Summit Midstream intends to pay down $50 million of debt during 2020

By Devika Patel

Knoxville, Tenn., Feb. 28 – Summit Midstream Partners, LP plans to use an extra $60 million of annualized cash flow that it reallocated from quarterly distributions to de-lever in 2020.

The company plans to reduce approximately $50 million of debt during the year.

“Our decision to reduce the quarterly distribution by 56.5% to 12.5 cents per unit will enable us to incrementally retain over $60 million of annualized cash flow that we will be using to accelerate deleveraging and enhance our financial flexibility,” president and chief executive officer J. Heath Deneke said on the company’s fourth quarter and year ended Dec. 31, 2019 earnings conference call on Friday.

“Steps that we have already taken will enable us to reduce approximately $50 million of debt in 2020 and we have a lot more opportunities ahead of us to further improve the balance sheet,” he said.

Cash and cash equivalents were $32.34 million as of Dec. 31, 2019, compared to $4,345,000 as of Dec. 31, 2018.

Long-term debt was $1,470,299,000 as of Dec. 31, 2019, compared to $1,257,731,000 as of Dec. 31, 2018.

Summit, based in the Woodlands, Texas, is an owner and operator of midstream energy infrastructure assets.

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