Kinetik Holdings Inc. · NYSE:KNTK
Kinetik — Altus Midstream Company — Q2 2019 Earnings Presentation
17 slides from Kinetik's earnings presentation, Aug 1, 2019
Slide 1: Altus Midstream Company
Altus Midstream Company August 2019
Slide 2: Disclaimer
Disclaimer FORWARD LOOKING STATEMENTS The information in this presentation and the oral statements made in connection therewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities E
Slide 3: Altus Midstream Overview
Altus Midstream Overview 3
Slide 4: Altus Midstream Summary Overview
Altus Midstream Summary Overview Commentary Simplified Structure ► In November 2018, Kayne Anderson and Apache formed a Public Investors Apache Corporation publicly-traded midstream C-corp – Altus Midstream Company ~21%(1) ~79%(1) (“Altus” or “Altus Midstream”) ▪ Real C-corp governance / no IDRs ► A
Slide 5: Gathering & Processing Overview
Gathering & Processing Overview Asset Map Asset Highlights ► Rich Gas Processing: ▪ 800 MMcf/d of current capacity: 400 MMcf/d of capacity from two cryo trains and 400 MMcf/d of MRU capacity ▪ Cryos performing well, consistently able to run above nameplate capacity with 99%+ ethane recovery ▪ Additi
Slide 6: Midstream Agreements with Apache
Midstream Agreements with Apache Commercial Agreements with Apache Area of Dedication ► The area of dedication encompasses a total of ~540,000 gross acres (as denoted by the red outline) ▪ Includes existing Apache acreage and future acreage acquired by Apache(1) ► Midstream services dedicated to Alt
Slide 7: State of the Art Cryogenic Processing – SRX Technology
State of the Art Cryogenic Processing – SRX Technology ► Altus is building SRX cryogenic facilities to capitalize on better ethane recovery and rejection ► SRX further maximizes processing economics via much higher propane recoveries during ethane rejection ► Drives improved netbacks on third party
Slide 8: Joint Venture Pipelines Overview
Joint Venture Pipelines Overview Pipeline Map Commentary ► Altus owns or has the option to participate in five joint venture pipeline projects ▪ 16% of KMI’s GCX (Exercised) Nat Gas ▪ 27% of KMI’s Permian Highway (Exercised) ▪ 33% of EPD’s Shin Oak (Exercised) NGLs Katy ▪ 50% of Salt Creek NGL (Opti
Slide 9: JV Pipeline Recent Developments
JV Pipeline Recent Developments ► Expected in-service in late September 2019 (7-10 days earlier than original October 1, Gulf Coast 2019 in-service date) with project cost estimated at ~$1.75 billion Express Pipeline ► Currently linepacking and ramping up compression to reach full capacity (Exercise
Slide 10: Financial Overview
Financial Overview 10
Slide 11: Financial Overview
Financial Overview ►Financing is secured for planned growth projects, underpinned by $825 million of incremental capital availability from preferred equity and revolver amendment ▪ All JV pipeline options have been exercised except Salt Creek NGL Line ▪ No need to issue common equity to finance curr
Slide 12: 2019 Updated Guidance
2019 Updated Guidance ► Currently expect 2019 Adjusted EBITDA of $70-85 million – compares to previous guidance of $75-95 million ▪ Change reflects lower than expected EBITDA contribution from EPIC and G&P business, partially offset by expected Shin Oak outperformance ▪ Still expect to exit Initial
Slide 13: Near-Term Financing Plan
Near-Term Financing Plan ►Altus has diversified funding sources to support its current growth plans this year ▪ All equity options except Salt Creek NGL Line have been exercised ►For 2020 and beyond, we are evaluating options for additional debt including exercise of the revolver accordion or access
Slide 14: Appendix
Appendix 14
Slide 15: Details on Joint Venture Pipelines
Details on Joint Venture Pipelines Gulf Coast Permian Salt Creek EPIC Crude Shin Oak Express Highway NGL Line Product Natural Gas Crude Natural Gas NGL NGL Operator Kinder Morgan EPIC Kinder Morgan Enterprise Products ARM Project Cost $1.75 billion $2.1 billion $2.1 billion $1.5 billion $100 million
Slide 16: Preferred Equity Financing & Revolver Amendment
Preferred Equity Financing & Revolver Amendment Preferred Equity Altus Midstream LP has issued $625 million of preferred equity ▪ Funded and closed on June 12 Cash distribution rate of 7% per annum, payable quarterly ▪ Flexibility to pay distributions in-kind for the first 6 quarters Redeemabl
Slide 17: Glossary of Terms
Glossary of Terms ► Adjusted EBITDA is defined as net income (loss) including noncontrolling interest before financing costs (net of capitalized interest), net interest expense, income taxes, depreciation, and accretion and adjusting for such items, as applicable, from income from equity method inte
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