NYSE$KNTK

Kinetik Holdings Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Kinetik reported record third quarter results, exceeding expectations with increased Adjusted EBITDA and raised full-year guidance.

Kinetik Holdings Inc. reported a strong third quarter in 2024, with a 94% increase in net income year-over-year and a 23% increase in Adjusted EBITDA. The company raised its full-year Adjusted EBITDA guidance and tightened its Capital Expenditures guidance. Kinetik also increased its quarterly cash dividend and expanded its equity interest in EPIC Crude Holdings, LP.

  • Net income increased by 94% year-over-year to $83.7 million.
  • Adjusted EBITDA increased by 23% year-over-year to $265.7 million.
  • Full-year Adjusted EBITDA guidance raised to $970 million to $1 billion.
  • Increased quarterly cash dividend to $0.78 per share, up 4% versus the prior quarterly dividend.

Headline financials

Total Revenue

$396M

Previous: $330M+20.0%
EPS

$0.35

Previous: $0.21+66.7%
Adjusted EBITDA

$266M

No prior period
Leverage Ratio

3.2

No prior period
Capital Expenditures

-$156M

Previous: -$246M+36.6%
Free Cash Flow

$110M

Previous: -$30.5M+460.6%
Net Income

$266M

Previous: $215M+23.4%
Operating Income

$72.9M

Previous: $38.4M+89.8%
Gross Profit

-$144M

Previous: -$147M+2.3%
Cash & Equivalents

$20.4M

Previous: $68K+29955.9%
Total Assets

$6.86B

Previous: $6.29B+9.1%
Stock-Based Comp

$15.2M

Previous: $12.5M+21.4%

Revenue & EPS history

Kinetik · Revenue · Quarterly

$396M

Q3 2024+20%vs Q3 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Kinetik is increasing its Adjusted EBITDA guidance range to $970 million to $1 billion and tightening its Capital Expenditures Guidance range to $270 million to $290 million.

Tailwinds

  • Employees are aligned on achieving the top end of the Adjusted EBITDA guidance range.
  • Outperformance year-to-date.
  • Large Lea County customer MVC step-up and treating services commencing.
  • Return of curtailed volumes during the fourth quarter.
  • Board of Directors’ decision to raise the quarterly cash dividend due to increased confidence in Kinetik’s outlook and the achievement of 3.5x leverage target.

Headwinds

  • Construction on the 200 Mmcf/d Kings Landing Cryo I is expected to be operational in the second quarter of 2025.
  • Nearly 170 Mmcf/d of wellhead gas volume curtailments on our system in response to low Waha Hub prices.
  • Construction on the low- and high-pressure gas gathering and processing project in Eddy County, New Mexico, which is expected to begin in December 2024.
  • New intrabasin large diameter, high-pressure rich gas pipeline connecting the west side of the Company’s system in Eddy County, New Mexico to Culberson County, Texas, with expected in-service in the first quarter of 2026.
  • Final investment decision as soon as possible given the processing capacity needed to facilitate producer development plans in the Northern Delaware.

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 Q3 2024

Historical avgQ3 2024

+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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