Kinetik Increases Quarterly Cash Dividend and Announces Timing of Third Quarter 2024 Financial Results

Rhea-AI Summary

Kinetik Holdings Inc. (NYSE: KNTK) has announced a 4% increase in its quarterly cash dividend to $0.78 per share ($3.12 annualized) for Q3 2024. The dividend will be paid on November 7, 2024, to shareholders of record as of October 28, 2024. CEO Jamie Welch cited strategic transactions and business outperformance as reasons for the increase, stating they've reached their 3.5x leverage target earlier than expected.

The company will host its Q3 2024 results conference call on November 7, 2024, at 8:00 am CST, with the earnings release scheduled for November 6, 2024, after market close. Kinetik also reminded shareholders of its Dividend Reinvestment Plan (DRIP), which is open to all shareholders and can be accessed through the Broadridge website or by contacting Broadridge Corporate Issuers,

Positive

• Quarterly cash dividend increased by 4% to $0.78 per share ($3.12 annualized)
• Company achieved 3.5x leverage target ahead of schedule
• Business outperformance reported by CEO
• Commitment to annual ratable dividend growth

Negative

• None.

Insights

Financial Analyst

The 4% increase in Kinetik's quarterly dividend to $0.78 per share ($3.12 annualized) signals strong financial health and confidence in future cash flows. This move, driven by strategic transactions and business outperformance, demonstrates the company's commitment to shareholder returns.

Achieving the 3.5x leverage target ahead of schedule is a positive indicator of financial discipline. The company's focus on maintaining annual dividend growth while pursuing organic and inorganic growth opportunities suggests a balanced approach to capital allocation.

For investors, this dividend increase provides:

• Enhanced yield, potentially attracting income-focused shareholders
• A signal of management's positive outlook on future performance
• Indication of sustainable cash flow generation

The implementation of a Dividend Reinvestment Plan (DRIP) offers shareholders flexibility in reinvesting dividends, potentially compounding returns over time. However, investors should monitor the company's ability to maintain this dividend level alongside its growth initiatives and market conditions in the energy sector.

HOUSTON & MIDLAND, Texas--(BUSINESS WIRE)-- Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik” or the “Company”) today announced that its Board of Directors has declared an increase to its quarterly cash dividend to $0.78 per share, or $3.12 per share on an annualized basis, for the third quarter ended September 30, 2024.

The announced quarterly dividend represents a 4% increase versus the prior quarterly dividend and will be paid on Thursday, November 7, 2024 to shareholders of record as of market close on Monday, October 28, 2024.

“The strategic transactions closed earlier this year coupled with our business outperformance accelerated the achievement of our 3.5x leverage target and increased our confidence in the company’s outlook,” said Jamie Welch, Kinetik’s President & Chief Executive Officer. “As a result, we believe now is the appropriate time to increase the dividend and accelerate returns to our shareholders. Going forward, we remain committed to growing our business through compelling organic and inorganic opportunities while also maintaining annual ratable dividend growth.”

Kinetik will host its third quarter 2024 results conference call on Thursday, November 7, 2024 at 8:00 am Central Standard Time (9:00 am Eastern Standard Time) to discuss third quarter results. The Company will issue its earnings release after market close on Wednesday, November 6, 2024. The text of the earnings release, the accompanying presentation and link to the live webcast will be available on the Company’s website at www.ir.kinetik.com. A replay of the conference call will also be available on the website following the call.

Kinetik previously implemented a Dividend Reinvestment Plan (the “DRIP” or the “Plan”) open to all shareholders. A complete description of the Plan is included in the Company’s Form S-3 registration statement filed with the SEC on July 12, 2024 and is posted on the Company’s website at www.kinetik.com.

To participate, shareholders of record may register online by visiting the Broadridge website at shareholder.broadridge.com/KNTK or by contacting Broadridge Corporate Issuers, LLC, the Plan Administrator, by telephone toll free from inside the United States at 1-(877)-830-4936 or outside of the United States at 1-(720)-378-5591. Shareholders may also contact the Plan Administrator in writing at Broadridge Shareholder Services, Broadridge Corporate Issuer Solutions, LLC, PO Box 1342, Brentwood, NY 11717-0718. Please include a reference to Kinetik Holdings Inc. in all correspondence. Shareholders who own common stock through a broker should consult their broker regarding participation in the Plan.

About Kinetik Holdings Inc.

Kinetik is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation operating in the Delaware Basin. Kinetik is headquartered in Houston and Midland, Texas. Kinetik provides comprehensive gathering, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water. Kinetik posts announcements, operational updates, investor information and press releases on its website, www.kinetik.com.

Forward-looking statements

This news release includes certain statements that may constitute “forward-looking statements” for purposes of the federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “seeks,” “possible,” “potential,” “predict,” “project,” “prospects,” “guidance,” “outlook,” “should,” “would,” “will,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about the Company’s operations and financial profile, growth opportunities and the amount and timing of future shareholder returns. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2023. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future development, or otherwise, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241017778326/en/

Kinetik Investors:

(713) 574-4743 Alex Durkee

Website: www.kinetik.com

Source: Kinetik Holdings Inc.

FAQ

What is Kinetik's new quarterly dividend for Q3 2024?

Kinetik's new quarterly dividend for Q3 2024 is $0.78 per share, or $3.12 per share on an annualized basis.

When will Kinetik (KNTK) pay its Q3 2024 dividend?

Kinetik (KNTK) will pay its Q3 2024 dividend on Thursday, November 7, 2024, to shareholders of record as of market close on Monday, October 28, 2024.

When will Kinetik Holdings (KNTK) release its Q3 2024 earnings?

Kinetik Holdings (KNTK) will release its Q3 2024 earnings after market close on Wednesday, November 6, 2024.

How can shareholders participate in Kinetik's (KNTK) Dividend Reinvestment Plan?

Shareholders can participate in Kinetik's (KNTK) Dividend Reinvestment Plan by registering online at shareholder.broadridge.com/KNTK or by contacting Broadridge Corporate Issuers, , the Plan Administrator.