Q2 2024 Kinetik Holdings Inc Earnings Call Transcript
Key Points
- Kinetik Holdings Inc (KNTK) reported a 13% year-over-year increase in adjusted EBITDA, reaching over $234 million for the second quarter.
- The company successfully completed the GCX divestiture and Durango acquisition, enhancing its strategic position in the Delaware Basin.
- Kinetik Holdings Inc (KNTK) expanded its operations into the Northern Delaware Basin, with nearly 20% of its volumes now sourced from New Mexico.
- The company has sanctioned pre-FID work for Kings Landing II, which will double the processing capacity at the Kings Landing Processing Complex.
- Kinetik Holdings Inc (KNTK) revised its 2024 guidance upwards, reflecting strong business performance and successful transactions.
- The company faced wellhead volume curtailments due to Waha Hub pricing, impacting gas volumes by approximately 140 million cubic feet per day.
- Only two months of contribution from GCX were included in the second quarter results, affecting the pipeline transportation segment.
- The company is experiencing challenges with egress solutions in the Permian Basin, with Waha pricing remaining weak.
- Kinetik Holdings Inc (KNTK) anticipates significant capital expenditures, with guidance increasing to between $260 million to $300 million for the full year.
- The integration of Durango requires substantial investment in preventative maintenance, facility upgrades, and capacity expansions.
Good morning. Thank you for attending today's Kinetik second quarter 2024 results call. My name is Jennifer and I'll be your moderator today. (Operator Instructions).
I would now like to pass the conference over to Maddie Wagner, Director of Investor Relations. Maddie, please proceed.
Thank you. Good morning and welcome to Kinetik's second quarter 2024 earnings conference call. Our speakers today are Jamie Welch, our President and Chief Executive Officer, and Trevor Howard, our Chief Financial Officer. Other members of our senior management team are also in attendance for this morning's call. The press release we issued yesterday, the slide presentation and access to the webcast for today's call are available at www.kinetik.com.
Before we begin, I would like to remind all listeners that our remarks, including the question-and-answer section will provide forward-looking statements and actual results could
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