NYSE$KNTK

Kinetik Holdings Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Kinetik reported strong inaugural quarterly results, completed the Altus Midstream Company and BCP Raptor Holdco LP business combination, and enhanced free cash flow.

Kinetik Holdings Inc. reported strong first-quarter results, driven by increased volumes across both the Midstream Logistics and Pipeline Transportation segments and higher commodity prices. The company generated Pro Forma Adjusted EBITDA of $191 million and net income of $21.4 million.

  • Completed the Altus Midstream Company and BCP Raptor Holdco LP business combination on February 22, 2022.
  • Secured two new gathering and processing agreements with large cap, investment grade counterparties for 360 MMcf/d, underpinned by minimum volume commitments.
  • Announced Permian Highway Pipeline expansion binding open season and anticipate a Gulf Coast Express expansion open season will soon follow.
  • Strong operating performance and financial discipline enhanced free cash flow, enabling the redemption of another 10% of the outstanding Series A Preferred Units.

Headline financials

Total Revenue

$257M

Previous: $34.1M+653.4%
EPS (adj)

$0.21

Previous: $0.01+2000.0%
Adjusted EBITDA

$141M

Previous: $65M+116.5%
Leverage Ratio

4

No prior period
Capital Expenditures

-$29.2M

No prior period
Free Cash Flow

-$7.85M

Previous: $22.5M-134.9%
Net Income

$21.4M

Previous: $22.5M-4.9%
Operating Income

$19.1M

Previous: $13M+46.1%
Gross Profit

-$120M

Previous: $34.1M-452.2%
Cash & Equivalents

$17.6M

Previous: $51.3M-65.6%
Total Assets

$6.01B

Previous: $1.84B+226.4%
Stock-Based Comp

$6.13M

No prior period

Revenue & EPS history

Kinetik · Revenue · Quarterly

$257M

Q1 2022+653.4%vs Q1 2021
Beat estimate in 11 of 12 quarters(92%)
ActualEstimate

Forward guidance

Kinetik expects to exceed the top end of its previously announced 2022 Guidance range and intends to update its 2022 Guidance in the second quarter.

Tailwinds

  • Expect to exceed the top end of Kinetik’s previously announced 2022 Guidance range.
  • Implied year on year EBITDA growth exceeds 15% at the high-end of Guidance.
  • Intend to update 2022 Guidance in the second quarter.
  • Secured two new gathering and processing agreements with large cap, investment grade counterparties for 360 MMcf/d, underpinned by minimum volume commitments.
  • Expect to undertake a comprehensive refinancing of its legacy indebtedness during the second quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+4.6%

Avg return

Earnings day

+6.3%

Avg return

5 days after

+11.0%

Avg return

30 days after

37%

13 / 35 earnings

Positive

+208.5%

Q3 2020

Best reaction

-15.3%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%+1.3%-6.7%
Q4 2025+8.0%+6.7%+11.7%
Q3 2025-8.0%-6.2%-1.2%
Q1 2025+5.0%+11.5%+9.2%
Q4 2024-4.1%-6.1%-12.3%
Q3 2024+12.9%+15.1%+16.4%
Q2 2024+2.2%+0.9%+9.0%
Q1 2024-0.6%+1.4%+1.7%
Q4 2023+6.5%+5.2%+20.2%
Q3 2023-3.1%-1.3%-2.8%
Q2 2023-2.4%+0.1%-6.5%
Q1 2023-7.0%+0.8%+11.1%
Q4 2022+1.6%+7.4%+5.5%
Q3 2022-5.7%-6.8%-14.7%
Q2 2022-2.4%-1.1%-9.5%
Q1 2022+5.1%+8.5%+23.6%
Q4 2021-6.0%-1.7%+4.6%
Q3 2021+1.4%+4.9%+5.9%
Q2 2021-1.2%+0.9%-1.2%
Q1 2021-2.8%+0.5%+2.2%
Q4 2020-0.6%-8.4%-4.5%
Q3 2020+208.5%+236.2%+402.1%
Q2 2020+18.0%+19.2%+5.0%
Q1 2020-0.8%-7.6%+43.9%
Q2 2019-15.3%-23.7%-44.9%
Q4 2019-14.8%-14.8%-66.3%
Q3 2019-4.3%+0.4%-16.1%
Q1 2019+1.2%-1.4%-10.9%
Q4 2018-9.3%-8.5%-3.6%
Q2 2018-9.3%-8.5%-3.6%
Q4 2017-9.3%-31.3%-26.5%
Q3 2018-0.6%
Q1 2018-0.9%
Q2 2017+0.4%
Q3 2017-0.1%
Q1 2017

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