Kinetik Holdings Inc. · NYSE:KNTK
Kinetik — Q1 2025 Earnings Presentation
17 slides from Kinetik's earnings presentation, May 8, 2025
Slide 1: First Quarter 2025 Results
First Quarter 2025 Results May 7, 2025
Slide 2: Forward looking statements
Forward looking statements This presentation 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 characterization
Slide 3: Key highlights
Key highlights Strong operational execution in the quarter and updated finance-related objectives Q1 Financial Results Operational and Commercial Construction progressed substantially on the 220 Mmcfpd Kings Landing Complex in Eddy County, NM; $250mm planned start-up on schedule with commissioning e
Slide 4: 1Q25 Segment performance
1Q25 Segment performance Volume growth and margin expansion drive solid results slightly exceeding internal expectations Processed Gas Volumes (Bcfpd) Midstream Logistics Adj. EBITDA(1) ($mm) Pipeline Transportation Adj. EBITDA(1) ($mm) 1.80 $174 $96 $96 $94 $94 1.74 $92 1.71 $159 $148 $150 $85 $146
Slide 5: Affirming 2025 Guidance and assumptions
Affirming 2025 Guidance and assumptions Key expectations and sensitivities reflected in full year guidance 2025 Financial Guidance(1) 2025 Commodity Price Sensitivities(4) Guidance Current % Change Potential Range ($mm) Price Input Strip Pricing in Guidance Impact to Commodity (Feb. 2025) (Apr. 2025
Slide 6: Adjusted EBITDA Guidance
Adjusted EBITDA Guidance(1,2) Strategic projects drive accelerated free cash flow growth in the second half of 2025 2025E Adjusted EBITDA(1) ~$1.2bn Key Drivers to 2025E Adjusted EBITDA Growth(1) $1.09bn – 1.15bn • High-teens growth in gas processed volumes • Kings Landing to start commissioning in
Slide 7: 2025E Capital Guidance
2025E Capital Guidance(1,2) Current capital projects drive meaningful volume and Adjusted EBITDA(3) growth over next several years $450mm - $540mm Maintenance 7% Maintaining limited, short cycle capital project backlog Delaware $495mm(4) North Delaware 71% South 22% 2025 Capital concentrated in the
Slide 8: Strategic capital investments drive growth in 2025 and beyond
Strategic capital investments drive growth in 2025 and beyond Highly accretive projects drive value creation and reinforce Kinetik’s unique and attractive footprint Kings Landing Complex • Adds 220 Mmcfpd of processing capacity, doubling Delaware North capacity • Anticipate plant at full capacity by
Slide 9: Our finance-related objectives
Our finance-related objectives Maximize shareholder value while providing flexibility for opportunistic capital deployment Base business supports ~10% compound annual Adjusted EBITDA(1) growth for the next 5 years(2) Current project backlog and contractual benefits provide strong visibility to mater
Slide 10: Kinetik at a glance
Kinetik at a glance ONE OF THE LARGEST PURE-PLAY MIDSTREAM COMPANIES SOLELY IN THE PERMIAN BASIN Offices in Midland and Houston, TX OPERATES 8 MAJOR COMPLEXES (2) EQUITY INTERESTS INTERESTS IN & OVER 4,800 MILES OF PIPELINE IN LONG-HAUL 550 Mbpd ACROSS 8 COUNTIES IN TX & NM PIPELINES OF NGL TAKEAWAY
Slide 11: For more information:
For more information: Board of Viewpoint with Leadership Sustainability Directors Dennis Quaid
Slide 12: IK
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Slide 13: Glossary of terms
Glossary of terms • Adjusted EBITDA (EBITDA) is defined as net income including non-controlling interests adjusted for interest, taxes, depreciation and amortization, impairment charges, asset write-offs, the proportionate EBITDA from unconsolidated affiliates, equity in earnings from unconsolidated
Slide 14: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended March 31, 2025 2024 Net Income Including Noncontrolling Interests to Adjusted EBITDA (In thousands) Net income including noncontrolling interest (GAAP) $ 19,262 $ 35,407 Add back: Interest expense 55,714 47,467 Income tax expense 2,567 3,787 Deprec
Slide 15: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended March 31, 2025 2024 Reconciliation of net cash provided by operating activities to Adjusted EBITDA (In thousands) Net cash provided by operating activities $ 176,830 $ 153,705 Net changes in operating assets and liabilities (14,878) 11,504 Interest
Slide 16: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended March 31, 2025 2024 (In thousands) Distributable Cash Flow(1) Adjusted EBITDA (non-GAAP) $ 250,017 $ 233,559 Proportionate EBITDA from unconsolidated affiliates (87,530) (88,402) Returns on invested capital from unconsolidated affiliates 63,337 77,
Slide 17: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation March 31, December 31, 2025 2024 (In thousands) Net Debt(1) Short-term debt $ 148,800 $ 140,200 Long-term debt, net 3,568,457 3,363,996 Plus: Debt issuance costs, net 26,543 26,004 Total debt 3,743,800 3,530,200 Less: Cash and cash equivalents 8,845 3,606 Net debt (n