Noble first to initiate on Summit Midstream, citing fruits of 'multiyear reset'
Investors may want to look at shares of Summit Midstream Corporation, a small-cap operator of oil and gas transportation and storage infrastructure, Noble Capital Markets argues in an initiation report on the company.
Noble became the first Wall Street firm to assign a rating to Summit’s shares, starting coverage with an “outperform” and pointing to recent acquisitions and potential strategic interest from larger industry players as sources of upside.
Details
Noble set a target price of $47 per share in its initiation note. Summit shares closed at $26.50 apiece on Friday, December 19, thus implying upside of about 77% from current levels.
Noble's rationale
Summit has largely completed a restructuring started in 2019, which has improved its financial position, simplified its corporate structure, and repositioned the company for longer-term growth, Noble said.
The company owns and operates oil and gas transportation and storage assets across several major U.S. basins. Summit acquired Tall Oak Midstream in December 2024 and Moonrise Midstream in March 2025 as part of a strategy to expand scale in its core operating regions. The company said the deals are expected to generate commercial and operational synergies.
Noble said the acquisitions could support long-term cash flow growth, noting Summit’s ability to connect new wells using existing infrastructure without significant additional capital spending.
The analysts also highlighted improving financial performance. In the third quarter of 2025, Summit’s revenue rose 43.4% year over year to $146.9 million, while adjusted EBITDA increased 44.8% to $65.5 million. The company reported net income of $5 million for the period, versus a loss a year earlier.
Noble added that Summit could eventually become an acquisition target for a larger midstream company seeking geographic expansion or vertical integration.
At the same time, the analysts cautioned that energy price volatility, competitive pressures, and environmental and regulatory risks could weigh on the company’s valuation.
