Summit Midstream Corp. has authorized its first stock repurchase program, giving management the ability to buy back up to $35 million of its common stock.
The company said the program comes after it repaid all arrears on its Series A preferred stock and as it says its free cash flow profile and financial flexibility have improved. Summit said the board approved the plan as a way to support the secondary market for the shares and to use capital opportunistically when it sees value.
The repurchases may be made in the open market, through privately negotiated transactions, block purchases or other methods, including under a Rule 10b5-1 plan. Management will decide the timing and size of any purchases based on market and business conditions, the stock price, debt covenant compliance and other factors.
The program has no fixed expiration date and does not require the company to buy back any specific number of shares.
Heath Deneke, Summit’s president, CEO and chairman, said the authorization reflects the board’s confidence in the company’s financial position and the progress it has made over the past year in simplifying its balance sheet and strengthening its platform. The market has reacted to these announcements by moving the company's shares 10.32% to a price of $29.40. Check out the company's full 8-K submission here.
