Notable Stock News to Watch: Summit Midstream Partners, LP (NYSE:SMLP)

Summit Midstream Partners, LP (NYSE:SMLP) stock revealed change of 7.12% away from 52-week low price and recently located move of -79.17% off 52-week high price. It has market worth of $251.21M and dividend yield of 38.21%. SMLP stock has been recorded -22.55% away from 50 day moving average and -52.22% away from 200 day moving average. Moving closer, we can see that shares have been trading -8.19% off 20-day moving average.

On Dec. 30, 2019, Summit Midstream Partners, LP (NYSE:SMLP) declared that it has entered into agreements with TPG, a global alternative asset firm (TPG), for the purchase of up to $80 million of redeemable, preferred interests in Summit Permian Transmission Holdco, LLC (Permian Holdco), a newly created, unrestricted subsidiary of SMLP that indirectly owns SMLP’s 70% interest in Double E Pipeline, LLC (Double E). In connection with the transaction, TPG will fund the next $80 million of Permian Holdco’s capital calls associated with Double E. The investment by TPG will be made by TPG Energy Solutions (TES), the firm’s energy-specific structured equity vehicle.

Upon receipt of Double E’s Federal Energy Regulatory Commission (FERC) 7(c) certificate, which is expected in the third quarter of 2020, SMLP plans to raise a non-recourse commercial bank financing to fund the substantial majority of the SMLP’s remaining capital obligations. In total, SMLP expects that the preferred equity financing and the bank financing will cover more than 70% of SMLP’s $350 million funding obligation associated with Double E.

Permian Holdco will pay a quarterly distribution rate of 7% on the outstanding preferred units and has the option to pay this distribution in-kind during the construction period. In addition, Permian Holdco and TPG have agreed to certain features that allow Permian Holdco to issue, and TPG to purchase, up to an additional $60 million of preferred units, under the same terms and conditions.

Permian Holdco has the right to optionally redeem TPG’s preferred interests at any time in whole or in part for cash over the next seven years, subject to a predetermined redemption price.  SMLP will continue to lead the development, permitting, and construction of Double E, and will operate the pipeline upon commissioning.

 The Basic Materials sector company, Summit Midstream Partners, LP noticed change of -7.67% to $3.01 along volume of 946914 shares in recent session compared to an average volume of 410.99K shares. The stock observed return of -14.00% in 5 days trading activity. The stock was at -2.59% over one month performance. SMLP’s shares are at -38.07% for the quarter and driving a -72.13% return over the course of the past year and is now at -70.05% since this point in 2018. 

 The average volatility for the week at 6.15% and for month was at 6.04%. There are 83.46M shares outstanding and 41.36M shares are floated in market. Right now the stock beta is 1.56. 

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