KINETIK Third Quarter 2024 Results November 6, 2024 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 characterizations of future events or circumstances, including any underlying assumptions. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend ...

Financial Data and Key Metrics Changes - Kinetik reported its best quarter as a public company with adjusted EBITDA of $266 million, a 23% increase year-over-year [6][23] - Distributable cash flow reached $184 million, and free cash flow was $165 million, increasing more than three-fold year-over-year [23] - The company raised its 2024 adjusted EBITDA guidance to a range of $970 million to $1 billion, reflecting a 3% increase at the midpoint compared to previous guidance [28][20] Business Line Data and Key Metrics Changes - The Midstream Logistics segment generated adjusted EBITDA of $174 million, up 24% year-over-year, driven by contributions from New Mexico and strong performance in Texas [24] - The Pipeline Transportation segment reported adjusted EBITDA of $96 million, a 22% increase year-over-year, attributed to PHP expansion and increased ownership in Epic Crude [26] Market Data and Key Metrics Changes - Gas volumes processed were 1.71 billion cubic feet per day, representing a 15% growth year-over-year [7] - Negative gas prices persisted at the Waha Hub, averaging negative $1 per Mcf for the quarter, impacting wellhead gas volume curtailments [7] Company Strategy and Development Direction - Kinetik is focusing on connecting its north and south systems to optimize processing capacity and enhance operational flexibility [14][17] - The company is committed to a balanced capital allocation approach, emphasizing organic and inorganic growth opportunities while accelerating returns to shareholders [22][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the revised EBITDA target, citing strong execution and cost discipline [20][21] - The company anticipates a return of curtailed volumes from Alpine High and expects pricing relief at Waha, indicating a tight basin with ongoing demand for gas egress [72][73] Other Important Information - Kinetik received MRV Plan approval from the EPA for CO2 capturing and sequestration, which is expected to provide economic benefits starting in 2025 [10][11] - The company is finalizing a long-term transport agreement with EPIC, which has received a credit rating upgrade [9] Q&A Session Summary Question: How should we think about GMP fees and their impact on upcoming acreage dedications? - Management explained the distinction in average gross fees between different segments and emphasized the incremental margin capture from sour gas services [34][36] Question: What would be needed to open an expansion for Epic? - Management indicated that the decision to expand would depend on the commercial success of replacing shorter-term contracts with longer-term agreements [39][40] Question: What factors drove the outperformance this quarter? - Management attributed the outperformance to maintenance capital investments, operational efficiencies, and favorable market conditions [44][46] Question: What is the expected trajectory of CapEx for next year? - Management suggested a CapEx range of $250 million to $400 million for 2025, with a focus on growth projects [56] Question: What are the implications of potential setback rules in New Mexico? - Management clarified that the current discussions are part of an economic study and emphasized the importance of the oil and gas sector to the state's economy [78][79] Question: How should we think about further dividend growth? - Management reiterated a commitment to annual ratable dividend growth while balancing capital needs for growth [81]

Core Insights - Kinetik Holdings Inc. (KNTK) reported quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.52 per share, but showing an increase from $0.21 per share a year ago, resulting in an earnings surprise of -32.69% [1] - The company achieved revenues of $396.36 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 10.08% and up from $330.3 million year-over-year [2] - Kinetik Holdings has outperformed the S&P 500 with a stock price increase of approximately 49.7% since the beginning of the year, compared to the S&P 500's gain of 21.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $541.63 million, and for the current fiscal year, it is $1.44 on revenues of $1.6 billion [7] - The estimate revisions trend for Kinetik Holdings is favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Oil and Gas - Field Services industry, to which Kinetik Holdings belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges in overall industry performance [8] - Another company in the same industry, Archrock Inc. (AROC), is expected to report quarterly earnings of $0.28 per share, reflecting a year-over-year increase of 40%, with revenues projected at $292.95 million, up 15.6% from the previous year [9][10]

Kinetik Reports Record Third Quarter 2024 Financial and Operating Results and Again Increases Full-Year 2024 Adjusted EBITDA Guidance • Generated third quarter net income of $83.7 million, representing a 94% increase year-over-year, and Adjusted EBITDA of $265.7 million, a 23% increase in Adjusted EBITDA year-over-year 1 1 1 • Raising the Company's 2024 Adjusted EBITDA Guidance range to $970 million to $1 billion and tightening Capital Expenditures Guidance range to $270 million to $290 million 2 • Increase ...

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The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Kinetik Holdings Inc. (KNTK) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.Kinetik Holdings Inc. is one of 242 companies in the Oils-Energy group. The Oils-Energy group currently sits at #16 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank o ...

Diamondback Energy, Inc. (FANG) and Kinetik Holdings Inc. (KNTK) , an oil and gas storage and transportation company, in collaboration with EPIC Midstream Holdings LP have unveiled a series of transactions aimed at fortifying the financial foundation and operational efficiency of EPIC Crude Holdings, LP. These actions not only enhance the growth prospects of EPIC Crude (oil pipeline system) but also improve its long-term strategic alignment with FANG and KNTK. Through these transactions, FANG and KNTK acqui ...

Irina Starikova Thesis In my last quarterly update on Kinetik Holdings Inc. (NYSE:KNTK), I covered in detail the potential for the company's acquisition of Durango Midstream. The stock showed modest price gains in the two months that followed, just to be wiped out with the broader market decline during the first week of August. KNTK Price Performance (Seeking Alpha) This presents an opportunity as KNTK reported an earnings beat, reporting an EPS of $0.54/share, beating estimates by $0.18/share. This perform ...

Kinetik Holdings Inc. (KNTK) came out with a quarterly earnings of $0.54 per share versus the Zacks Consensus Estimate of $0.43. This compares to earnings of $0.41 per share a year ago. This quarterly report represents an earnings surprise of 25.58%. A quarter ago, it was expected that this company would post earnings of $0.44 per share when it actually produced earnings of $0.12, delivering a surprise of -72.73%. Over the last four quarters, the company has surpassed consensus EPS estimates twice. Kinetik ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 001-38048 KINETIK HOLDINGS INC. (Exact name of registrant as specified in its charter) Delaware 81-4675947 (Stat ...