Kinetik Holdings Inc. · NYSE:KNTK
Kinetik — Q4 2024 Earnings Presentation
22 slides from Kinetik's earnings presentation, Feb 27, 2025
Slide 1: 2024 Results & 2025 Guidance
2024 Results & 2025 Guidance February 26, 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: 2024 Year in review
2024 Year in review A transformational year of growth in asset footprint and financial flexibility Q1 Q2 Q3 Q4 Completed the trunkline into Acquired 420 Mmcfpd of Announced sanctioning of Announced strategic Lea County, NM in January, processing capacity in pre-FID work for Kings connector pipeline,
Slide 4: FY 2024 Financial results
FY 2024 Financial results Record financial results with 16% Adjusted EBITDA(1) growth YoY 2021 - 2024 Adjusted EBITDA(1) ~10% Adjusted EBITDA CAGR(1) $971mm Financial Metrics ($mm) 2024 $822mm $839mm $737mm Net Income(2) $244.2 Adjusted EBITDA(1) $971.1 Midstream Logistics(3) $614.1 % of Total Adjus
Slide 5: 4Q24 Segment performance
4Q24 Segment performance November underperformance driven by depressed in-basin natural gas prices Midstream Logistics Pipeline Transportation Financial and activity results 4Q financial performance • 4Q24 Segment Adjusted EBITDA of $150mm (+3% YoY)(1) • 4Q24 Segment Adjusted EBITDA of $92mm (+9% Yo
Slide 6: Key updates
Key updates Strong operational execution drives progress on strategic projects Strategic Operational and Commercial Financial Pipeline procurement and right of Integration of Barilla Draw assets Issued FY 2025 Adjusted EBITDA(1) way approval process commenced underway Guidance of $1.09bn to $1.15bn
Slide 7: Levered to strong natural gas fundamentals
Levered to strong natural gas fundamentals(1) Well-positioned to support continued basin growth and meet demand needs in the US Gulf Coast 6% 2024-2030 Permian Supply CAGR 5% 2024-2030 US Gulf Coast Demand CAGR Permian Dry Gas Production Permian NGL Production USGC Natural Gas Demand USGC Ethane and
Slide 8: Strategic capital investments drive growth in 2025 and beyond
Strategic capital investments drive growth in 2025 and beyond Highly accretive projects drive long-term value creation and attractive volume growth Kings Landing Complex • Adds 220 Mmcfpd of processing capacity, doubling Delaware North capacity • Anticipate plant at full capacity by year-end with hi
Slide 9: 2025 Guidance and assumptions
2025 Guidance and assumptions Key expectations and sensitivities reflected in full year guidance 2025 Financial Guidance 2025 Commodity Price Sensitivities(4) Range Midpoint % Change in Potential Impact ($mm) ($mm) Commodity Price Input Price to EBITDA(1) +15% Adjusted EBITDA(1) $1,090 - $1,150 $1,1
Slide 10: Adjusted EBITDA Outlook
Adjusted EBITDA Outlook(1) Execution on growth projects drives multi-year double-digit growth(2) 2025E Adjusted EBITDA(1) >$1.2bn $1.09bn – 1.15bn +15% YoY Key Drivers to 2025E Adjusted EBITDA Growth(1) Growth(2) • ~20% growth year-over-year in gas processed volumes across system $971mm • Kings Land
Slide 11: Well-positioned asset base offers a differentiated financial outlook
Well-positioned asset base offers a differentiated financial outlook Attractive historical and expected earnings growth at moderate Reinvestment Ratio(1) levels $1,120mm $971mm 16% 2023 – 2025E Adj. EBITDA CAGR(2,4) $839mm $531mm 44% $495mm 2023 – 2025E Reinvestment Ratio(1,2,3,4) $265mm 2.8x 2023 –
Slide 12: 2025E Capital Guidance
2025E Capital Guidance(1) Current capital projects drive meaningful volume and Adjusted EBITDA(2) growth over next several years $450mm - $540mm Maintenance 7% Delaware $495mm(3) North $15mm lower than the Includes up to $75mm of 71% Delaware midpoint of 2024 contingent consideration South Revised C
Slide 13: Investment efficiency
Investment efficiency Kinetik generates highly capital efficient Adjusted EBITDA(1) growth relative to peers 2025E - 2027E Capex Efficiency Ratio (Reinvestment Ratio / Adjusted EBITDA CAGR)(1,2,3) 21.2x Capex Efficiency Ratio measures a company’s earnings growth relative to expected capital investme
Slide 14: Our finance-related objectives
Our finance-related objectives Maximizes shareholder value while providing flexibility for opportunistic capital deployment Base business supports ~10% compound annual Adjusted EBITDA(1) growth for the next 5 years Required Reinvestment Ratio(2) lower than recent historical levels Opportunistically
Slide 15: 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 16: For more information:
For more information: Board of Viewpoint with Leadership Sustainability Directors Dennis Quaid
Slide 17: IK
IK
Slide 18: 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 19: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 Net Income Including Non-controlling Interests to Adjusted EBITDA (In thousands) Net income including non-controlling interests (GAAP) $ 16,224 $ 267,354 $ 244,233 $ 386,452 Add back
Slide 20: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Twelve Months Ended December 31, 2024 2023 Reconciliation of net cash provided by operating activities to Adjusted EBITDA (In thousands) Net cash provided by operating activities $ 637,346 $ 584,480 Net changes in operating assets and liabilities 43,401 4,057 Interes
Slide 21: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 Distributable Cash Flow(1) (In thousands) Adjusted EBITDA (non-GAAP) $ 237,474 $ 228,005 $ 971,118 $ 838,830 Proportionate EBITDA from unconsolidated affiliates (84,113) (81,139) (34
Slide 22: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 Net Debt(1) (In thousands) Short-term debt $ 140,200 $ 150,000 $ 148,800 $ — Long-term debt, net 3,363,996 3,279,689 3,258,403 3,517,115 Plus: Debt issuance costs, net 26,174 27,311 28,597 29,885 Total