in our investor deck. I think what we are seeing, we are trending towards that higher end of the, call it, percent-kind-of volumetric growth under this type of cadence.

J. Heath Deneke: Then Mark, just 1 of the thoughts I would add there is well. I mean, you think about when these you know, the producers behind these new you know, we sign what 240 thousand acres worth of new dedications to the system. In the first half of the year? And a lot of their plans were developed off of you know, a crude strip that was materially below where we are now. So I think you know, if crude holds kind of in this you know, current range that we are in now, I would actually expect to probably see some additional acceleration or maybe additional rigs being added on the acreage position. And we think we have a lot of upside. And also, we get to given our positioning in Divide and Northern Williams County. I think we have got additional targets out there that we think we may be able to bolt on some additional customers as well. So pretty exciting growth up here in the Williston. Good to see on our system.

Mark Reichman: that is very helpful. Now what remaining commercial commitments are necessary to reach FID on the Double E compression expansion. And I am just looking at that slide in your slide deck on page 7 where you kind of step through the volumes and the financial contribution. So maybe you could a little bit about that and maybe the incremental EBITDA that you expect if the project proceeds Yeah, Mark.

Christopher H. Tennant: This is Christopher H. Tennant. I appreciate the question. You know, we are putting the final touches on 2 TPA agreements right now that will push us over the FID hurdle here in the next couple of weeks. And, you know, the FID case will give us right at a sub-6x build multiple. You know, the asset is in a great position, and we feel very confident about fully contracting it. And as we contract the remaining capacity, you know, we will see that build multiple go to a 3x or lower build multiple.

William J. Mault: So we are we are really excited about that and feel very confident in our contracting and the position around Double E And, Mark, to bridge the gap on kind of the page you are looking at in the investor deck, You know, we are showing kind of $70 million of existing contracts and then with compression, 90 plus million of EBITDA. Think about that FID case being somewhere kind of in between those. To get a kind of baseline economics for us to make the decision to FID And then the goal, our expectation, would be to fully commercialize the remaining capacity by the end of the year.

Mark Reichman: Okay. that is really helpful. And then, you know, with the Piceance MVCs shortfall payments, expiring at the end of the third quarter, how should we think about the segment's normalized EBITDA beginning in fourth quarter and into 2027? I was just kind of wondering if the return of the previously shut in production and future drilling might offset the loss of the MVC related earnings or should we expect a step down in cash flow?

William J. Mault: Yeah. Mark, you should expect a step down in cash flow starting in the fourth quarter. And just to provide some high-level numbers. Think of that as like, you know, there is roughly $4 million of shortfall payments a quarter. So, you know, the business, that segment did around, you know, 8.5, $8.6 million this quarter. So you are somewhere around $4 million to $4.5 million of kind of flowing EBITDA, which will give you a good run rate for 27. Longer term, Mark, so, you know, and we can get into this in more detail if you would like, but longer term in our long term outlook, the $100 million of EBITDA growth through 2030, we are really not expecting any development in the Piceance that forecast. I do think that is conservative. I think there are things like the data center build out, you know, in that entire kind of Rockies area. As well as Canadian LNG, we really need some gas demand to kind of offset some of the Canadian associated gas that is flooding the market in which these producers sell into. On the residue gas side. there is a lot of-- there is a lot of upside, but we are not we are not banking on it in our long term outlook. But I do think we are being a bit conservative long term from that perspective. Okay.

Mark Reichman: And then on the so adjusted EBITDA for the first half was $115 million, and you narrowed your guidance. The midpoint remains at kind of $245 million. So what could drive results towards the upper end of the range or even the lower end of the range? it is a pretty tight range to begin with, I guess.

J. Heath Deneke: Yeah. Mark, this is Heath. Look. I think we kind of-- we think we are kind of at the midpoint plus is how we describe the way things are set up right now. You know, the low end, I would say they have to be a pretty dramatic drop in commodity values. You know, most of the activity frankly, even third quarter activity, a lot of that is already been turned online or about to be turned in line. And the fourth quarter wells are really slanted more towards you know, December than they are, early in the quarter. I think activity-wise, you know, I think we are pretty nailed down here. So I guess, you know, if we had some significant underperformance of wells that might kind of skew the numbers down a little bit. But I kind of think, you know, we have got we have got upside beyond the midpoint, and, you know, that probably more than offsets any kind of, you know, risk to the downside in my view. So lots of good momentum here to hold on to.

Mark Reichman: Yeah. So I was glad to see the I was encouraged to see the rebound in the MidCon compared to the first quarter of this year, but so the last question I had was just by the way.

J. Heath Deneke: And so those were the-- I said those were the dry gas wells, by the way. They came online that really kind of pushed volumes up. And just by the way. Really excited about those. They are big wells. Yeah. And, Mark, that is that is something, like, if you think about the sensitivity for 2026, which, you know, is pretty compelling so far and look. The a handful of the wells have been on for, call it, 2, 3 months now. But they are really hanging in. We have not seen that kind of the initial kind of decline profile kick off yet. So you know, it is encouraging. They are big wells. And I do think it really illustrates the earnings potential of that segment with pretty modest amount of activity.

William J. Mault: Yeah, rigs, yeah. Right.

