Kinetik Holdings Inc. · NYSE:KNTK
Kinetik — Q1 2024 Earnings Presentation
16 slides from Kinetik's earnings presentation, May 9, 2024
Slide 1: First Quarter 2024 Results
First Quarter 2024 Results May 8, 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 Excellent start to the year, both financially and operationally 1Q24 Financial update Maximizing Organic growth & Sustainability focus shareholder value system optimization Net Income of $35mm Substantially increased the Placed in-service New Mexico Reduced GHG emissions public float and
Slide 4: 1Q24 Segment performance
1Q24 Segment performance Robust quarterly results driven by Pipeline Transportation segment and PHP Expansion Midstream Logistics Pipeline Transportation Financial and activity results 1Q financial performance • 1Q24 Segment Adjusted EBITDA of $143mm (+20% YoY) (1) • 1Q24 Segment Adjusted EBITDA of
Slide 5: 2024 Guidance and assumptions
2024 Guidance and assumptions Reaffirming 2024 Adjusted EBITDA(1) and Capital Expenditure(2) Guidance 2024 Financial Guidance 2024 Commodity Price Sensitivities(4) Range Midpoint % YoY(3) % Change in Potential Impact ($mm) ($mm) Commodity Price Input Price to Adj. EBITDA(1) Adjusted EBITDA(1) $905 -
Slide 6: Stakeholder update
Stakeholder update Simple and transparent capital structure Capital structure Significant growth in public float and ADTV Public float (%) ADTV ($mm) 24% $1.25bn Revolving Credit Reduced overhang and significantly $28.6 Facility improved stock liquidity due June 2027 $1.0bn 16% (NYSE: KNTK) Term Loa
Slide 7: Our path to achieving our near-term financial priorities
Our path to achieving our near-term financial priorities Focused on Free Cash Flow generation, accelerating shareholder returns and financial flexibility(1) Kinetik’s action plan Significantly reduced 2024E capital program 3.5x leverage(2) / Investment Grade Meaningful 2024E Adjusted EBITDA growth(1
Slide 8: Our compelling value proposition
Our compelling value proposition Kinetik’s Adjusted EBITDA growth and Free Cash Flow yield rank as one of highest among C-Corp peers(1) 2024E Adjusted EBITDA Growth YoY(1)(2) 18% C-Corp MLP Kinetik 13% 12% 12% 9% 9% 7% Peer Median: 7% 6% 5% 5% 3% 0% 0% Peer A Peer B KNTK Peer C Peer D Peer E Peer F
Slide 9: Kinetik at a glance
Kinetik at a glance ONE OF THE LARGEST MIDSTREAM APPROX. 30 COMPANIES IN THE DELAWARE BASIN CUSTOMERS Offices in Midland and Houston, TX INTERESTS IN OPERATES 4 MAJOR COMPLEXES EQUITY INTERESTS IN 4.7 Bcfpd & OVER 2,200 MILES OF PIPELINE LONG-HAUL PIPELINES: OF RESIDUE GAS TAKEAWAY 55.5% OF PHP 550
Slide 10: For more information:
For more information: Leadership Board of Directors Sustainability
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 March 31, 2024 2023 Net Income Including Non-controlling Interests to Adjusted EBITDA (In thousands) Net income including noncontrolling interests (GAAP) $ 35,407 $ 4,299 Add back: Interest expense 47,467 69,308 Income tax expense 3,787 416 Depreci
Slide 14: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended March 31, 2024 2023 Reconciliation of net cash provided by operating activities to Adjusted EBITDA (In thousands) Net cash provided by operating activities $ 153,705 $ 119,591 Net changes in operating assets and liabilities 11,504 8,743 Interest ex
Slide 15: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended March 31, 2024 2023 Distributable Cash Flow (1) (In thousands) Adjusted EBITDA (non-GAAP) $ 233,559 $ 187,487 Proportionate EBITDA from unconsolidated affiliates (88,402) (71,867) Returns on invested capital from unconsolidated affiliates 77,213 67
Slide 16: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation March 31, 2024 December 31, 2023 Net Debt(1) (In thousands) Long-term debt, net $ 3,517,115 $ 3,562,809 Plus: Debt issuance costs, net 29,885 31,191 Total long-term debt 3,547,000 3,594,000 Less: Cash and cash equivalents 9,756 4,510 Net debt (non-GAAP) $ 3,537,244 $