SMCMEDIUM SIGNALFINANCIAL10-K

SMC completed a significant operational transition period with substantially improved profitability and revenue growth, while managing through higher capital investment needs and reduced cash reserves.

The company has meaningfully reduced its net losses while growing revenue by roughly one-third, suggesting improved operational efficiency and potentially better market conditions. However, the substantial increase in capital expenditures alongside declining cash reserves indicates SMC is in an investment phase that requires careful monitoring of liquidity management.

Comparing 2026-03-16 vs 2025-03-11View on EDGAR →
FINANCIAL ANALYSIS

SMC demonstrated strong operational improvement with revenue growing 31% and net losses substantially reduced from the prior year. The company significantly increased capital spending, reflecting an investment growth phase, though this contributed to a notable decline in cash reserves by 59%. Overall, the financial picture shows a company emerging from a loss-making period with improved fundamentals but managing through a capital-intensive transition that has reduced near-term liquidity buffers.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+95.1%
-$122.2M→-$5.9M

Net income grew 95.1% — bottom-line growth signals improving overall business health.

Capital Expenditure
Cash Flow
+66.1%
$53.6M→$89.0M

Capital expenditure jumped 66.1% — major investment cycle underway; assess returns on deployment.

Cash & Equivalents
Balance Sheet
-59.4%
$22.8M→$9.3M

Cash declined 59.4% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Revenue
P&L
+30.8%
$429.6M→$562.1M

Strong top-line growth of 30.8% — accelerating demand or successful expansion into new markets.

Current Assets
Balance Sheet
-18.1%
$118.3M→$96.9M

Current assets declined 18.1% — monitor working capital adequacy and short-term liquidity.

Stockholders Equity
Balance Sheet
+16.8%
$467.8M→$546.2M

Equity base grew 16.8% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-03-16
PRIOR — 2025-03-11
ADDED
Tariffs and other trade measures could adversely affect our business, results of operations, financial position, and cash flows.
6 ORGANIZATIONAL CHART The following chart provides a summarized view of our legal entity structure as of December 31, 2025: 7 COMMONLY USED OR DEFINED TERMS 2015 Blacktail Release a 2015 rupture of our four-inch produced water gathering pipeline near Williston, North Dakota 2022 DJ Acquisitions the acquisition of Outrigger DJ Midstream LLC from Outrigger Energy II LLC, and each of Sterling Energy Investments LLC, Grasslands Energy Marketing LLC and Centennial Water Pipelines LLC from Sterling Investment Holdings LLC 2025 Senior Notes Summit Holdings and Finance Corp.
s 8.500% senior secured second lien notes due October 2026, which were fully repaid on October 15, 2024 2026 Secured Notes Asset Sale Offer the cash tender offer by Summit Holdings and Finance Corp.
United States of America unconventional resource basin a basin where natural gas or crude oil production is developed from unconventional sources that require hydraulic fracturing as part of the completion process, for instance, natural gas produced from shale formations and coalbeds; also referred to as an unconventional resource play Up-C tax structure a corporate structure that consists of a public C Corporation (PubCo) and an operating partnership (OpCo), which acts as the subsidiary.
Utica Sale the sale of Summit Utica to a subsidiary of MPLX LP for a cash sale price of $625.0 million, subject to customary post-closing adjustments VOC volatile organic compound(s) wellhead the equipment at the surface of a well, used to control the well s pressure; also, the point at which the hydrocarbons and water exit the ground 14 PART I ITEM 1.
Our integrated assets are strategically located in production basins, including the Williston Basin, DJ Basin, Barnett Shale, Piceance Basin, Permian Basin, and the Arkoma Basin.
We intend to optimize our capital structure in the future by reducing our indebtedness with free cash flow, and when appropriate, we may pursue opportunistic capital markets transactions, asset acquisitions (such as the Moonrise Acquisition), or asset divestitures with the objective of increasing long-term stakeholder value.
This may include value enhancing acquisitions (such as the Moonrise Acquisition) or opportunistic divestitures, re-allocation of capital to new or existing areas, and development of joint ventures (such as Double E) involving our existing midstream assets or new investment opportunities.
15 Recent Developments and Highlights The following is a brief listing of significant developments and highlights for the year ended December 31, 2025, and up through the filing date of this Form 10-K.
On March 10, 2025, we completed the acquisition of Moonrise Midstream, LLC (the Moonrise Acquisition ) from Fundare Resources Company, LLC for approximately $90.0 million, consisting of (i) a $70.0 million cash payment and (ii) the issuance of 462,265 shares of our common stock.
REMOVED
The failure to successfully integrate the business and operations of Tall Oak in the expected time frame may adversely affect the Company s future results.
to purchase up to $19.3 million aggregate principal amount of the outstanding 2026 Secured Notes, pursuant to which $13.6 million aggregate principal amount of the 2026 Secured Notes was tendered and validly accepted, which settled on April 26, 2024 2025 Senior Notes Summit Holdings and Finance Corp.
s 8.500% senior secured second lien notes due October 2026, which were fully repaid on October 15, 2024 2026 Unsecured Notes Summit Holdings and Finance Corp.
s 12.00% senior unsecured notes due October 2026, which were fully repaid on June 24, 2024 2026 Secured Notes Asset Sale Offer the cash tender offer by Summit Holdings and Finance Corp.
Our integrated assets are strategically located in production basins, including the Williston Basin, DJ Basin, Barnett Shale, Piceance Basin, Permian Basin and, following the Tall Oak Acquisition, the Arkoma Basin.
We intend to optimize our capital structure in the future by reducing our indebtedness with free cash flow, and when appropriate, we may pursue opportunistic capital markets transactions, asset acquisitions (such as the Tall Oak Acquisition), or asset divestitures (such as the Utica Sale or the Mountaineer Transaction) with the objective of increasing long-term stakeholder value.
This may include value enhancing acquisitions (such as the Tall Oak Acquisition) or opportunistic divestitures (such as the Utica Sale or the Mountaineer Transaction), re-allocation of capital to new or existing areas, and development of joint ventures (such as Double E) involving our existing midstream assets or new investment opportunities.
Recent Developments and Highlights The following is a brief listing of significant developments and highlights for the year ended December 31, 2024.
Subsequent to the October 2023 announcement of our strategic review, we executed the following transactions in order to maximize shareholder value: Summit Utica Sale.
On March 22, 2024, we completed the Utica Sale for a cash sale price of $625.0 million, subject to customary post-closing adjustments.
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