Summit Midstream Raises $42 Million in Private Equity Placement

Affiliate of Tailwater Capital invests to support Summit's growth initiatives and debt reduction

Mar. 31, 2026 at 10:18pm

Got story updates? Submit your updates here. ›

Summit Midstream Corporation announced a $42 million private placement of its common stock to an affiliate of Tailwater Capital LLC. The investment will strengthen Summit's balance sheet and provide capital to fund strategic growth projects and general corporate purposes, including debt reduction.

Why it matters

The equity issuance represents a significant vote of confidence in Summit's outlook from its largest shareholder, Tailwater Capital. The additional capital will allow Summit to execute on its current pipeline of high-return growth projects and make progress towards its long-term leverage target, positioning the company for continued success in the midstream energy sector.

The details

Under the securities purchase agreement, Summit will issue 1,351,351 shares of its common stock at $31.08 per share to the Tailwater affiliate. The $31.08 price per share matches the closing price as of March 30, 2026. The shares are subject to a 6-month lock-up period. Summit intends to use the net proceeds to reduce borrowings under its credit facility and fund organic growth capital projects.

  • The transaction was announced on March 31, 2026.
  • The shares issued are subject to a 6-month lock-up period.

The players

Summit Midstream Corporation

A value-driven corporation focused on developing, owning and operating midstream energy infrastructure assets in major U.S. shale basins.

Summit Midstream Partners, LP

A subsidiary of Summit Midstream Corporation.

Tailwater Capital LLC

A Dallas-based energy and infrastructure private equity firm that is Summit's largest shareholder.

Heath Deneke

President, Chief Executive Officer and Chairman of Summit Midstream Corporation.

Jason Downie

Co-founder & Managing Partner at Tailwater Capital.

Got photos? Submit your photos here. ›

What they’re saying

“We are pleased to expand our relationship with Tailwater Capital through this equity issuance. This $42 million investment represents a significant vote of confidence in our company's outlook and provides us with financial flexibility to execute on our current pipeline of high-return growth projects while continuing to make progress towards achieving our long-term 3.5x leverage target.”

— Heath Deneke, President, Chief Executive Officer and Chairman of Summit Midstream Corporation

“As Summit's largest shareholder, we are excited to continue to provide support as the Company enters an exciting phase of organic growth execution around its portfolio, all of which continue to benefit from strong secular tailwinds for U.S. natural gas and crude oil outlook. Summit remains well-positioned to build momentum around its recently announced growth projects and provide best-in-class infrastructure solutions to its customer base.”

— Jason Downie, Co-founder & Managing Partner at Tailwater Capital

What’s next

Summit intends to use the net proceeds from the private placement to reduce borrowings under the Company's asset-based lending credit facility and fund organic growth capital projects across its operating areas.

The takeaway

This equity raise from Summit's largest shareholder, Tailwater Capital, demonstrates confidence in the company's strategic direction and growth prospects within the midstream energy sector. The additional capital will strengthen Summit's balance sheet and provide financial flexibility to execute on its current slate of high-return projects, positioning the company for continued success.