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Dec 31, 2024
Kinetik Q4 2024 Earnings Report
Kinetik reported strong Q4 2024 results despite operational challenges.
Key Takeaways
Kinetik Holdings Inc. posted Q4 2024 revenue of $385.7 million, reflecting an increase from the prior year. The company generated net income of $16.2 million and an adjusted EPS of $0.01. Adjusted EBITDA for the quarter stood at $237.5 million, with free cash flow of $32.5 million. The company faced temporary setbacks due to gas price volatility but remains on track for long-term growth, supported by strategic acquisitions and infrastructure expansion.
Total revenue increased to $385.7 million in Q4 2024.
Net income stood at $16.2 million, with adjusted EPS of $0.01.
Adjusted EBITDA reached $237.5 million, reflecting stable operations.
Free cash flow totaled $32.5 million, ensuring strong liquidity.
Forward Guidance
Kinetik expects strong revenue growth in 2025, with Adjusted EBITDA guidance of $1.09 billion to $1.15 billion. The company remains focused on infrastructure expansion and strategic acquisitions to drive long-term profitability.
Positive Outlook
- Projected Adjusted EBITDA growth of 15% year-over-year.
- Expansion of the Kings Landing Complex to boost processing capacity.
- Increased investment in gas gathering and transportation assets.
- Strong free cash flow supports continued dividend growth.
- Continued reduction in leverage to enhance financial flexibility.
Challenges Ahead
- Potential gas price volatility impacting short-term profitability.
- Higher capital expenditures projected at $450 million - $540 million.
- Operational risks related to pipeline expansions and integrations.
- Uncertainty around regulatory changes affecting midstream operations.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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