Kinetik (US:KNTK)2025-02-27 01:41Financial Performance - Kinetik reported Q4 2024 net income of $16.2 million and full year net income of $244.2 million[3]. - Adjusted EBITDA for Q4 2024 was $237.5 million, with a full year total of $971.1 million, reflecting a 16% year-over-year growth[5]. - Total operating revenues for Q4 2024 reached $385.7 million, a 10.6% increase from $348.9 million in Q4 2023[23]. - Product revenue for the full year 2024 was $1.063 billion, up 29.2% from $822.4 million in 2023[23]. - Adjusted EBITDA for Q4 2024 was $237.5 million, compared to $228.0 million in Q4 2023, reflecting a 4.9% increase[25]. - Distributable cash flow for the full year 2024 was $657.0 million, a 15.6% increase from $568.5 million in 2023[25]. - Operating income for Q4 2024 was $23.7 million, down from $56.1 million in Q4 2023, indicating a decrease of 57.8%[23]. - Total operating costs and expenses for Q4 2024 were $362.0 million, compared to $292.7 million in Q4 2023, representing a 23.7% increase[23]. Capital Expenditures and Guidance - Kinetik's capital expenditures for 2024 were $264.5 million, below the low end of the guidance range[5]. - The company announced 2025 guidance for Adjusted EBITDA between $1.09 billion and $1.15 billion, indicating a 15% growth year-over-year[7]. - Kinetik's 2025 capital guidance is set between $450 million and $540 million, including $75 million of contingent consideration[7]. Debt and Leverage - The company achieved a leverage ratio of 3.4x and a net debt to Adjusted EBITDA ratio of 3.6x by the end of Q4 2024[10]. - Total debt as of December 31, 2024, was $3,530,370,000, compared to $3,457,000,000 in the previous quarter, showing an increase of 2.1%[28]. - Net debt (non-GAAP) stood at $3,526,594,000 as of December 31, 2024, up from $3,436,562,000 in the previous quarter, reflecting an increase of 2.6%[28]. - Interest expense for the twelve months ended December 31, 2024, was $217,235,000, compared to $205,854,000 in 2023, representing an increase of 5.5%[26]. - The net debt to adjusted EBITDA ratio is calculated as net debt divided by last twelve months adjusted EBITDA, reflecting the company's leverage position[5]. Cash Flow and Investments - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $637,346,000, an increase from $584,480,000 in 2023, representing an increase of 9%[26]. - Adjusted EBITDA (non-GAAP) for the twelve months ended December 31, 2024, was $971,118,000, compared to $838,830,000 in 2023, reflecting a growth of 15.7%[26]. - Distributable Cash Flow (non-GAAP) increased to $657,014,000 in 2024 from $568,507,000 in 2023, marking a rise of 15.6%[26]. - Free Cash Flow (non-GAAP) significantly improved to $410,133,000 in 2024, up from $59,931,000 in 2023, indicating a substantial increase of 585.5%[26]. Strategic Initiatives - Kinetik completed the acquisition of Barilla Draw assets in January 2025, enhancing its natural gas and crude oil gathering systems[5]. - The company is advancing construction on the Kings Landing Complex, expected to start processing services in June 2025[13]. - Kinetik plans to explore a joint venture for a large-scale gas-fired power generation facility in Reeves County, Texas, with a potential Final Investment Decision in 2025[13]. Shareholder Information - The company has 157,712,645 issued and outstanding shares, including 59,929,611 Class A common stock and 97,783,034 Class C common stock[8]. - The company reported a Dividend Coverage Ratio of 1.26 for Q4 2024, based on total declared dividends of $123.1 million[7]. Performance of Affiliates - Proportionate EBITDA from unconsolidated affiliates was $346,666,000 in 2024, up from $306,072,000 in 2023, indicating a growth of 13.3%[26]. - Returns on invested capital from unconsolidated affiliates increased to $289,992,000 in 2024 from $272,490,000 in 2023, a rise of 6.4%[26]. Integration Costs - Integration costs for the twelve months ended December 31, 2024, were $5,826,000, compared to $1,015,000 in 2023, showing a significant increase of 474.5%[26].