Summit Midstream Raises $42 Million in Private Placement with Tailwater Capital

Summit Midstream Corporation (NYSE: SMC) and its subsidiary Summit Midstream Partners, LP have entered into a securities purchase agreement with an affiliate of Tailwater Capital LLC, for a private placement of 1,351,351 shares of common stock at $31.08 per share, generating gross proceeds of $42 million. The price corresponds to Summit's closing price on March 30, 2026. The shares are subject to a six-month lock-up period. In a sector where transactions involving U.S. natural gas assets are accelerating, as illustrated by Duke Energy's $2.48 billion sale of its Tennessee gas network to Spire, Summit is focusing on balance sheet reinforcement.

Debt Reduction and Organic Growth Financing

The company states that net proceeds will be applied to reducing outstanding borrowings under its asset-based lending credit facility and funding organic growth capital projects across its operating areas. Summit reiterates its long-term leverage target of 3.5 times. The transaction was unanimously approved by the Audit Committee of the Board of Directors, composed solely of independent and disinterested directors.

Heath Deneke, President, Chief Executive Officer and Chairman of Summit, stated that the $42 million investment represents "a significant vote of confidence" in the company's outlook. He noted that the transaction provides Summit with the "financial flexibility to execute on its current pipeline of high-return growth projects" while continuing progress toward the 3.5 times leverage target.

Tailwater Capital Consolidates Its Reference Shareholder Position

Following the transaction, Tailwater Capital and its affiliated entities are expected to beneficially own approximately 39% of Summit's outstanding equity, up from a position already described as that of the company's "largest shareholder." Jason Downie, Co-founder and Managing Partner of Tailwater Capital, stated that this transaction accompanies Summit into "an exciting phase of organic growth execution" around its portfolio, which he says continues to benefit from "strong secular tailwinds" tied to U.S. natural gas and crude oil outlooks.

Summit is advised in the transaction by Troutman Pepper Locke LLP. Tall Oak Midstream Holdings and Tailwater Capital are represented by Kirkland & Ellis LLP. The securities have not been registered under the Securities Act of 1933 and were placed with an accredited investor as defined under Rule 501(a) of that Act.