Kinetik Holdings Reports Strong Q3 Results, Raises Guidance

Kinetik ( (KNTK) ) has released its Q3 earnings. Here is a breakdown of the information Kinetik presented to its investors.

Kinetik Holdings Inc. is a midstream energy company operating in the Delaware Basin, providing services such as gathering, transportation, compression, and processing of natural resources like natural gas and crude oil. The company reported record financial results for the third quarter of 2024, showcasing significant growth in net income and adjusted EBITDA, which increased by 94% and 23% year-over-year, respectively. Kinetik raised its full-year adjusted EBITDA guidance and increased its quarterly dividend, reflecting confidence in its financial performance.

Key highlights from Kinetik’s earnings report include a net income of $83.7 million and adjusted EBITDA of $265.7 million for the quarter. The company successfully increased its equity interest in EPIC Crude Holdings and announced strategic infrastructure projects, including a new pipeline to optimize gas processing capacity. Kinetik also made strides in sustainability by receiving EPA approval for its carbon sequestration plan, enabling the company to benefit from tax credits.

The company continues to focus on strategic expansions, including the construction of the Kings Landing Cryo I processing facility and new pipeline projects, expected to enhance operational efficiency and support future growth. Kinetik’s enhanced financial outlook, coupled with disciplined capital expenditure management, positions it well for continued success in the evolving energy landscape.

Looking ahead, Kinetik’s management remains optimistic about achieving the upper end of its revised EBITDA guidance range, driven by operational efficiencies and strategic partnerships. The company aims to maintain a balanced approach to capital allocation, ensuring both shareholder value and potential for organic and inorganic growth opportunities.