Kinetik Holdings Inc. · NYSE:KNTK
Kinetik — Altus Midstream Company — Q2 2021 Earnings Presentation
23 slides from Kinetik's earnings presentation, Aug 5, 2021
Slide 1: Investor Presentation
ALT U S M ID ST R EAM C O M PANY Investor Presentation August 2021 Nasdaq: ALTM
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 Commentary Simplified Structure ► Altus Midstream is a pure-play, Permian to Gulf Coast Public Investors Apache Corporation midstream C-corp C-corp governance ~21%(1) ~79%(1) No IDRs ► Interests in premier JV pipelines provide diversity of Altus Midstream Company stable
Slide 4: Financial Overview
Financial Overview 4
Slide 5: 2021 Financial Objectives
2021 Financial Objectives ► Ample liquidity and limited capital needs in 2021 and beyond ► Surety of cash flow to support dividend given stable nature of underlying assets ► DCF coverage for the year expected to be 1.9x(2) ► Balance sheet strength (covenant leverage <3x) and refinancing Preferred eq
Slide 6: Updates to 2021 Guidance
Updates to 2021 Guidance ►Increased ranges for Gathered Volumes, Adjusted EBITDA and Distributable Cash Flow, primarily attributable to higher than anticipated volumes for G&P and Shin Oak ►Growth Capital Investments trending towards the low end of the range Current 2021 Guidance Previous 2021 Guida
Slide 7: Near-Term Financing Plan
Near-Term Financing Plan ►Ample liquidity available to execute 2021 dividend and capital program ►Retained cash flow can be used to strengthen the balance sheet or reinvest into the business 3Q-4Q 2021 Sources and Uses of Capital ($ in millions, unless otherwise noted) Sources of Capital 3Q-4Q 2021E
Slide 8: ALTM: An Attractive Yield Compared to Peers
ALTM: An Attractive Yield Compared to Peers ►ALTM stock continues to trade at a yield higher than the median of its peers, indicating further potential value uplift ►Key potential upside catalysts: ► Incremental third-party opportunities through the G&P business ► Increased utilization on liquids pi
Slide 9: Asset Overview
Asset Overview 9
Slide 10: Joint Venture Pipelines Overview
Joint Venture Pipelines Overview Pipeline Map Commentary ► Altus owns equity interests in four joint venture pipelines ► All four pipelines provide takeaway capacity from the Permian Basin to the U.S. Gulf Coast ► All pipelines now in-service (PHP commenced full Katy in-service January 1, 2021) Mark
Slide 11: JV Pipeline Recent Developments
JV Pipeline Recent Developments ► Capacity of 2.0 Bcf/d is fully subscribed under long-term, binding agreements with Gulf Coast minimum volume commitments Express Pipeline ► GCX continues strong performance, with cash flow in-line with expectations ► Capacity of 2.1 Bcf/d is fully subscribed under l
Slide 12: Gulf Coast Express (GCX) Overview
Gulf Coast Express (GCX) Overview Pipeline Map Commentary ► Altus owns 16% of GCX, remaining ownership is 34% Kinder Morgan (Operator), 25% DCP and 25% Targa ► Project Statistics: Capacity: 2.0 Bcf/d Total Project Cost: $1.75 billion In-service: September 2019 Capacity is fully subscribed un
Slide 13: Permian Highway Pipeline (PHP) Overview
Permian Highway Pipeline (PHP) Overview Pipeline Map Commentary ► Altus owns ~27% of PHP, remaining ownership is ~27% Kinder Morgan (Operator), ~27% EagleClaw and 20% from an undisclosed anchor shipper ► Project Statistics: Capacity: 2.1 Bcf/d Total Project Cost: ~$2.2 billion Katy Market Access
Slide 14: Shin Oak Pipeline Overview
Shin Oak Pipeline Overview Pipeline Map Commentary ► Breviloba LLC owns the Shin Oak NGL Pipeline (Shin Oak) and is owned 67% by Enterprise Products Operating LLC and 33% by Altus ► Pipeline overview: ~658 miles of 24-inch pipeline connecting Orla and Waha to Mont Belvieu NGL fractionation and sto
Slide 15: EPIC Crude Overview
EPIC Crude Overview Pipeline Map Commentary ► Altus owns 15% of EPIC Crude, remaining ownership is 45% Ares Capital(1), 30% Chevron and 10% Rattler Midstream ► The project consists of ~700 miles of pipeline connecting the Permian and Eagle Ford Basins to Corpus Christi ► Current capacity of approxim
Slide 16: Gathering & Processing Overview
Gathering & Processing Overview Asset Map Asset Highlights ► Rich Gas Processing: 600 MMcf/d of capacity from three cryo trains online and in-service Cryos performing well, consistently able to run above nameplate capacity with high ethane recovery ► Lean Gas Treating / Compression: 400 MMcf/d o
Slide 17: A Clear Leader in ESG
A Clear Leader in ESG Key Initiatives at Operated Facilities Cryogenic Facilities ► Processing plant and compressor stations contain vapor recovery on all tankage ► Maintenance blowdown procedures in place to eliminate methane emissions ► Utilize leak detection at compressor stations ► Optimize use
Slide 18: Appendix
Appendix 18
Slide 19: State of the Art Cryogenic Processing – SRX Technology
State of the Art Cryogenic Processing – SRX Technology ► The cryogenic facilities utilize SRX technology to capitalize on better recoveries in ethane rejection mode ► Cleaner, more efficient operations from an ESG perspective ► Drives improved netbacks on third-party volumes ► Standardized units all
Slide 20: Joint Venture Pipelines Detail
Joint Venture Pipelines Detail Gulf Coast Express Permian Highway Shin Oak EPIC Crude Product Natural Gas Natural Gas NGL Crude Operator Kinder Morgan Kinder Morgan Enterprise Products EPIC Project Cost $1.75 billion ~$2.2 billion $1.5 billion $2.4-$2.5 billion Altus Ownership % 16% ~27% 33% 15% Ori
Slide 21: Non-GAAP Reconciliation – Adjusted EBITDA and DCF
Non-GAAP Reconciliation – Adjusted EBITDA and DCF The Company believes Adjusted EBITDA and DCF are useful because they allow the Company to more effectively evaluate its operating performance and compare the results of its operations from period to period and against its peers without regard to fina
Slide 22: Non-GAAP Reconciliation – Growth Capital
Non-GAAP Reconciliation – Growth Capital Management believes the presentation of capital investments and growth capital investments is useful for investors to assess Altus' expenditures related to our midstream capital activity. We define capital investments as costs incurred in midstream activities
Slide 23: 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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