DEF: Kinetik Holdings Inc. Announces Notice of Annual Meeting of Stockholders and Proxy Statement

Kinetik Holdings Inc. sets May 19, 2025, as the date for its annual meeting of stockholders, outlining key proposals including the election of directors, executive compensation approval, and auditor ratification.

Summary

• Kinetik Holdings Inc. will hold its annual meeting of stockholders on May 19, 2025.
• The meeting will be conducted virtually.
• Stockholders will vote on the election of 10 directors, an advisory vote on executive compensation, and the ratification of KPMG LLP as the independent auditor for fiscal year 2025.
• The board recommends voting for all director nominees, for the approval of executive compensation, and for the ratification of KPMG.
• The proxy statement and the company's annual report are available on the company's website.
• In 2024, Kinetik achieved record natural gas processed volume growth of 13% year-over-year and record Adjusted EBITDA growth of 16% year-over-year.
• The company closed $1 billion of strategic transactions, including the acquisition of Durango Permian, LLC.
• Kinetik increased its equity interest in EPIC Crude Holdings, LP to 27.5%.
• The company reduced its leverage below the target of 3.5x and increased its cash dividend by 4%.

Sentiment

Score: 8

Explanation: The document presents a positive outlook for Kinetik Holdings, highlighting strong financial performance, strategic transactions, and a commitment to sustainability. The tone is optimistic and confident, reflecting the company's achievements and future prospects.

Positives

• Kinetik achieved record natural gas processed volume growth of 13% year-over-year in 2024.
• The company reported record Adjusted EBITDA growth of 16% year-over-year in 2024.
• Kinetik closed $1 billion in strategic transactions, expanding its footprint in New Mexico.
• The company increased its equity interest in EPIC Crude Holdings, LP to 27.5%, strengthening its financial profile.
• Kinetik reduced its leverage below the company's target of 3.5x.
• The company increased its cash dividend by 4%, accelerating the return of capital to shareholders.
• Kinetik received a positive credit ratings outlook from S&P.
• The company's Total Shareholder Return (TSR) on an absolute and relative basis, including the absolute return of 74.8%, was well above the median performance of the Companys 2024 peer group.

Risks

• The document does not explicitly detail risks, but it is important to consider general risks associated with the midstream energy sector, such as commodity price volatility, regulatory changes, and operational disruptions.

Future Outlook

The company is excited about its future and looks forward to the year ahead, focusing on being the premier provider of safe, reliable, and environmentally responsible midstream services in the Delaware Basin.

Management Comments

• 2024 was another transformational year for Kinetik.
• We achieved record volume and Adjusted EBITDA growth and closed the largest transaction since the Company merger in February of 2022.
• We have a demonstrated track record of strong operational execution, and our commitment to safe and reliable operations for our customers and communities in which we operate is propelling sustainable growth and reinforcing Kinetiks position as a best-in-class leader in the Delaware Basin.

Industry Context

The announcement reflects Kinetik's strategic positioning within the Delaware Basin, a key area for oil and gas production. The company's focus on expanding its asset footprint and capabilities aligns with industry trends of consolidation and increased efficiency in midstream operations.

Comparison to Industry Standards

• The document mentions a peer group of companies including Western Midstream Partners, DCP Midstream, and Antero Midstream Corporation.
• Kinetik's Adjusted EBITDA growth of 16% year-over-year and natural gas processed volume growth of 13% year-over-year can be compared to the performance of these peers to assess its relative success.
• The company's leverage ratio of below 3.5x can be benchmarked against industry standards and the leverage ratios of its peers to evaluate its financial health.

Stakeholder Impact

• Shareholders will have the opportunity to vote on key proposals that impact the company's direction and governance.
• Employees are part of a company that is experiencing growth and success, with a focus on safety and sustainability.
• Customers benefit from Kinetik's commitment to providing safe and reliable midstream services.
• The company's investments in the communities in which it operates contribute to local economic development.

Next Steps

• Stockholders are encouraged to vote on the proposals outlined in the proxy statement.
• The company will hold its annual meeting on May 19, 2025.
• Kinetik will continue to focus on expanding its operations and delivering value to its stakeholders.

Key Dates

Keywords

Kinetik Holdings, annual meeting, proxy statement, directors, executive compensation, KPMG, Adjusted EBITDA, Durango Permian, EPIC Crude Holdings, Delaware Basin, stockholders