NYSE$KNTK

Kinetik Holdings Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Kinetik reported strong Q4 2024 results despite operational challenges.

Kinetik Holdings Inc. posted Q4 2024 revenue of $385.7 million, reflecting an increase from the prior year. The company generated net income of $16.2 million and an adjusted EPS of $0.01. Adjusted EBITDA for the quarter stood at $237.5 million, with free cash flow of $32.5 million. The company faced temporary setbacks due to gas price volatility but remains on track for long-term growth, supported by strategic acquisitions and infrastructure expansion.

  • Total revenue increased to $385.7 million in Q4 2024.
  • Net income stood at $16.2 million, with adjusted EPS of $0.01.
  • Adjusted EBITDA reached $237.5 million, reflecting stable operations.
  • Free cash flow totaled $32.5 million, ensuring strong liquidity.

Headline financials

Total Revenue

$386M

Previous: $349M+10.6%
EPS (adj)

$0.01

Previous: $1.70-99.4%
Capital Expenditures

-$120M

Previous: $67.1M-279.0%
Free Cash Flow

$32.5M

No prior period
Net Income

$16.2M

Previous: $99.3M-83.7%
Operating Income

$23.7M

Previous: $60.4M-60.8%
Gross Profit

$75.3M

Previous: $91.8M-18.0%

Revenue & EPS history

Kinetik · Revenue · Quarterly

$386M

Q4 2024+10.6%vs Q4 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

Kinetik expects strong revenue growth in 2025, with Adjusted EBITDA guidance of $1.09 billion to $1.15 billion. The company remains focused on infrastructure expansion and strategic acquisitions to drive long-term profitability.

Tailwinds

  • Projected Adjusted EBITDA growth of 15% year-over-year.
  • Expansion of the Kings Landing Complex to boost processing capacity.
  • Increased investment in gas gathering and transportation assets.
  • Strong free cash flow supports continued dividend growth.
  • Continued reduction in leverage to enhance financial flexibility.

Headwinds

  • Potential gas price volatility impacting short-term profitability.
  • Higher capital expenditures projected at $450 million - $540 million.
  • Operational risks related to pipeline expansions and integrations.
  • Uncertainty around regulatory changes affecting midstream operations.
  • Dependency on commodity pricing for profitability improvements.

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 Q4 2024

Historical avgQ4 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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