10 Best Performing Energy Stocks in 2024

02. Summit Midstream Corporation (NYSE:SMC)

Year to date Share Price Gain: 102.01%

Number of Hedge Fund Holders: N/A

Summit Midstream Corporation (NYSE:SMC) stands out as a key player in the energy sector due to its extensive midstream infrastructure and strategic presence in major shale formations across the U.S. The company’s diverse operations, which include natural gas, crude oil, and water gathering systems, have supported its strong market performance in 2024, achieving a year-to-date share price gain of 102.01%. This impressive growth reflects Summit’s ability to navigate the energy landscape while capitalizing on operational efficiency and financial flexibility.

For the second quarter of 2024, Summit reported an adjusted EBITDA of $43.1 million and distributable cash flow of $11.7 million, showcasing its ability to generate steady cash flow despite a reported net loss of $23.8 million. Free cash flow came in at $2.7 million, further strengthening the company’s position. This financial stability allows Summit Midstream Corporation (NYSE:SMC) to pursue strategic acquisitions and debt reduction, aligning with its long-term goal of achieving a leverage target of 3.5x.

A major highlight for Summit this year was its successful reorganization from a master limited partnership (MLP) to a C-corporation, completed in August 2024. This move not only brings tax advantages but also makes Summit’s stock more attractive to a wider pool of investors. Additionally, Summit Midstream Corporation (NYSE:SMC) executed a $500 million revolving credit facility and issued $575 million in senior secured notes, both maturing in 2029, extending its debt maturity and providing enhanced liquidity.

On the operational front, Summit Midstream Corporation (NYSE:SMC) connected 34 new wells during Q2 2024, contributing to a total of 105 new wells year-to-date. The company’s oil price-driven segments, particularly in the Permian Basin, saw a 17.5% increase in volumes, driving EBITDA growth in this area. Meanwhile, Summit’s Rockies segment demonstrated resilience with increased liquids and natural gas throughput despite some operational downtime. With its robust asset portfolio, improved balance sheet, and strategic positioning, Summit Midstream Corporation (NYSE:SMC) is poised for continued growth, making it one of the best-performing energy stocks in 2024.