On November 8, 2023, Kinetik Holdings Inc (KNTK, Financial) released its financial results for the third quarter ended September 30, 2023. The company reported a net income of $43.1 million and an Adjusted EBITDA of $215.3 million. Processed gas volumes reached 1.49 Bcf/d, marking a significant 23% increase compared to the same period last year. Despite facing weather-related challenges and unexpected downstream pipeline outages, Kinetik demonstrated resilience and operational efficiency.
Financial Highlights and Achievements
Kinetik Holdings Inc (KNTK, Financial) declared a dividend of $0.75 per share for the quarter, with an annualized rate of $3.00 per share. The company exited the quarter with a Leverage Ratio of 4.0x and a Net Debt to Adjusted EBITDA Ratio of 4.4x. Notably, Kinetik generated Free Cash Flow of $36.8 million, signaling the end of the company's elevated capital intensity phase for its 2023 growth Capital Expenditure program. Additionally, the company has hedged approximately 25% of its 2024 commodity-linked gross profit exposure.
Operational and Strategic Developments
President & CEO Jamie Welch commented on the company's progress, stating,
2023 continues to be a seminal year for our Company as we execute on our capital program that underscores our long-term strategic vision."Kinetik has made significant strides in its capital program, with construction continuing on its expansion into Lea County, New Mexico, and the completion of the Delaware Link pipeline. These projects, along with the nearing completion of the Permian Highway Pipeline (PHP) expansion, are set to enhance Kinetik's service offerings to Delaware Basin producers.
Financial Tables Summary
The financial tables provided in the earnings release offer a detailed view of Kinetik's performance. The company's operating revenues for the three months ended September 30, 2023, totaled $330.3 million, with a net income including noncontrolling interest of $43.1 million. The Adjusted EBITDA stood at $215.3 million for the quarter, with a Distributable Cash Flow of $148.1 million and a Free Cash Flow of $36.8 million. These figures reflect the company's ability to maintain profitability and cash generation despite the operational challenges faced during the quarter.
Analysis of Company Performance
Kinetik's performance in Q3 2023 demonstrates a strong operational capacity and financial discipline. The company's strategic investments and expansions are expected to drive further growth and enhance its competitive position in the market. With the updated Adjusted EBITDA guidance and the anticipated completion of key pipeline projects, Kinetik is well-positioned to capitalize on the opportunities within the energy sector.
Kinetik Holdings Inc (KNTK, Financial) continues to focus on its strategic vision, with an emphasis on sustainable growth and value creation for its shareholders. The company's financial results and operational achievements in Q3 2023 underscore its commitment to delivering on its promises and navigating the complexities of the energy market.
For more detailed information, investors and interested parties are encouraged to visit the Investors section of Kinetik's website at www.ir.kinetik.com.
Explore the complete 8-K earnings release (here) from Kinetik Holdings Inc for further details.
