Kinetik Holdings Inc. · NYSE:KNTK
Kinetik — Q2 2024 Earnings Presentation
16 slides from Kinetik's earnings presentation, Aug 8, 2024
Slide 1: Second Quarter 2024 Results
Second Quarter 2024 Results August 7, 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 Strategic transactions and commercial successes have accelerated achievement of capital allocation priorities Recent Highlights Financial Results Strategic • Closed acquisition of Durango Permian, expanding system footprint into northern $109mm Eddy and Lea Counties, New Mexico Net Incom
Slide 4: 2Q24 Segment performance
2Q24 Segment performance Record quarterly processed gas volumes despite wellhead volume curtailments Midstream Logistics Pipeline Transportation Financial and activity results 2Q financial performance • 2Q24 Segment Adjusted EBITDA of $148mm (+7% YoY) (1) • 2Q24 Segment Adjusted EBITDA of $94mm (+25
Slide 5: Revised 2024 Guidance and assumptions
Revised 2024 Guidance and assumptions Updating 2024 Adjusted EBITDA(1) and Capital Expenditure(1)(2) Guidance Revised 2024 Financial Guidance 2024 Commodity Price Sensitivities(4) Revised Range Revised Midpoint % YoY(3) % Change in Potential Impact ($mm) ($mm) Commodity Price Input Price to Adj. EBI
Slide 6: Revised 2024E Adjusted EBITDA Guidance
Revised 2024E Adjusted EBITDA Guidance(1) Guidance revision reflects strong YTD performance, Durango acquisition, and commercial success Revised 2024E Adjusted EBITDA(1) ($mm) ~$0 to $35 $940 to $980 Key Drivers Midstream Logistics ~$35 $936 ~$30 • Durango Permian with expected annual $70mm to $75mm
Slide 7: Revised 2024E Capital Expenditures Guidance
Revised 2024E Capital Expenditures Guidance(1)(2) New Mexico capital projects drive meaningful 2025 volume and Adjusted EBITDA(1) growth 2024E Capital Expenditures(1)(2) ($mm) $260 to $300 Guidance Key Drivers • Capital spend for Kings Landing Cryo Complex • Gathering capital with New Eddy County ag
Slide 8: Our capital allocation framework
Our capital allocation framework Maximizes shareholder value while providing flexibility for opportunistic capital deployment 3.5x leverage target(1) • Outperformed leverage target(1) with the strategic transactions • Accelerates achievement of Investment Grade ratings $1bn Adjusted EBITDA target(1)
Slide 9: Kinetik at a glance
Kinetik at a glance ONE OF THE LARGEST MIDSTREAM APPROX. 90 COMPANIES IN THE DELAWARE BASIN CUSTOMERS Offices in Midland and Houston, TX INTERESTS IN OPERATES 7 MAJOR COMPLEXES (2) EQUITY INTERESTS 2.7 Bcfpd & OVER 4,600 MILES OF PIPELINE IN LONG-HAUL OF RESIDUE GAS TAKEAWAY INTERESTS IN ACROSS 8 CO
Slide 10: For more information
For more information: Leadership Board of Directors Sustainability
Slide 11: IK
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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 Six Months Ended June 30, June 30, 2024 2023 2024 2023(1) Net Income Including Noncontrolling Interests to Adjusted EBITDA (In thousands) Net income including noncontrolling interests (GAAP) $ 108,948 $ 71,668 $ 144,355 $ 75,967 Add back: Interest
Slide 14: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Six Months Ended June 30, 2024 2023 Reconciliation of net cash provided by operating activities to Adjusted EBITDA (In thousands) Net cash provided by operating activities $ 279,222 $ 231,047 Net changes in operating assets and liabilities 49,046 47,040 Interest expe
Slide 15: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023(1) Distributable Cash Flow(1) (In thousands) Adjusted EBITDA (non-GAAP) $ 234,403 $ 207,985 $ 467,962 $ 395,493 Proportionate EBITDA from unconsolidated affiliates (85,922) (74,481) (174,324) (
Slide 16: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation June 30, March 31, 2024 2024 (In thousands) Net Debt(1) Short-term debt $ 148,800 $ — Long-term debt, net 3,258,403 3,517,115 Plus: Debt issuance costs, net 28,597 29,885 Total debt 3,435,800 3,547,000 Less: Cash and cash equivalents 12,549 9,756 Net debt (non-GAAP)