Kinetik Holdings Inc Stock Price, News & Analysis

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.

Kinetik Holdings (NYSE: KNTK) has completed its acquisition of Durango Permian's New Mexico Gathering and Processing System. This acquisition, funded through the divestiture of Kinetik's 16% equity interest in the Gulf Coast Express pipeline, significantly enhances Kinetik's presence in the Northern Delaware Basin. The transactions are immediately deleveraging, reducing the company's leverage ratio to 3.4 times. Updated 2024 guidance will be provided with the second quarter financial results release.

Kinetik Holdings (NYSE: KNTK) has completed the sale and transfer of its 16% equity stake in the Gulf Coast Express pipeline to an affiliate of ArcLight Capital Partners for $510 million upfront and an additional $30 million deferred cash payment contingent on a future capacity expansion project. The proceeds will be used for general corporate purposes, including acquiring Durango Permian and investing in a new 15-year gas gathering and processing agreement in Eddy County, New Mexico, which strengthens Kinetik’s operational presence in the region.

Kinetik Holdings Inc. (NYSE: KNTK) announced a series of strategic transactions worth $1 billion, including the acquisition of Durango Permian for $765 million, the divestiture of its 16% interest in Gulf Coast Express pipeline for $540 million, and a new agreement in Eddy County, New Mexico. The acquisition expands processing capacity, doubles pipeline mileage, adds over 60 new customers, and enhances Kinetik's position in the Delaware Basin. The transactions are expected to be over 10% accretive to free cash flow per share starting in the second half of 2025. Kinetik aims to reinvest proceeds efficiently and accretively into strategic assets.