Kinetik (US:KNTK)2021-08-08 16:13Financial Data and Key Metrics Changes - Altus reported net income of $74 million for Q2 2021, including a $31 million unrealized embedded derivative gain [23] - Adjusted EBITDA was $69 million, with growth capital expenditures around $3.6 million [23] - The company achieved cash flow positivity for the second consecutive quarter and declared a quarterly dividend of $1.50 per share [10][24] Business Line Data and Key Metrics Changes - Gathered volumes increased by 3% from the previous quarter, averaging 447 million cubic feet per day, with approximately 74% being rich gas [24] - Operating expenses have decreased for the eighth consecutive quarter, with a projected year-over-year reduction of at least 15% [19] - The gathering and processing business is expected to see higher volumes due to the flattening of decline at Alpine High [19] Market Data and Key Metrics Changes - The company has adjusted its gathered volume outlook upwards to 415 million to 430 million cubic feet per day, with rich gas percentage expected between 70% to 75% [25] - The performance of the DUCs (drilled but uncompleted wells) has exceeded expectations, contributing positively to volume forecasts [31][33] Company Strategy and Development Direction - The company is focused on efficiently refinancing preferred shares and maintaining a strong dividend payout [26] - Altus aims to fully utilize its asset base and explore growth opportunities, particularly in the context of increasing drilling activity in the Permian Basin [36] Management's Comments on Operating Environment and Future Outlook - Management noted that there are no lingering impacts from previous weather incidents, and operational uptime improved during the quarter [12][24] - The company remains vigilant regarding COVID-19 but has not experienced material impacts on operations [13] - The outlook for the year remains constructive, with expectations of outperforming across various metrics [27] Other Important Information - Altus was added to the Russell U.S. indices in June, enhancing its exposure to a broader range of investors [27] - The company celebrated two years without recordable injuries, highlighting its commitment to safety and environmental stewardship [15] Q&A Session Summary Question: Are there any growth opportunities not in the backlog that could stem natural G&P volume declines? - Management acknowledged that while DUC completions supported volumes, there is a flattening of the decline curve from existing production, which is encouraging [31][32] - Increased rig activity in the area is noted, and management is optimistic about future growth opportunities [32][34]