Kinetik : March 2025 Investor Presentation
KNTK
Investor Presentation
March 2025
Who is Kinetik?
A business poised to capitalize on a world class, low-cost supply basin and strong natural gas/NGL fundamentals
NYSE-listed corporate entity with a market capitalization of $9 billion
Pure-play midstream company in the Permian Basin, the cornerstone of the US Oil & Gas industry
Integrated natural gas super-system spanning the Delaware Basin providing customers with unique access to multiple downstream markets at premium pricing
Strong track record of industry leading volume growth that has consistently outpaced underlying Permian Basin growth and is expected to continue
Levered to strong natural gas fundamentals driven by rising global LNG demand and expected growth in AI data centers
Attractive financial profile and balanced capital allocation framework provide flexibility for opportunistic capital deployment
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Why Kinetik?
The industry's only public Permian pure-play midstream business
Scaled
midstream
platform
2.4 Bcfpd processing
8 counties
~3.7 Bcfpd of gas &
~1.8 Mmbpd of liquid
capacity(1)
Operations across Texas and New
pipelines
Third largest in the Delaware Basin
Mexico
Throughput capacities
Historical
52%
10%
28%
financial
Increase in processed gas volumes
3-year Adjusted EBITDA CAGR(2)(3)
3-year Free Cash Flow CAGR(2)(3)
performance
since 2021
Financial
3.4x Leverage Ratio
(2)
5.3%
100%
discipline and
Debt capital structure linked to
transparency
Below 3.5x leverage target
Current dividend yield(4)
sustainability performance targets
(1)
Following completion of 220 Mmcfpd Kings Landing Complex estimated in 2Q25.
(2)
A non-GAAP measure. See "Non-GAAP Financial Measures Reconciliation" for a reconciliation to the nearest comparable GAAP measure.
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(3)
2024 Actuals compared to 2021 Pro Forma Adjusted EBITDA and Free Cash Flow.
(4)
KNTK Class A closing share price of $58.34 as of February 28th, 2025.
Premier Delaware Basin platform with compelling scale
Extensive gathering system across Texas and New Mexico
Opportunistically primed for continued Permian market share gains
Significant Delaware position and integrated pipeline footprint to benefit from supply-push and demand-pull fundamentals
Operational Highlights
Processing Capacity
Over 2.4 Bcfpd(1)
Processing Complexes
8(1)
Operated Pipelines
>4,800 miles
Serviced Acres
~1.4mm acres
Customers
~90 customers
Midland
Waha
Kinetik Plant
Kinetik Pipelines
ECCC Pipeline
EPIC Crude
Permian Highway
Shin Oak
Serviced Acreage
Energy Markets
LNG Projects
Katy
Mont
Port Arthur
Belvieu
LNG
Texas City
Sabine Pass
Houston
Sweeny
Central
Freeport LNG
Freeport
Agua Dulce
Cheniere CCL
Corpus Christi
Global LNG and ethane / LPG exports
Next Decade
Rio Grande LNG
Exports to Mexico
(1) Following completion of 220 Mmcfpd Kings Landing Complex estimated in 2Q25.
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Broad system reach across the Delaware Basin
Unique downstream connectivity positioned to support continued basin-wide growth
Dagger
Maljamar
Draw
Kings
Landing(1)
Sierra
Grande
Pecos
Bend
East Pecos
Toyah
Delaware Link
Kinetik NGL
Diamond
Cryo
Processing Facilities
PHP
Kinetik System
Shin Oak
Under Construction
EPIC Crude
ECCC Pipeline
Energy Markets
Delaware Link
LNG Projects
Kinetik NGL
Serviced Acreage
Midland
Waha
Mont
Katy
Belvieu Port Arthur
LNG
Texas City Sabine Pass
HoustonSweeny
Central
Freeport LNG
Freeport
Agua Dulce
Cheniere CCL
Corpus Christi
Next Decade Rio
Grande LNG
Exports to
Mexico
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A full-service, integrated midstream model
Fee-based business with mission critical infrastructure
Gas gathering
Diversified customer base
of ~90 producers
Gas processing and
treating
Third largest processor in
the Delaware Basin(1)
Crude and produced
water solutions
Represents ~6% of 2025E
Adjusted EBITDA(2)
Intrabasin pipelines
100% owned and operated
intrabasin pipeline
connectivity
Long-haul pipelines
Strategic ownership in
Permian to US Gulf Coast
pipelines
Kinetik's interconnected super-system and unique access to multiple downstream markets offer Delaware
Basin customers reliability and enhanced economic value
(2)
A non-GAAP measure. See "Non-GAAP Financial Measures Reconciliation" for a reconciliation to the nearest comparable GAAP measure.
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(3)
Under construction with estimated completion of 1Q26.
Strong natural gas fundamentals enhance Kinetik's value proposition
Increasing global demand for natural gas drives regional supply-demand dynamics
Global electrification movement resulting in rising energy demand
• AI to drive data center demand growth with incremental 55-60GW of capacity expected by 2030(2)
Natural gas is meeting this incremental global demand
Energy transition cannot occur without natural gas
LNG facilities driving US Gulf Coast demand pull
Delaware Basin is one of the most prolific resources in the US for cost advantaged natural gas
(3)
Source: International Energy Agency. February 2025.
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(4)
Replacement of coal with natural gas for electricity generation. Source: International Energy Agency, 2019.
(5)
Source: Wood Mackenzie North America Gas Markets Long-Term Outlook, November 2024.
Asset footprint strategically located to meet growing demand(1)
Well-positioned to support continued Permian basin growth and meet demand needs in US Gulf Coast
6% 2024-2030 Permian Supply CAGR
5% 2024-2030 US Gulf Coast Demand CAGR
Permian Dry Gas Production
Permian NGL Production
USGC Natural Gas Demand
USGC Ethane and LPG Demand
28.6 Bcfpd
+8 Bcfpd
3.9 Mmbpd
+1 Mmbpd
+18 Bcfpd
59.5 Bcfpd
6.6 Mmbpd
+1 Mmbpd
20.5 Bcfpd
2024
2030
2.8 Mmbpd
2024
2030
41.6 Bcfpd
2024
2030
5.7 Mmbpd
2024
2030
(1)
Source: Wood Mackenzie North America Gas 10-Year Investment Horizon Outlook, November 2024, Wood Mackenzie US NGLs 10-Year Investment Horizon Outlook, November 2024 and internal estimates.
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(2)
Includes Whitewater's Blackcomb pipeline (2.5 Bcfpd), ET's Hugh Brinson pipeline (1.5 Bcfpd), and Kinder Morgan's GCX expansion (0.6 Bcfpd).
Track record of volume growth
Kinetik processed gas volume growth continues to outpace the underlying Permian Basin
Indexed Gas Volume Growth Since 2021(1)
Durango Permian and Barilla Draw
acquisitions, completion of Kings Landing, and existing commercial successes drive meaningful acceleration in volume growth
52%
Kinetik
40%
Permian Gas Growth
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Dec-23
Mar-24
Jun-24
Sep-24
Dec-24
Mar-25
Jun-25
Sep-25
Dec-25
(1) Source: EIA Natural Gas Permian Marketed Production as of February 11th, 2025 and internal estimates. Kinetik processed gas volume growth and Permian gas production growth indexed beginning 4Q21. 2025 estimates reflect internal forecasts.
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Disclaimer
Kinetik Holdings Inc. published this content on March 05, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 05, 2025 at 12:15:07.480.