Deneke J. Heath, the Chairman, President, and CEO of Summit Midstream Corp (NASDAQ:NYSE:SMC), recently sold a total of $112,590 worth of common stock. The transactions occurred over three days, with 1,000 shares sold on each day. According to InvestingPro data, SMC has seen remarkable performance with a 109% gain over the past year, despite operating with significant debt and currently being unprofitable.
On December 6, Heath sold shares at a weighted average price of $37.78, with the transaction prices ranging from $37.29 to $38.00. On December 9, the shares were sold at an average price of $37.22, with transaction prices ranging from $36.50 to $37.85. The final sale on December 10 was at an average price of $37.59, with prices ranging from $36.70 to $37.99. The stock currently trades near its 52-week high of $40.75, and InvestingPro analysis suggests the stock may be slightly undervalued.
These sales were conducted under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell company stock, helping to avoid accusations of insider trading. Following these transactions, Heath retains ownership of 271,006 shares of Summit Midstream Corp. For deeper insights into SMC's valuation, financial health, and additional ProTips, subscribers can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Summit Midstream Corp has finalized a key agreement post-acquisition, enhancing its financial structure and operational capacity. The company has entered into a material definitive agreement guaranteeing $575 million in aggregate principal amount of 8.625% Senior Secured Second Lien Notes due in 2029. Additionally, Summit Midstream has gained shareholder approval for a significant stock issuance to Tall Oak Midstream Holdings, LLC, which involves the issuance of up to 7,471,008 shares of Class B common stock.
In a parallel development, the company announced its acquisition of Tall Oak Midstream Operating, LLC and its subsidiaries, a move that expands Summit's operational reach into the Arkoma Basin. This acquisition includes a $155 million upfront cash payment and approximately 7.5 million shares of Class B common stock.
Furthermore, Summit Midstream Partners, LP has undergone a corporate reorganization, transitioning from a master limited partnership to a C corporation. The company also launched a tender offer to repurchase up to $215 million of their 8.500% Senior Secured Second Lien Notes due 2026. Lastly, Summit Midstream reported strong Q1 results, with a net income of $132.9 million and adjusted EBITDA of $70.1 million.
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