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Kinetik Holdings Inc. (Symbol: KNTK) is a prominent midstream operator specializing in the gathering, processing, and transportation of natural gas and oil. Based in Houston, Texas, Kinetik exclusively serves the Permian Basin, a rich energy-producing region in West Texas. The company owns extensive infrastructure assets, including approximately 178 miles of natural gas gathering pipelines, 55 miles of residue gas lines, and 38 miles of natural gas liquids (NGL) pipelines. Additionally, Kinetik operates three cryogenic processing trains and an NGL truck loading terminal equipped with six lease automatic custody transfer units and eight NGL bullet tanks.
As a subsidiary of Apache Midstream LLC, Kinetik plays a crucial role in connecting energy producers to market hubs and other major pipelines. Its strategic partnerships and ownership stakes in various pipelines facilitate the transport of natural gas and NGLs to the Gulf Coast, thus granting the company access to export markets and international demand.
In recent developments, Kinetik has made significant strides in sustainability and innovation. One notable achievement is the agreement with Infinium, a leader in eFuels, to dedicate carbon dioxide (CO2) from Kinetik’s gas gathering and processing system in the Permian Basin for the production of ultra-low carbon electrofuels. This partnership underscores Kinetik’s commitment to reducing carbon emissions and pioneering energy transition efforts.
Kinetik’s robust operational framework and strategic initiatives position it as a key player in the midstream sector, providing comprehensive services that include gathering, transportation, compression, processing, and treating natural gas, NGLs, crude oil, and water. The company continually updates investors and stakeholders through announcements, operational updates, and press releases on its website, offering transparency and fostering trust in its business practices.
For more information, visit Kinetik's official website.
Permian Resources (NYSE: PR) has announced the sale of its natural gas and oil gathering systems in Reeves County, Texas to Kinetik Holdings for $180 million in cash. The sale includes recently purchased and legacy company-owned midstream infrastructure but excludes water infrastructure and surface acreage.
The transaction is expected to close in Q1 2025, subject to regulatory approval. The divestiture aims to streamline operations and enhance value for investors while allowing Permian Resources to increase its residue natural gas sales at Gulf Coast pricing, reducing exposure to in-basin Waha pricing. The company expects no significant impact on its cash operating costs.
Kinetik Holdings (NYSE: KNTK) has announced a definitive agreement to acquire natural gas and crude oil gathering systems from Permian Resources for $180 million in cash. The assets, primarily located in Reeves County, Texas, include approximately 60,000 gross operated acres dedicated under long-term, fixed-fee agreements.
The transaction features over 250 Mmcf/d of primarily owned electric compression with a private electric distribution system, and is expected to handle more than 150 Mmcf/d of gas gathered volumes and 25 Mb/d of crude gathered volumes in 2025. The assets are adjacent to Kinetik's existing Delaware South system and will be integrated post-closing. The deal is expected to close in Q1 2025, subject to customary conditions.
Kinetik Holdings reported strong Q3 2024 financial results with net income of $83.7 million, a 94% increase year-over-year, and Adjusted EBITDA of $265.7 million, up 23%. The company increased its 2024 Adjusted EBITDA guidance to $970-1000 million and tightened Capital Expenditures guidance to $270-290 million. Natural gas processing volumes reached 1.71 Bcf/d, a 15% increase year-over-year. Kinetik increased its quarterly dividend by 4% to $0.78 per share and expanded its ownership in EPIC Crude to 27.5%. The company announced plans for a new pipeline connecting Delaware North and South systems, capable of flowing over 150 Mmcf/d of rich gas.
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,
Kinetik Holdings Inc. (NYSE: KNTK) has announced that Todd Carpenter, General Counsel and Chief Compliance Officer, will retire from the company effective February 28, 2025. Mr. Carpenter will continue his current responsibilities and ensure a smooth transition until his retirement. After retiring, he will provide ongoing support to the company.
