Core Viewpoint - Kinetik Holdings Inc. (KNTK) is identified as a strong momentum stock with a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating potential for significant near-term gains [1][2][4]. Company Performance - KNTK shares have increased by 1.91% over the past week, while the Zacks Oil and Gas - Field Services industry has declined by 3.89% during the same period [3]. - Over the past month, KNTK's price change is 15.19%, significantly outperforming the industry's 0.07% [3]. - In the last quarter, KNTK shares rose by 23.37%, and over the past year, they have increased by 43.36%, compared to the S&P 500's gains of 7.36% and 38.52%, respectively [3]. Trading Volume - KNTK's average 20-day trading volume is 423,176 shares, which is a useful indicator for assessing price movements and market interest [3]. Earnings Outlook - In the past two months, one earnings estimate for KNTK has been revised upward, while none have been lowered, leading to an increase in the consensus estimate from $1.39 to $1.44 [4]. - For the next fiscal year, one estimate has also moved upwards with no downward revisions [4].

Company Overview - Kinetik Holdings Inc. (KNTK) is part of the Oils-Energy group, which consists of 242 companies and currently ranks 16 within the Zacks Sector Rank [1] - KNTK has a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperforming the market [1] Performance Metrics - Kinetik Holdings Inc. has seen a year-to-date performance increase of approximately 50.5%, significantly outperforming the average gain of 4.8% in the Oils-Energy sector [2] - The Zacks Consensus Estimate for KNTK's full-year earnings has risen by 20.9% over the past quarter, reflecting improved analyst sentiment [2] Industry Context - Kinetik Holdings Inc. operates within the Oil and Gas - Field Services industry, which includes 23 companies and currently ranks 168 in the Zacks Industry Rank [3] - The Oil and Gas - Field Services industry has experienced an average loss of about 8.1% year-to-date, highlighting KNTK's superior performance relative to its peers [3]

Core Insights - Diamondback Energy, Inc. (FANG) and Kinetik Holdings Inc. (KNTK) have entered into transactions with EPIC Midstream Holdings LP to strengthen the financial and operational aspects of EPIC Crude Holdings, LP, enhancing growth prospects and strategic alignment [1][2] Group 1: Transaction Details - FANG and KNTK acquired a 30% equity interest in the EPIC Crude pipeline system, with each now owning 27.5%, while EPIC Midstream retains a 45% stake [2] - The collaboration aims to enhance crude oil transportation capacity from the Permian Basin, a key oil-producing region [2] Group 2: Volume Commitments - FANG has increased its volume commitment to transport 200,000 barrels per day through EPIC Crude's pipeline, following its merger with Endeavor Energy Resources [3] - Long-term volume commitments from FANG and KNTK will extend from 2025 to 2035, representing over 33% of EPIC Crude's volume capacity, supported by minimum volume commitments (MVCs) [6][7] Group 3: Strategic Importance - EPIC Crude is positioned as a critical player in the Permian Basin, capable of transporting over 600,000 barrels per day, with contracts or MVCs secured for approximately 90% of its total volumes by 2025 [8] - The pipeline offers access to multiple markets, including Corpus Christi and the Dated Brent market, optimizing pricing for producers [9] Group 4: Financial Strength and Expansion - EPIC Crude's financial profile is improving, supported by increasing credit ratings and long-term contracts with investment-grade customers [10] - Potential expansion projects could enhance transport capacity with minimal capital investment, underwritten by contracts with FANG, KNTK, and other partners [11] Group 5: Governance and Future Outlook - FANG and KNTK's increased governance roles in the joint venture provide them with greater influence over EPIC Crude's strategic direction [13] - The series of transactions reinforces EPIC Crude's importance as a transportation link for crude oil producers in the Permian Basin, positioning it for long-term success [14][15]

Core Viewpoint - Kinetik Holdings Inc. (KNTK) has shown potential for growth following its acquisition of Durango Midstream, with an earnings beat and increased EBITDA guidance, presenting a strong investment opportunity [2][3][5]. Financial Performance - KNTK reported an adjusted EBITDA of $234.3 million for Q2, reflecting a 13% year-over-year increase and flat performance compared to Q1 [4]. - The company’s earnings profile remains consistent with a 60/40 split between gathering/processing and long-haul pipeline transportation [4]. - Full-year adjusted EBITDA guidance has been raised to a midpoint of $960 million, up from $932.5 million, indicating a 3% increase [5]. Growth Initiatives - KNTK has announced new service agreements and increased minimum volume commitments in Eddy and Lea Counties, expected to enhance cash flows and earnings growth in 2025 [6][7]. - The company is addressing natural gas processing capacity issues in the northern Delaware basin through the construction of Kings Landing I, projected to generate $70-$75 million in annual EBITDA starting Q1 2025 [8]. - Plans for a second processing plant, Kings Landing II, are underway, with a target in-service date of Q3 2026 [8]. Capital Expenditure - KNTK has doubled its capital expenditure budget to $260-$300 million, primarily to support the Kings Landing Complex and existing Durango assets [9][10]. - Approximately $100 million of the increased budget is allocated to the Durango acquisition, with additional funds directed towards new projects in New Mexico [10]. Valuation and Market Outlook - The revised earnings profile suggests a valuation of KNTK at 9.3x EV to EBITDA based on 2025 earnings estimates, which is considered attractive for a midstream company [14]. - A potential share price upside of 25% is projected, alongside a 7.3% dividend yield based on the anticipated growth trajectory [14][18].

