Kinetik Holdings Inc. · NYSE:KNTK
Kinetik — Q3 2024 Earnings Presentation
16 slides from Kinetik's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Results
Third Quarter 2024 Results November 6, 2024
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: What is new
What is new Strong YTD performance, strategic transactions and commercial success accelerating growth Recent Highlights Q3 Financial Results Strategic • Increased equity interest in EPIC Crude to 27.5% $84mm Net Income Operational and Commercial • NM assets operating at full capacity and strong perf
Slide 4: Premier Delaware Basin-wide platform with compelling scale
Premier Delaware Basin-wide platform with compelling scale Delivering on our vision of a fully connected super-system New Project Highlights Large diameter, high-pressure pipeline connector from Eddy County, Maljamar NM to Culberson County, TX Dagger Draw Kings >150 Mmcfpd of rich gas Landing(1) thr
Slide 5: 3Q24 Segment performance
3Q24 Segment performance Record quarterly results driven by processed gas volumes and Pipeline Transportation segment Midstream Logistics Pipeline Transportation Financial and activity results 3Q financial performance • 3Q24 Segment Adjusted EBITDA of $174mm (+24% YoY) (1) • 3Q24 Segment Adjusted EB
Slide 6: Revised 2024E Adjusted EBITDA Guidance
Revised 2024E Adjusted EBITDA Guidance(1) Guidance revision reflects increased ownership in EPIC Crude and business outperformance Revised 2024E Adjusted EBITDA(1) ($mm) >$1,000 $970 - $1,000 $960 Key Drivers Midstream Logistics • System outperformance following substantial maintenance overhauls in
Slide 7: 2024E Capital Expenditures Guidance
2024E Capital Expenditures Guidance(1)(2) Strong cost discipline gives confidence to tighten guidance range Revised 2024E Capital Expenditures(1)(2) ($mm) $270 - $290 Guidance Key Drivers • Capital spend for Kings Landing Processing Complex • Gathering capital with Eddy County project $125 - $165 $2
Slide 8: Our capital allocation framework: Now clearly in focus
Our capital allocation framework: Now clearly in focus Maximizes shareholder value while providing flexibility for opportunistic capital deployment 3.5x leverage target(1) • Outperformed leverage target(1) with the strategic transactions • Focused on achievement of Investment Grade ratings $1bn Adju
Slide 9: 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 7 MAJOR COMPLEXES (2) EQUITY INTERESTS INTERESTS IN & OVER 4,600 MILES OF PIPELINE IN LONG-HAUL 550 Mbpd ACROSS 8 COUNTIES IN TX & NM PIPELINES OF NGL TAKEAWAY
Slide 10: For more information:
For more information: Board of Viewpoint with Leadership Sustainability Directors Dennis Quaid
Slide 11: IK
IK
Slide 12: 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 13: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Net Income Including Noncontrolling Interests to Adjusted EBITDA (In thousands) Net income including noncontrolling interest (GAAP) $ 83,654 $ 43,131 $ 228,009 $ 119,098 Add back: In
Slide 14: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Nine Months Ended September 30, 2024 2023 Reconciliation of net cash provided by operating activities to Adjusted EBITDA (In thousands) Net cash provided by operating activities $ 493,356 $ 405,585 Net changes in operating assets and liabilities 24,981 24,604 Interes
Slide 15: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 Distributable Cash Flow(1) (In thousands) Adjusted EBITDA (non-GAAP) $ 265,683 $ 215,324 $ 733,644 $ 610,825 Proportionate EBITDA from unconsolidated affiliates (88,229) (78,585) (26
Slide 16: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation September 30, June 30, March 31, 2024 2024 2024 (In thousands) Net Debt(1) Short-term debt $ 150,000 $ 148,800 $ — Long-term debt, net 3,279,689 3,258,403 3,517,115 Plus: Debt issuance costs, net 27,311 28,597 29,885 Total debt 3,457,000 3,435,800 3,547,000 Less: Cas