Mark Reichman: Now the last question I have is just, you know, how do you kind of rank debt reduction, organic growth, buybacks/share repurchases, and then the potential reinstatement of the common dividend, you know, when you are thinking about allocating incremental free cash flow and I know your longer term leverage target is 3.5. I think you were 4.1x at the quarter end. What might be your medium term leverage target?

J. Heath Deneke: Yeah. Well, look, I think I think you actually got the order correct. Turns out we think about them, Mark. You know, I think definitely, getting to our leverage target which look, we continue to feel really good about. I mean, if the momentum picks up, or continues like what we are seeing right now and the activity levels behave as we do, I think in 2028, you know, we could we could potentially get there. There are a few catalysts that could even accelerate that. But somewhere we think in the next 18 months is not an unreasonable assumption. Terms of getting to our target. But, you know, look, we do have a lot of growth opportunity, and, you know, I do think that, you know, that is something that we are focused on. I think you know, fortunately, with Double E, you know, ton of growth going on there, but we have got all of that capital already, you know, spoken for in a term loan that we put downstairs. So do not expect to see a big ramp up in our base business or non double capital. It probably will hang in there in around the 50 ish mark or so. So I think, you know, we are gonna see some continued, you know, free high free cash flow kinda coming out. You know, continue to pay down debt. And, yeah, I think we are, you know, we are eager to kind of get a return of capital program underway here. So know, we are definitely focused on it.

William J. Mault: And, Mark, if you think about so, when we, you know, obviously, we think the stock is undervalued. Particularly when you take into context trading multiples relative to our peers. And the balancing act here we think that, you know, obviously, scale, getting leverage to our target, turning on dividend policy, are more meaningful ways to bridge that value gap. Versus just buying back stock out of the market. So think about it as what we think has the potential to drive a more intrinsic value of the stock. Longer term. And that buyback program is truly just given some of the float and liquidity, is really there to help support in downside days. Right? So when the Iran conflict when they got to resolution a month or so ago, there was a lot of volatility in the energy sector. When we put that buyback program to work. and, you know, kind of help support the stock and provide some liquidity to investors. Hey.

J. Heath Deneke: And, Mark, just sorry. Just to make sure if I was clear because I think I said 2028. But what I meant to say when I hope I said was the next 12 to 18 months. So kind of think about, you know, towards the mid half or second half of 27 to first half of 28 is, I think, when we when we expect to get there.

Mark Reichman: Okay. No. that is very helpful. Well, thank you very much. I really appreciate it.

J. Heath Deneke: Mhmm. Thank you.

Operator: Our next question comes from Jason Gabelman with TD Cowen. Your line is open.

Jason Gabelman: Yes. Hey, thanks for taking my questions. First, just on the full year EBITDA guide, I am wondering if the second half guide contemplates any of the commodity strength we have seen the first half of the year?

William J. Mault: Yeah. So, good question. And thanks for joining, Jason. I would tell you that, you know, think about it and call it the seventies on crude and kind of a normalized NGL. We tend to update with strip, but, you know, if we are continuing to see kinda pressure on that crude price to the upside, that is another example, Jason, of what could push us toward the higher end of the range on our tightened range. Mhmm.

Jason Gabelman: Got it. Okay. And then going back to the Bakken and encouraging to see the additional rigs being added to your acreage. Do you have a sense of your customers' your producer customer sensitivity to commodity prices. it is obviously been a really volatile tape, but if oil prices kind of trend back down to 70 to 75, would you expect to sustain the same amount of, rig activity?

William J. Mault: Yeah. I do not think 70 to 75, Jason, really moves the needle from a development perspective. You know, we are putting capital to work out here. I tell you, our team does a lot of work on half cycle returns. And not at the kind of banker 10% type PVs. You know, we are talking 20, 30% returns we think are doable in, call it, the mid to high call it, fifties, 55 to maybe low sixties for that acreage. And you gotta remember, a lot of what they are doing up there are 3 mile laterals. So they are getting improved efficiencies on their breakevens and their DNC costs, which is really enabling this acreage and probably the lock step change of what we have seen over here out here over the past 3, 4 years. Mhmm.

Jason Gabelman: And then maybe 1 follow-up on the M&A landscape. Just curious on your thoughts on what you are seeing on bolt on opportunities, particularly in the in the Rockies region, the DJ and the Bakken?

J. Heath Deneke: Alright. Look. A general comment I would tell you, you know, we are pretty-- on the M&A front. We have got a lot of organic growth ahead. You know, we are we are certainly mindful of achieving our leverage target. And we are we have seen some M&A get a little frothy, frankly. We participated in some process that we stayed disciplined and let some assets go that, you know, we would have liked to have. But I think I definitely feel like it is you know, opportunistically, I mean, just given our portfolio and how many adjacent systems that we touch that are, you know, owned by private sponsors that, you know, are gonna be looking to get out. I think it is inevitable that we will find a good deal out there, but you know, frankly, you know, we are probably more excited about the organic growth profile and Double E and, you know, potentially some additional organic opportunities that we are in the midst of developing that provide growth beyond what we are even forecasting in our longer term outlook. All right. Thanks for the answers, guys.

William J. Mault: You bet. Thank you. Thanks for picking us up too.

Operator: Thank you for your participation. This does conclude the question and answer session, and you may now disconnect. Everyone, have a great day.