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 ...

Monty Rakusen Thesis Kinetik Holdings (NYSE:KNTK) is a natural gas focused midstream company that operates in the Delaware basin of the Permian. The company recently announced Q1 earnings results, as well as a strategic acquisition of Durango Midstream to bolster its footprint in the Delaware Basin. Q1 earnings were reported at a 12% increase over Q4 2023 as a result of two new pipeline assets entering service. This earnings momentum is positioned to continue through 2026 through the roll up of Durango, the ...

These transactions solidify Kinetik's position in New Mexico and consolidate its value proposition as a pure- play midstream company within the Delaware Basin. U.S.-based Kinetik Holdings Inc. (KNTK) has announced a series of transactions aimed at expanding its operations in New Mexico and increasing its presence across the North Delaware Basin. Acquisition of Durango Permian LLC Kinetik has entered into an agreement to acquire Durango Permian LLC, expanding its footprint in Eddy and Lea Counties, New Mexic ...

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 March 31, 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) (State or other jurisdic ...

Financial Data and Key Metrics Changes - The company reported first quarter adjusted EBITDA of $234 million, a 25% increase year-over-year, driven by robust underlying volume growth and contributions from the Permian Highway Pipeline expansion and Delaware Link [36][43] - Processed gas volumes reached 1.53 billion cubic feet per day, reflecting a 13% growth year-over-year, although down less than 1% quarter-over-quarter due to planned maintenance and curtailments [36][43] - Adjusted distributable cash flow for the quarter was $155 million, with free cash flow at $108 million [43] Business Line Data and Key Metrics Changes - The Midstream Logistics segment generated an adjusted EBITDA of $143 million, up 20% year-over-year, primarily due to increased processed gas volumes [15] - The Pipeline Transportation segment reported an adjusted EBITDA of $96 million, a 32% increase year-over-year and a 12% increase quarter-over-quarter, attributed to contributions from Delaware Link and the PHP expansion [16] Market Data and Key Metrics Changes - Waha gas daily prices averaged negative $0.72 per MMBtu in March and April, impacting customer sales positively as they sold gas at Gulf Coast markets instead [39] - The company expects continued pressure on in-basin pricing until additional pipeline capacity is operational, but is well-positioned with egress from the Permian to Gulf Coast demand centers [40] Company Strategy and Development Direction - The company completed a system-wide front-end amine treating project, enhancing blending and treating services across its system [4] - A first-of-its-kind agreement with Infinium was established to dedicate the sale of captured carbon dioxide for the production of ultra-low carbon eFuels, indicating a focus on sustainability and new revenue streams [20][49] - The company is focused on expanding its market share in New Mexico through enhanced treating and blending capabilities [38] Management's Comments on Operating Environment and Future Outlook - Management anticipates volatile commodity prices in 2024, particularly for natural gas, but believes the company is well-positioned relative to peers [18] - There is an expectation of increased volumes in the second quarter, continuing through the year, driven by the completion of maintenance projects and customer development activities [19] - Management highlighted strong operational performance and recovery rates post-maintenance, which are expected to support growth [58][79] Other Important Information - The company has reduced greenhouse gas and methane emissions intensity by 12% and 34% respectively compared to 2021 levels, ahead of its 2030 targets [21][50] - The company executed an accounts receivable securitization facility for $150 million in April, which was used to pay down existing term loans [17][46] Q&A Session Summary Question: Full year guidance and Q1 performance - Management indicated that while it is early in the year, Q1 performance trends are positive and could lead to higher end guidance [52][53] Question: Updates on GCX expansion and greenfield projects - Management confirmed confidence in GCX expansion and emphasized the need for more egress capacity from the basin [55] Question: Growth opportunities and market share - Management noted ongoing discussions with customers for new gas packages and highlighted the importance of partnerships in capturing market share [30][60] Question: NGL solutions and third-party pipe expansions - Management discussed commitments to various NGL solutions and the potential for future barrels as contracts roll off [88] Question: Cadence of turn-in-line activity - Management expects a consistent volume ramp similar to previous years, with significant activity in the second and third quarters [90][121] Question: Alpine High curtailment and its impact - Management confirmed the return of volumes from Alpine High and its significance to overall G&P volumes [93] Question: M&A considerations - Management stated that while they evaluate various opportunities, they are currently focused on organic growth strategies [109][110]

KINETIK Forward looking statements This presentation contains projections for Kinetik, including with respect to Kinetik's adjusted EBITDA, capital expenditures, leverage, and processed gas volumes. Kinetik's independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the projections for the purpose of their inclusion in this presentation, and accordingly, have not expressed an opinion or provided any other form of assurance with respect thereto for the purpose of t ...