The following is a summary of the Kinetik Holdings Inc. (KNTK) Q1 2024 Earnings Call Transcript:
Financial Performance:
Kinetik reported Q1 adjusted EBITDA of $234 million, marking a 25% increase YoY due to underlying volume growth and contributions from new pipeline expansion projects.
Processed gas volumes hit 1.53 billion cubic feet per day, a 13% YoY growth.
The Midstream Logistics segment reported a 20% YoY increase in Q1 adjusted EBITDA to $143 million.
The Pipeline Transportation segment marked a 32% YoY increase in Q1 adjusted EBITDA to $96 million.
Business Progress:
Maintenance projects at Diamond Cryo East Toya and Pecos Bend processing facilities were completed, intended to improve plant recoveries and system efficiencies.
Kinetik finished a system-wide front-end amine treating project for enhanced blending and treating capabilities. This will allow acceptance of gas that previously didn't meet quality specifications.
Expansion into Lee County, New Mexico, resulted in volumes well above the expected threshold, positioning Kinetik for more market share.
The secondary offering completion boosted Kinetik's public float to approximately $1.5 billion and quadrupled their average daily trading volume.
A landmark deal with Infinium enables Kinetik to sell captured carbon dioxide for use in making ultra-low carbon eFuels, introducing a new revenue stream and pushing sustainability initiatives.
With project volumes expected to increase through the year, Kinetik anticipates growth opportunities in sour gas treatment and extraction.
Through an agreement with Infinium, Kinetik is turning its greenhouse emissions into a revenue stream at zero capital cost, and exploring similar opportunities.
Kinetik is focusing on TIL activity in Q2 with available space on the Permian Highway Pipeline (PHP) and increasing customer requests for assistance.
Both organic and inorganic growth opportunities are being considered, though execution of its current capital program remains a priority.
More details: Kinetik Holdings IR
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