Summit Midstream Partners LP (Summit Midstream Partners LP) Gross Margin % : 27.76% (As of Dec. 2023)

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What is Summit Midstream Partners LP Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Summit Midstream Partners LP's Gross Profit for the three months ended in Dec. 2023 was $35.3 Mil. Summit Midstream Partners LP's Revenue for the three months ended in Dec. 2023 was $127.3 Mil. Therefore, Summit Midstream Partners LP's Gross Margin % for the quarter that ended in Dec. 2023 was 27.76%.

Warning Sign:

Summit Midstream Partners LP gross margin has been in long-term decline. The average rate of decline per year is -9.2%.

The historical rank and industry rank for Summit Midstream Partners LP's Gross Margin % or its related term are showing as below:

SMLP' s Gross Margin % Range Over the Past 10 Years
Min: 24.23 Med: 37.85 Max: 45.45
Current: 26.79

During the past 13 years, the highest Gross Margin % of Summit Midstream Partners LP was 45.45%. The lowest was 24.23%. And the median was 37.85%.

SMLP's Gross Margin % is ranked worse than
51.84% of 926 companies
in the Oil & Gas industry
Industry Median: 27.905 vs SMLP: 26.79

Summit Midstream Partners LP had a gross margin of 27.76% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Summit Midstream Partners LP was -9.20% per year.

Summit Midstream Partners LP Gross Margin % Historical Data

The historical data trend for Summit Midstream Partners LP's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Summit Midstream Partners LP Gross Margin % Chart

Summit Midstream Partners LP Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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38.56

37.20

31.30

24.23

26.79

Summit Midstream Partners LP Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															23.87	24.73	23.12	30.65	27.76

Competitive Comparison of Summit Midstream Partners LP's Gross Margin %

For the Oil & Gas Midstream subindustry, Summit Midstream Partners LP's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Summit Midstream Partners LP's Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Summit Midstream Partners LP's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Summit Midstream Partners LP's Gross Margin % falls into.

Summit Midstream Partners LP Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Summit Midstream Partners LP's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	122.9	/	458.903
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(458.903 - 335.967)	/	458.903
	=	26.79 %

Summit Midstream Partners LP's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	35.3	/	127.318
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(127.318 - 91.975)	/	127.318
	=	27.76 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Summit Midstream Partners LP (NYSE:SMLP) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Summit Midstream Partners LP had a gross margin of 27.76% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Summit Midstream Partners LP Gross Margin % Related Terms

Thank you for viewing the detailed overview of Summit Midstream Partners LP's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

Summit Midstream Partners LP (Summit Midstream Partners LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Summit Midstream Partners LP (NYSE:SMLP) » Definitions » Gross Margin %

Comparable Companies

BPT MMLP DLNG CWPE GPP PXS IMPP OSG BANL SNMP TSX:ENB EPD WMB ET LNG OKE MPLX KMI TSX:TRP CQP

Traded in Other Exchanges

N/A

Address

910 Louisiana Street, Suite 4200, Houston, TX, USA, 77002

Website

http://www.summitmidstream.com

Summit Midstream Partners LP is a United States-based energy solutions provider involved in the oil and gas industry. The company develops, owns, and operates midstream energy infrastructure assets. The company conduct and reports operations in the midstream energy industry through five reportable segments: Northeast, Rockies, Permian, Piceance, and Barnett. It offers systems that gather natural gas from pad sites, wells, and central receipt points connected to the company's systems with provisions to supply to processing plants, contractors, and end-users. The Majority of its assets are located in the producing areas of unconventional resource basins in the continental United States. It derives the majority of its revenues from the Piceance.

Executives

James David Johnston	officer: See remarks below.	910 LOUISIANA STREET, SUITE 4200, HOUSTON TX 77002
Rommel M. Oates	director, other: See Remarks.	910 LOUISIANA STREET, SUITE 4200, HOUSTON TX 77002
William J. Mault	officer: See remarks below.	910 LOUISIANA STREET, SUITE 4200, HOUSTON TX 77002
Matthew B. Sicinski	officer: See remarks below.	910 LOUISIANA STREET, SUITE 4200, HOUSTON TX 77002
James J Cleary	director, other: See Remarks.	12 E. 49TH STREET, 39TH FLOOR, NEW YORK NY 10017
Marguerite Woung-chapman	director, other: See Remarks.	1001 LOUISIANA, HOUSTON TX 77002
Robert Joseph Mcnally	director, other: See Remarks.	625 LIBERTY AVENUE, SUITE 1700, C/O EQT CORPORATION, PITTSBURGH PA 15222
Christopher M Leininger	director, other: See Remarks.	11943 EL CAMINO REAL, SUITE 200, SAN DIEGO CA 92130
Francesco Ciabatti	director, other: See Remarks.	51 JOHN F. KENNEDY PARKWAY, SUITE 200, SHORT HILLS NJ 07078
J Heath Deneke	director, officer: See remarks below.	700 LOUISIANA STREET, SUITE 2550, HOUSTON TX 77002
James Lee Jacobe	director, other: See Remarks.	1790 HUGHES LANDING BLVD., SUITE 500, THE WOODLANDS TX 77380
Energy Capital Partners Ii-c (summit Ip), Lp	director, 10 percent owner	51 JOHN F. KENNEDY PARKWAY, SUITE 1250, SHORT HILLS NJ 07078
Energy Capital Partners Ii (summit Co-invest), Lp	director, 10 percent owner	C/O ENERGY CAPITAL PARTNERS II, 51 JOHN F. KENNEDY PARKWAY, SUITE 200, SHORT HILLS NJ 07078
Energy Capital Partners Ii-b Ip, Lp	director, 10 percent owner	51 JOHN F. KENNEDY PARKWAY, SUITE 1250, SHORT HILLS NJ 07078
Energy Capital Partners Ii, Llc	director, 10 percent owner, other: See Footnotes	51 JOHN F. KENNEDY PARKWAY, SUITE 1250, SHORT HILLS NJ 07078