Summit Midstream’s transformation into a crude oil-focused midstream company resulted in a sharp decline in natural gas traffic in the second quarter, as throughput fell 46% to 716 MMcf/d starting in the first quarter of 2024.

In March, Summit announced it was selling its Utica Shale assets to a subsidiary of MPLX for $625 million. Company management said the focus would be on oil-rich basins in the Permian Basin and Rocky Mountains. Summit no longer owns assets in the northeastern United States.

Summit completed the deal after initiating a strategic review process to increase shareholder value in 2023. In addition to moving away from its Northeast natural gas assets, the company also reorganized from an MLP to a C corporation.

Summit completed a refinancing of its capital structure, which includes a new $500 million asset-based credit facility and the issuance of $575 million of senior notes, both due 2029.

“Summit has made significant progress in executing its long-term strategy over the past four months,” said Heath Deneke, CEO, Chairman and President of Summit. “With this maturity extension and improved liquidity profile, Summit is well positioned with a strong balance sheet and additional financial flexibility to support the execution of its fundamental business plan, continue to pursue opportunistic bolt-on acquisitions and continue to leverage our strong free cash flow generation platform.”

In the second quarter, the Company’s liquids volumes increased 1.4% to 75 MMbbl/d compared to the first three months of the year.

Summit reported a net loss of $23.8 million for the quarter on adjusted EBITDA of $43.1 million.