Press release
Kinetik Announces Bolt-On Acquisition of Gas and Crude Gathering Systems in Texas Delaware Basin from Permian Resources
HOUSTON & MIDLAND, Texas--(BUSINESS WIRE)-- Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik” or the “Company”) today announced it has entered into a definitive
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[{"type":"text","content":" HOUSTON & MIDLAND, Texas--(BUSINESS WIRE)--\nKinetik Holdings Inc. (NYSE: KNTK) (“Kinetik” or the “Company”) today announced it has entered into a definitive agreement with Permian Resources Corporation (NYSE: PR) (“Permian Resources”) whereby Kinetik will acquire Permian Resources’ natural gas and crude oil gathering systems (the “Assets”) primarily located in Reeves County, Texas for $180 million of cash consideration (the “Transaction”). The Transaction provides a multi-stream opportunity for natural gas gathering, compression and processing, as well as crude gathering services for Kinetik.\n\n\nTransaction Highlights:\n\n\n\nApproximately 60,000 gross operated acres dedicated by Permian Resources under long-term, fixed-fee agreements for natural gas gathering, compression and processing and crude oil gathering services\n\n\n\nMore than 250 Mmcf/d of primarily owned electric compression with corresponding ownership of a private electric distribution system\n\n\n\nMore than 150 Mmcf/d of gas gathered volumes and 25 Mb/d of crude gathered volumes in 2025\n\n\n\nThe Transaction is highly competitive with Kinetik’s high-quality, organic backlog and meets our strict investment criteria\n\n\n\nAdditional upside with control of residue gas and natural gas liquids from the dedicated rich gas via system optimization and integration with existing assets\n\n\n\n“This investment opportunity reinforces our strategic partnership with Permian Resources, which is one of the most active and lowest cost operators in the Delaware Basin,” said Jamie Welch, Kinetik’s President & Chief Executive Officer. “We are excited to further expand our Delaware gas and crude systems with this natural fit, bolt-on acquisition. The Assets are located adjacent to our existing Delaware South system and will be integrated shortly following closing. The dedicated acreage includes highly economic inventory and shallow PDP declines, and with Permian Resources’ long-term development support, we expect attractive volume growth and long-term value creation for our stakeholders.”\n\n\nThe transaction is expected to close in the first quarter of 2025 following satisfaction of customary closing conditions, including under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.\n\n\nAbout Kinetik Holdings Inc.\n\n\nKinetik is a fully integrated, pure-play, Permian-to-Gu...