SCHEDULE: Tailwater Group Boosts Stake in Summit Midstream to 35.5%

Connect Midstream and its affiliates, including Tailwater Capital, have increased their beneficial ownership in Summit Midstream Corp to 35.5% through recent open market purchases.

Summary

• Connect Midstream, LLC, along with its affiliated reporting persons (Tailwater Energy Fund III LP, Tailwater Capital LLC, Jason H. Downie, and Edward Herring), collectively beneficially own 6,670,946 shares of Summit Midstream Corp's Common Stock.
• This represents 35.5% of the Issuer's outstanding Common Stock, calculated based on an assumed 18,766,331 shares outstanding.
• The beneficial ownership includes 6,524,467 shares issuable upon conversion of Common Units and Class B Shares, and 146,479 shares directly held by Connect Midstream.
• Connect Midstream made open market purchases of Common Stock on August 26, 27, and 28, 2025, totaling 146,479 shares.
• These purchases were financed with working capital.

Sentiment

Score: 7

Explanation: The increased stake by a sophisticated investor group, particularly through open market purchases, generally signals confidence in the company's valuation and future prospects. While not a direct endorsement of operational performance, it reflects a positive investment decision by a major shareholder.

Positives

• Increased stake by a significant investor group, potentially signaling confidence in the company's future.
• The purchases were made on the open market, indicating a direct investment decision at prevailing market prices.

Future Outlook

NA

Industry Context

This filing indicates continued investment by a private equity group specializing in midstream energy, suggesting ongoing interest and potential strategic involvement in the sector. The midstream sector, which involves the transportation and storage of oil and gas, often sees significant private equity activity due to its capital-intensive nature and long-term asset value.

Related Party Transactions

• The filing details the organizational structure of the reporting persons, showing Tailwater Energy Fund III LP as the sole member of Connect Midstream, and Tailwater Capital LLC's managing partners (Jason H. Downie and Edward Herring) having ultimate control. This establishes a group of related parties acting in concert regarding their investment in Summit Midstream Corp.

Stakeholder Impact

• Shareholders: The increased stake by a major investor group could be viewed positively, potentially indicating a belief in the company's long-term value and stability. It also solidifies a significant block of voting power.
• Management: The substantial ownership by Tailwater Capital and its affiliates may lead to increased influence on strategic decisions and corporate governance.

Next Steps

• The reporting persons undertake to provide full information regarding the number of shares purchased or sold at each separate price within the reported ranges upon request from the Issuer, security holders, or the SEC staff.

Key Dates

Recommendation

The filing indicates a significant increase in beneficial ownership by a key institutional investor group, Tailwater Capital and its affiliates, through open market purchases. This action suggests continued confidence in Summit Midstream Corp's valuation and long-term prospects from a major shareholder. However, as this is primarily an ownership disclosure and not a report on the company's operational or financial performance, a 'hold' recommendation is appropriate. It acknowledges the positive investor sentiment without providing a definitive 'buy' signal based solely on this filing, as further fundamental analysis of the company's financials and strategic direction would be required for a stronger recommendation.

Keywords

Summit Midstream Corp, Connect Midstream, Tailwater Capital, Schedule 13D, Beneficial Ownership, Common Stock, Midstream, Energy Investment, Shareholder Stake