Capital allocation remains aggressive despite inconsistent cash generation, with capital expenditures reaching 47.5% of revenue in 2025Q4, which frequently outpaces operational cash flow.
| Cash from Operations | 124.44M | 133.59M | 61.77M | 126.91M | 98.74M | 165.1M | 198.59M | 161.74M |
| Operating CF Margin % | - | 23.77% | 14.38% | 27.65% | 26.72% | 41.11% | 51.79% | 36.37% |
| Operating CF Growth % | 676.67% | 116.27% | -51.33% | 28.52% | -40.19% | -16.86% | 22.78% | - |
| Net Income | -7.78M | -1.91M | -113.17M | -38.95M | -123.46M | -19.95M | 189.08M | -393.73M |
| Depreciation & Amortization | 131.24M | 115.1M | 101.59M | 123.7M | 119.99M | 120M | 119.07M | 111.57M |
| Stock-Based Compensation | 9.47M | 7.8M | 8.56M | 6.57M | 3.78M | 4.74M | 8.11M | 8.17M |
| Deferred Taxes | -1.63M | -699K | 146.83M | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -421K | 26.06M | -64.07M | 55.28M | 111.97M | 54.44M | -167.69M | 459.73M |
| Working Capital Changes | -20.35M | -12.76M | -17.96M | -19.69M | -13.54M | 5.87M | 50.02M | -24.01M |
| Change in Receivables | 8.79M | 9.85M | 3M | -3.35M | 284K | -178K | 35.35M | -5.47M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -3.34M | 5.55M | 1.12M | 4.48M | 2.25M | -89K | -4.06M | -96K |
| Cash from Investing | -89.42M | -163.15M | 487.06M | -74.76M | -226.56M | -165.73M | -140.57M | -90.87M |
| Capital Expenditures | -136.18M | -89.04M | -53.61M | -68.91M | -30.47M | -25.03M | -43.13M | -182.29M |
| CapEx % of Revenue | 23.95% | 15.84% | 12.48% | 15.02% | 8.24% | 6.23% | 11.25% | 40.99% |
| Acquisitions | -143.81M | -70M | 536.27M | -3.5M | -201.03M | -148.7M | -99.93M | -18.32M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 191.32M | -4.11M | 4.4M | -2.35M | 4.95M | 8M | 2.49M | 109.74M |
| Cash from Financing | -15.1M | 24.04M | -540.28M | -49.04M | 121.77M | 4.66M | -79.4M | -50.12M |
| Debt Issued (Net) | 177.59M | 49.24M | -502.02M | -27.68M | 142.72M | 25.45M | -19.4M | 145.75M |
| Equity Issued (Net) | 41.46M | 0 | 0 | 0 | 0 | 0 | -18.07M | 27.39M |
| Dividends Paid | -61.08M | -13.39M | -6.51M | -6.51M | -3.26M | 0 | 0 | -149.23M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -173.06M | -11.81M | -31.75M | -14.85M | -17.69M | -20.8M | -41.93M | -74.03M |
| Net Change in Cash | 19.92M | -5.52M | 8.55M | 3.11M | -6.04M | 4.03M | -21.38M | 20.75M |
| Free Cash Flow | -11.75M | 44.55M | 8.16M | 58M | 68.27M | 140.07M | 155.46M | -20.55M |
| FCF Margin % | -2.07% | 7.93% | 1.9% | 12.64% | 18.47% | 34.88% | 40.54% | -4.62% |
| FCF Growth % | 50.29% | 445.99% | -85.93% | -15.04% | -51.26% | -9.9% | 856.5% | - |
| FCF per Share | -0.95 | 3.67 | 0.77 | 5.61 | 6.79 | 20.78 | 33.01 | -3.74 |
| FCF Conversion (FCF/Net Income) | 1.51x | -70.09x | -0.55x | -3.26x | -0.80x | -8.28x | 1.03x | -0.76x |
| Interest Paid | 0 | 0 | 101.78M | 127.02M | 89.47M | 57.66M | 0 | 69.91M |
| Taxes Paid | 0 | 0 | 22K | 15K | 149K | 191K | 0 | 150K |
Persistent Cash Flow Volatility
As reported in recent financial filings, SMC's operating cash flow to net income ratio has exhibited extreme volatility, reaching a low of -29.82 in 2025Q2, which underscores a fundamental disconnect between accounting profitability and the actual cash-generating capacity of the company's gathering and boosting infrastructure assets.
The frequent divergence between net income and operating cash flow suggests that non-cash charges and working capital swings are significantly distorting the company's reported earnings. Investors should monitor whether this pattern reflects structural accounting complexities or an inability to convert service revenue into realized cash inflows.
Based on the provided quarterly data, SMC's free cash flow margins have fluctuated wildly, ranging from a peak of 22.9% in 2024Q1 to a trough of -22.9% in 2024Q2, indicating that the company's ability to generate surplus cash remains highly sensitive to capital expenditure cycles and divestiture timing.
The lack of a consistent positive free cash flow trajectory suggests that the business model is currently struggling to self-fund its operations and capital requirements. This inconsistency warrants further investigation into whether the company's capital allocation strategy is prioritizing growth over the preservation of core liquidity.
According to recent SEC filings, SMC's capital expenditure as a percentage of revenue spiked to 47.5% in 2025Q4, highlighting a heavy reliance on reinvestment that frequently outpaces the cash generated from operations and limits the company's ability to deleverage its balance sheet effectively.
The high capital intensity relative to revenue suggests that maintaining existing infrastructure in mature basins requires significant ongoing investment. This level of spending may indicate that the company is forced to prioritize maintenance and integrity programs over discretionary growth projects.
As indicated by the quarterly cash flow statements, working capital changes have been highly erratic, swinging from a $25.6M outflow in 2026Q1 to an $18.6M inflow in 2025Q4, which complicates the assessment of the company's underlying operational efficiency and short-term cash management capabilities.
These sharp fluctuations in working capital suggest that the timing of collections and payables is not yet optimized, potentially masking the true cash-generating potential of the core business. Analysts should monitor these swings to determine if they represent seasonal operational patterns or deeper issues with counterparty payment cycles.
Based on reported financial statements, SMC has utilized significant cash for dividends and acquisitions, such as the $142.5M net acquisition outflow in 2025Q4, even while operating cash flow remained inconsistent, suggesting a strategy that prioritizes inorganic growth and shareholder returns over immediate balance sheet fortification.
The decision to continue dividend payments despite negative free cash flow in several periods appears to place additional strain on the company's liquidity profile. Investors should evaluate whether these capital deployment choices are sustainable given the current volatility in operational cash generation.
Quick answers to the most common questions about buying SMC stock.
Summit Midstream Corp. (SMC) generated $133.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Summit Midstream Corp. (SMC) generated $44.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Summit Midstream Corp. (SMC) spent $89.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Summit Midstream Corp. (SMC) returned $13.4M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.