Kinetik (US:KNTK)2025-11-06 22:01Financial Performance - Total operating revenues for Q3 2025 reached $463.97 million, a 17% increase from $396.36 million in Q3 2024[15] - Product revenue increased to $357.61 million in Q3 2025, up 23% from $290.42 million in Q3 2024[15] - Operating income for Q3 2025 was $19.79 million, a significant decrease of 73% compared to $72.87 million in Q3 2024[15] - Net income attributable to Class A Common Stock holders was $5.27 million in Q3 2025, down 80% from $25.76 million in Q3 2024[15] - The overall financial performance shows a robust growth trajectory, with net income doubling year-over-year[26] - For the three months ended September 30, 2025, the company recorded net income of $74.2 million, compared to $35.0 million for the same period in 2024, representing a 112% increase[28] - The company reported a net income of $15.55 million for the three months ended September 30, 2025, down 81% from $83.65 million in the prior year[154] Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2025, were $494.03 million, slightly up from $493.36 million in the same period of 2024[21] - Cash at the end of the period for September 30, 2025, was $7,737,000, a decrease of 62.2% from $20,438,000 at the end of September 30, 2024[23] - The company reported a net cash used in investing activities of $562.93 million for the nine months ended September 30, 2025[21] - Total liquidity as of September 30, 2025, was $883.5 million, including cash and cash equivalents of $7.7 million[189] - Net cash provided by operating activities increased by $0.7 million to $494.0 million for the nine months ended September 30, 2025, compared to $493.4 million for the same period in 2024[198] - Net cash provided by financing activities was $73.0 million for the nine months ended September 30, 2025, primarily from long-term debt issuance, compared to a net cash outflow of $411.5 million for the same period in 2024[200] Assets and Liabilities - Total assets increased to $7.20 billion as of September 30, 2025, compared to $6.81 billion at the end of 2024[19] - Long-term debt rose to $3.96 billion as of September 30, 2025, up from $3.36 billion at the end of 2024[19] - The company’s accumulated deficit decreased to $1.99 billion as of September 30, 2025, from $2.98 billion at the end of 2024[19] - The balance at September 30, 2025, was $4,400,882 million, with a notable change in various asset categories[26] - The fair value of consolidated debt as of September 30, 2025, was $4.19 billion, up from $3.52 billion as of December 31, 2024[80] Equity and Dividends - Cash dividends paid to Class A Common Stock amounted to $133,868,000, with a dividend rate of $2.25 per share[27] - The Company declared a cash dividend of $0.78 per share on October 15, 2025, payable to stockholders of record as of October 27, 2025[136] - The Company made cash dividend payments of $373.8 million to holders of Class A Common Stock and Common Units during the nine months ended September 30, 2025[201] Acquisitions and Investments - The company completed the acquisition of Durango, resulting in a total consideration of $423,200,000[27] - The Company completed the Barilla Draw Acquisition for $175.5 million, which included natural gas and crude gathering pipelines valued at $165.0 million and intangible right-of-way assets of $10.5 million[41] - The Durango Acquisition was consummated for an adjusted purchase price of approximately $785.7 million, with a potential earn-out of up to $75.0 million contingent on the completion of the Kings Landing Project[42] Segment Performance - Midstream Logistics segment generated $458.6 million in revenue for Q3 2025, a 17.1% increase from $391.3 million in Q3 2024[125][126] - Total segment operating revenue for Q3 2025 was $463.9 million, compared to $396.4 million in Q3 2024, reflecting a growth of 17%[125][126] - Segment Adjusted EBITDA for Midstream Logistics was $151.4 million in Q3 2025, up from $173.6 million in Q3 2024, indicating a decrease of 12.8%[125][126] Operating Expenses - General and administrative expenses accounted for over 78% of the Company's total expenses, amounting to $30.1 million in Q3 2025[122][125] - Operating expenses increased by $20.3 million, or 36%, to $76.1 million, with significant contributions from Durango's operations and the Kings Landing plant start-up[160] - Total accrued expenses as of September 30, 2025, amounted to $228.4 million, an increase from $186.7 million as of December 31, 2024[81] Future Outlook - Future outlook remains positive, with expectations for continued revenue growth driven by market expansion strategies[26] - New product developments and technological advancements are anticipated to enhance competitive positioning in the market[26] - Strategic acquisitions are being considered to bolster market presence and operational capabilities[26] Tax and Regulatory Matters - The effective tax rate for the three months ended September 30, 2025, was 6.66%, lower than the 8.99% rate in 2024, primarily due to tax impacts related to noncontrolling interests[109] - The company plans to adopt ASU 2023-09 in its Annual Report for the year ended December 31, 2025, which will enhance income tax disclosures[37] Share Repurchase and Stock Activity - The Company repurchased 2.4 million shares for a total cost of $100.0 million in Q3 2025[87] - A share repurchase program was approved, allowing up to $500 million in total repurchases of Class A Common Stock, with $321.7 million available as of September 30, 2025[203][204]