Kinetik Holdings Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Kinetik Holdings Inc. Reports Second Quarter 2024 Financial Results
Overview
Kinetik Holdings Inc. (NYSE: KNTK) today reported its financial results for the quarter ending June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | YoY Change | QoQ Change | Consensus Estimate |
|---|---|---|---|---|---|---|
| Net Income | $108.9M | Not Provided | Not Provided | +52% | Not Provided | Not Provided |
| Adjusted EBITDA | $234.4M | Not Provided | Not Provided | +13% | Not Provided | Not Provided |
Interpretation: Kinetik witnessed significant year-over-year (YoY) growth with a 52% increase in net income to $108.9 million and a 13% rise in Adjusted EBITDA to $234.4 million. Comparisons against consensus estimates for revenue and EPS were not fully available, but the robust performance signifies strong operational execution and strategic investments.
Operational Data
| Operational Metric | Q2 2024 |
|---|---|
| Natural Gas Volumes Processed | 1.58 Bcf/d |
| Dividends Announced | $0.75 per share |
Interpretation: Kinetik processed 1.58 Bcf/d of natural gas in Q2 2024, reflecting a 7% increase YoY.
Executive Commentary
Jamie Welch, Kinetik's President & CEO, noted significant progress including the completion of the Durango acquisition and the successful divestiture of a 16% non-operated equity interest in the Gulf Coast Express pipeline. He highlighted the expansion footprint into Northern Eddy and Lea Counties, New Mexico, and ongoing construction and integration activities.
Dividend Announcement
Kinetik announced a dividend of $0.75 per share for Q2 2024, resulting in an annualized payout of $3.00 per share.
Forward Guidance
Kinetik revised its FY 2024 Adjusted EBITDA guidance upwards to between $940 million and $980 million, a 3% increase at the midpoint versus previous guidance. Capital Expenditures are now estimated between $260 million and $300 million.
Stock Price Movement
Post-earnings release, Kinetik's stock experienced a -0.59% change.
Conclusion
Kinetik Holdings Inc. achieved a robust financial performance in Q2 2024, with significant YoY growth in net income and Adjusted EBITDA. Strategic acquisitions and expansions, alongside positive forward guidance, position the company well for future growth.
