Summit greenlights Double E expansion, targets $100M+ EBITDA by 2030
What's the deal? Summit Midstream CorporationDealroom has a profile for this one. Try Dealroom → has reached a final investment decision on a mainline compression expansion for its Double E natural gas pipeline in the Delaware Basin. The project, expected in service by the fourth quarter of 2028, is backed by a new long-term take-or-pay firm transportation agreement with an investment-grade shipper.
The numbers: The new 200 MMcf/d contract brings total contracted firm capacity on Double E to roughly 2.2 Bcf/d. SummitDealroom has a profile for this one. Try Dealroom → expects the expansion to lift its Permian segment adjusted EBITDA from about $37 million in 2026 to over $100 million by 2030 once fully subscribed.
What's the endgame? The expansion adds a bi-directional mainline compressor station, increasing forward-haul capacity to the Waha Hub by roughly 900 MMcf/d. Summit will invest about $100 million, net to its 70% interest, in the station, plant connections, and related infrastructure.
How it's funded: Summit converted a $50 million uncommitted accordion at Summit Permian TransmissionDealroom has a profile for this one. Try Dealroom → to committed, bringing total committed financing capacity to $100 million. That, combined with a previously announced term loan, fully funds the expected capital contributions.
Why now? A successful open season produced 550 MMcf/d of new long-term commitments, underpinning the decision to proceed. Summit is in talks to subscribe the remaining 450 MMcf/d of incremental capacity.
Chief executive officer Heath Deneke called the announcement "a significant milestone for Summit and Double E," pointing to "strong shipper interest" through the open season.
The signal: Beyond filling the new capacity, Summit is positioning for "demand-pull" growth from data center developments in Texas and New Mexico and connectivity with additional egress pipelines. Deneke said the system's bi-directional capability could "nearly double the outlook for the business in the years ahead."
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