Summit Midstream Partners sells Summit Midstream Utica to MPLX LP for $625M, reducing net leverage and planning to convert to a C-Corp.
Summit Midstream Partners (SMLP) shares increased by over 29% after announcing the sale of Summit Midstream Utica to a subsidiary of MPLX LP for $625 million in cash. The deal reduces Summit's net leverage by 1.5x to sub-4.0x, improving its credit profile and financial flexibility. Summit plans to seek approval from unitholders to convert to a C-Corp, aiming to enhance trading liquidity, expand the investor base, and optimize long-term tax consequences for unitholders.
March 22, 2024
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