KNTK Earnings Prediction
The chart below shows how KNTK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KNTK sees a -0.75% change in stock price 10 days leading up to the earnings, and a +5.12% change 10 days following the report. On the earnings day itself, the stock moves by -0.69%. This data can give you a slight idea of what to expect for the next quarter's release.
KNTK Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
396.36M
20.00%
10.27%
Gross Margin
39.94%
23.27%
9.04%
Operating Margin
18.39%
47.00%
16.98%
Net Margin
21.11%
61.64%
-30.35%
EPS
0.35
66.67%
-35.19%
No Data Available
KNTK Earnings Analysis
Kinetik Holdings Inc. Corporation (KNTK.N) Earnings Conference Call
Positive
Record Adjusted EBITDA Growth: 1. Record Adjusted EBITDA: Kinetik reported an adjusted EBITDA of $266 million for Q3 2024, marking a 23% increase year-over-year, the highest quarterly performance since going public.
Gas Volume Expansion: 2. Significant Gas Volume Growth: The company processed gas volumes of 1.71 billion cubic feet per day, reflecting a 15% year-over-year growth despite market challenges.
Free Cash Flow Surge: 3. Strong Free Cash Flow: Kinetik generated free cash flow of $165 million in Q3 2024, which is more than three times the amount from the previous year.
Dividend Increase Announcement: 4. Increased Dividend: The Board of Directors raised the quarterly cash dividend to $3.12 on an annualized basis, demonstrating confidence in the company's financial health and commitment to returning value to shareholders.
EBITDA Guidance Revision: 5. Upward Revision of EBITDA Guidance: Kinetik revised its 2024 adjusted EBITDA guidance upwards to a range of $970 million to $1 billion, indicating a projected year-over-year growth approaching 20%.
Negative
Negative Gas Pricing Impact: 1. Negative Gas Prices: The average gas price at the Waha Hub was negative $1 per Mcf for the quarter, impacting overall revenue potential.
Wellhead Gas Volume Curtailment: 2. Curtailment of Wellhead Gas Volumes: Approximately 170 million cubic feet per day of wellhead gas volume was curtailed on the system due to pricing issues, indicating a significant loss of potential throughput.
Texas Gas Volume Stagnation: 3. Flat Volume Growth in Texas: Despite overall growth, gas volumes in Texas remained flat sequentially, with wellhead volume curtailments increasing by about 30 million cubic feet per day during the same period.
Increased Capital Expenditures: 4. High Capital Expenditures: The company has revised its capital expenditures guidance to a range of $270 million to $290 million for the full year, indicating a significant financial commitment that may strain cash flow.
Negative Pricing Challenges: 5. Ongoing Negative Pricing Environment: The company anticipates continued challenges with negative pricing at Waha, which could hinder profitability and operational efficiency in the near term.
KNTK FAQs
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KNTK Earning Call Sentiment
Kinetik Holdings Inc. (KNTK) Q3 2024 Earnings Call Transcript
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KNTK.N
-1.95%Positive
Basic financial performance is strong with record high revenue and increased EBITDA. Product development shows progress with Kings Landing projects. Market strategy is solid with hedging and expansion plans. Expenses are well-managed, and financial health is stable. Shareholder return plans are positive with dividend hikes and share repurchases. Q&A reveals optimism despite some risks. Overall, the positive financial results and guidance outweigh potential risks, suggesting a likely stock price increase of 2% to 8%.
