Kinetik (US:KNTK)2021-11-06 10:20Financial Data and Key Metrics Changes - Altus Midstream reported net income of $50 million for Q3 2021, including a $4 million unrealized gain related to an embedded derivative [25] - Adjusted EBITDA was $70 million, with growth capital expenditures approximately $3 million [26] - The company generated free cash flow for the third consecutive quarter and declared a quarterly dividend of $1.50 per share [25][26] Business Line Data and Key Metrics Changes - Gas processing volumes increased by about 1% compared to the previous period, reflecting contributions from recently brought online DUCs at Alpine High [8] - Gathered volumes averaged 452 million cubic feet per day, with approximately 75% being rich gas [26] Market Data and Key Metrics Changes - The joint venture pipelines provided stable cash flow through minimum volume commitments, while liquids pipelines are positioned for volume growth as activity returns to the basin [7] - The new gas processing agreement with Apache includes modified fees that align with current market conditions, incentivizing new development activity [11][12] Company Strategy and Development Direction - The company aims to create a pure-play midstream company in the Permian Basin, focusing on growth and competition for third-party opportunities [12][15] - The combination with EagleClaw is expected to create the largest pure-play midstream company in the Permian Basin, enhancing operational capabilities and scale [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate significant free cash flow and maintain a strong dividend coverage ratio post-transaction [21][22] - The outlook for 2021 remains constructive, with expectations trending better than the midpoint for all guidance items [27] Other Important Information - The transaction with EagleClaw is projected to close in Q1 2022, pending regulatory approval [18] - The combined company is expected to achieve at least $50 million in annual EBITDA synergies with minimal capital spending [21] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded without further inquiries [29][30]