Welcome to our dedicated page for Kinetik Holdings news (Ticker: KNTK), a resource for investors and traders seeking the latest updates and insights on Kinetik Holdings stock.
Overview
Kinetik Holdings Inc (NYSE: KNTK) is a fully integrated midstream operator that plays a pivotal role in the oil and gas sector. Specializing in gas and oil gathering, processing, and pipeline transportation, the company offers critical infrastructure solutions designed to connect upstream production with downstream markets. Leveraging extensive assets in the Permian Basin and beyond, Kinetik incorporates advanced gathering systems, processing facilities, and transportation pipelines with a strategic focus on operational efficiency and reliability. Keywords such as midstream, pipeline transportation, and decarbonization underscore its dual commitment to traditional energy infrastructure and evolving environmental considerations.
Business Segments and Core Services
Kinetik Holdings Inc operates through two principal segments that together form a comprehensive service portfolio:
- Midstream Logistics: This segment encapsulates a range of services including gas gathering and processing, crude oil gathering, stabilization, and storage services, as well as produced water gathering and disposal. These services are integral to maintaining the flow of energy products from production centers to processing and refining hubs.
- Pipeline Transportation: Kinetik’s pipeline transportation segment includes operations on multiple pipeline systems. The company not only operates its own pipelines but also holds substantial ownership stakes in critical pipeline assets. These pipelines connect the prolific regions of the Permian Basin with access points along the U.S. Gulf Coast, ensuring efficient and safe transportation of natural gas liquids (NGLs) and crude oil.
Operational Excellence and Infrastructure
The company’s infrastructure is a testament to its operational sophistication. Its network includes state‐of‐the‐art gathering systems, robust processing facilities, and strategically located pipelines that serve as lifelines between production areas and markets. By ensuring consistent and reliable service, Kinetik reinforces its position as an indispensable participant in the midstream industry. The company’s operations are characterized by a high degree of integration, allowing for streamlined service delivery across diverse energy products. Each element of its network is engineered to maximize efficiency while minimizing downtime and operational risk.
Sustainability and Decarbonization Initiatives
While rooted in traditional midstream operations, Kinetik Holdings Inc also demonstrates an active commitment to sustainability within the energy sector. A notable example is the company’s collaboration with an eFuels provider, which involves the strategic capture and sale of carbon dioxide (CO2) generated in its gas gathering and processing systems. This captured CO2 is repurposed as a valuable feedstock in the production of ultra-low carbon electrofuels (eFuels). Such initiatives not only reflect Kinetik’s responsiveness to evolving regulatory and market dynamics but also its role in fostering innovative decarbonization strategies. By participating in these sustainable endeavors, Kinetik illustrates how traditional midstream operations can integrate environmental stewardship into their business model without compromising core service delivery.
Kinetik Holdings has announced a two-for-one stock split aimed at enhancing liquidity and making the stock more accessible to investors. The split will occur through a stock dividend, providing one additional share for each existing share, effective June 8, 2022. Post-split, Kinetik will have approximately 135 million shares outstanding, with a planned quarterly dividend of $0.75 per share starting from the second quarter of 2022. This initiative reflects the company's strategy to improve shareholder value and attract new investors.
Kinetik Holdings Inc. announced strong financial results for Q1 2022, emphasizing robust operational execution following its merger with Altus Midstream on February 22, 2022. The company processed 1.11 Bcf/d of natural gas, generating Pro Forma Adjusted EBITDA of $191 million, distributable cash flow of $145 million, and free cash flow of $119 million. Kinetik also signed new agreements for 360 MMcf/d and plans expansions for the Permian Highway and Gulf Coast Express pipelines. The declared dividend is $1.50 per share, payable on May 17, 2022, with ongoing efforts to reduce outstanding preferred units.
Kinetik Holdings Inc. (NASDAQ: KNTK) announced a cash dividend of $1.50 per share for Q1 2022, amounting to an annualized total of $6.00. This consistent dividend will be paid on May 17, 2022 to shareholders of record by May 5, 2022. The company will also hold a conference call on May 11, 2022 to discuss its Q1 results, with the earnings release issued after market close on May 10, 2022. Additionally, Kinetik has implemented a voluntary Dividend Reinvestment Plan (DRIP) allowing shareholders to reinvest dividends into additional shares.
Kinetik Holdings announced the closing of a secondary offering of 4,000,000 shares of Class A common stock at $58.00 per share, fully exercising the underwriter’s option for an additional 521,739 shares. The offering was conducted by Apache Midstream LLC as the selling stockholder, with no shares sold by Kinetik itself, meaning the company received no proceeds. Notable financial institutions acted as joint lead managers for the offering. A registration statement for the securities was filed and declared effective by the SEC.
Kinetik Holdings Inc. (NASDAQ: KNTK) announced an upsized secondary offering of 3,478,261 shares of its Class A common stock at $58.00 per share, led by Apache Midstream LLC. The offering was increased from an original size of 2,500,000 shares due to high investor demand. Kinetik will not sell any shares and will not receive proceeds from the sale. A 30-day option for underwriters to purchase an additional 521,739 shares is included. The offering is managed by BofA Securities, J.P. Morgan, and Morgan Stanley among others.
Kinetik Holdings announced a secondary offering of 2,500,000 shares of Class A common stock by Apache Midstream LLC, a subsidiary of Apache Corporation. Kinetik will not sell any shares or receive proceeds from this offering. A 30-day option for underwriters to purchase an additional 375,000 shares is included. The offering is subject to market conditions and managed by BofA Securities, J.P. Morgan, and Morgan Stanley. This information is detailed in a prospectus supplement available upon request.
Kinetik Holdings has announced its 2022 Guidance, projecting Adjusted EBITDA between $770 million and $810 million, with approximately $25 million of cost synergies expected. Key developments include the completion of a super-system interconnect by June 2022 and plans for a full redemption of Series A preferred shares by year-end, supported by a 100% reinvestment of dividends from Core Shareholders. Capital expenditures are estimated at $125 million to $150 million, with a potential dividend increase of at least 5% starting in 2023.
Kinetik Holdings announced the completion of its business combination with Altus Midstream and BCP, creating an integrated midstream company.
Kinetik will trade on NASDAQ under the symbol KNTK starting February 23, 2022. The new structure includes 75% ownership by BCP unitholders and 5% by existing Altus shareholders. Apache Corporation's ownership is reduced to 20%. The company aims to achieve a strong financial profile with a focus on gas gathering in the Delaware Basin, targeting a net zero GHG emissions goal by 2050.
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