Kinetik has begun an internal and external search for Mr. Carpenter's successor and will announce the appointment in due course. Jamie Welch, Kinetik's President & Chief Executive Officer, praised Mr. Carpenter's almost 40-year legal career and his contributions to the company over the past seven years, expressing gratitude for his counsel, friendship, and dedicated service to Kinetik.
Diamondback Energy, Kinetik Holdings, and EPIC Midstream have announced transformative transactions for EPIC Crude Holdings. Key highlights include:
1. Diamondback and Kinetik acquired a 30% equity interest in EPIC Crude, now each owning 27.5%.
2. Diamondback increased its volume commitment to 200 MBpd.
3. Kinetik entered a new transportation arrangement with EPIC Crude.
4. Combined long-term volume commitments from partners represent over 33% of EPIC Crude's capacity.
5. EPIC Crude transports over 600 MBpd and has secured MVCs or contracts for ~90% of 2025 total volumes.
These actions aim to strengthen EPIC Crude's financial profile, reduce costs, and enhance returns. The company is positioned for potential expansion, with partners having an option for about one-third of the expansion capacity.
Kinetik Holdings Inc. (NYSE: KNTK) has published its 2023 Sustainability Report, highlighting significant progress in environmental, safety, and sustainability initiatives. Key achievements include:
• 83% reduction in Total Recordable Incident Rate and zero lost time incidents
• 32% reduction in methane emissions intensity since 2021
• 14% reduction in greenhouse gas emissions intensity since 2021
• Formation of New Energy Ventures group to explore clean energy opportunities
• Partnership with Infinium for ultra low-carbon e-Fuels production
These accomplishments were achieved despite a 25% increase in natural gas volumes since 2021. The company implemented various technologies and programs to reduce emissions, including upgrading pneumatics, electrifying compression, and enhancing leak detection. Kinetik remains committed to fostering a culture of safety, environmental responsibility, and community engagement.
Kinetik Holdings Inc. (NYSE: KNTK) reported strong financial results for Q2 2024, with net income of $108.9 million, up 52% year-over-year, and Adjusted EBITDA of $234.4 million, a 13% increase. The company revised its 2024 Adjusted EBITDA guidance to $940-$980 million and Capital Expenditures guidance to $260-$300 million. Kinetik completed the acquisition of Durango Permian, and divested its 16% stake in Gulf Coast Express pipeline. The company sanctioned pre-FID work for Kings Landing II, doubling processing capacity. Kinetik processed 1.58 Bcf/d of natural gas in Q2, a 7% increase year-over-year. The company declared a quarterly dividend of $0.75 per share and achieved a leverage ratio of 3.4x.
Kinetik Holdings Inc. (NYSE: KNTK) has announced its second quarter dividend and financial results timing. The company declared a cash dividend of $0.75 per share ($3.00 annualized) for Q2 2024, payable on August 7, 2024, to shareholders of record as of July 29, 2024. Kinetik will host its Q2 2024 results conference call on August 8, 2024, at 8:00 am CDT, with the earnings release issued after market close on August 7, 2024.
The company has implemented a Dividend Reinvestment Plan (DRIP) open to all shareholders. Details of the Plan are available on Kinetik's website and in its SEC Form S-3 filing. Shareholders can register for the DRIP online or by contacting Broadridge Corporate Issuers, , the Plan Administrator.
Morgan Stanley Energy Partners has completed the sale of Durango Permian to Kinetik Holdings. The transaction includes a mix of cash and equity, with additional payments contingent on the success of Durango Permian’s Kings Landing Gas Gathering and Processing Development. Durango Permian, a top player in gas gathering and processing in the Permian Basin, has been under Morgan Stanley’s management and achieved significant growth in New Mexico. The deal enhances Kinetik’s presence in the region, promising operational synergies and future growth, especially with the Kings Landing project. Financial advisors for Durango Midstream included Greenhill & Co. and Wells Fargo Securities, with Sidley Austin LLP as legal counsel.
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