Kinetik Holdings Inc. · NYSE:KNTK
Kinetik — Merger or Acquisition (May 2024)
11 slides from Kinetik's merger presentation, May 9, 2024
Slide 1: The Next Chapter
May 9, 2024 KAINIE THIK The Next Chapter )»)»» The Permian is Kinetik
Slide 2: Forward looking statements
Forward looking statements This presentation includes certain statements that may constitute “forward-looking statements” for purposes of the federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts or other characterization
Slide 3: Complementary transactions position Kinetik for strategic growth
Complementary transactions position Kinetik for strategic growth ~$1bn reinvested in highly strategic, financially accretive transactions funded by sale of GCX and KNTK equity Non-core, non-operated investment Strategic, fully owned and operated ~$990mm of sources; ~10.5x sale multiple ~$1bn of uses
Slide 4: Checks all the boxes
Checks all the boxes Immediately deleveraging while meaningfully increasing operational scale and strategic value 1 Accelerates achievement of leverage target(1) Transactions reduce leverage(1) to ~3.5x and 8 accelerate our quest to 2 Reinforces integrated Investment Grade ratings Meaningfully incre
Slide 5: Broadens system reach across the Delaware Basin
Broadens system reach across the Delaware Basin Extensive in-basin system and strategic downstream connectivity positioned to support basin-wide growth Processing Facilities Durango System New Eddy County Project Kinetik System Energy Markets LNG Projects Serviced Acreage Area Midland Waha Mont Port
Slide 6: Strategic expansion into the Northern Delaware Basin
Strategic expansion into the Northern Delaware Basin Expanding our footprint through series of highly value and credit accretive transactions Highly strategic • Durango acquisition and new commercial agreement expand Kinetik’s operations in Eddy and Lea Counties, the most active in the country • Cor
Slide 7: Premier Delaware basin platform with compelling scale
Premier Delaware basin platform with compelling scale Increases Kinetik’s processing capacity by ~20% to over 2.4 Bcfpd and doubles pipeline mileage(1) Attractive beachhead position in Northern Delaware NW Shelf • Stacked-pay formations with two distinct, liquids-rich plays, low declines, and additi
Slide 8: Our capital allocation framework
Our capital allocation framework Maximizes shareholder value while providing flexibility for opportunistic capital deployment 3.5x leverage target(1) • Leverage target(1) achieved with the strategic transactions • Accelerates Investment Grade ratings $1bn Adjusted EBITDA target(1) • Project executio
Slide 9: For more information:
For more information: Leadership Board of Directors Sustainability
Slide 10: IK
IK
Slide 11: Glossary of terms
Glossary of terms • Adjusted EBITDA (EBITDA) is defined as net income including non-controlling interests adjusted for interest, taxes, depreciation and amortization, impairment charges, asset write-offs, the proportionate EBITDA from unconsolidated affiliates, equity in earnings from unconsolidated