Kinetik Reports Fourth Quarter and Full Year 2023 Financial and Operating Results and Provides 2024 Guidance
-
Generated fourth quarter 2023 net income of
$267.4 million and Adjusted EBITDA1 of$228.0 million
-
Reported full year 2023 net income of
$386.5 million , Adjusted EBITDA1 of$838.8 million , and Capital Expenditures2 and investments of$531.2 million
-
Issuing full year 2024 Adjusted EBITDA1 guidance of
$905 million to$960 million and$125 million to$165 million of 2024 Capital Expenditures2 guidance (“2024 Guidance”)
-
Completing the core shareholder dividend reinvestment obligation with the upcoming dividend to be paid on
March 7 th, 2024; and going forward, all shareholders will now be eligible to receive 100% cash dividends
- Placed Delaware Link and the Permian Highway Pipeline (“PHP”) expansion in-service in the fourth quarter
-
Completed construction and placed in-service the gathering expansion into
Lea County, New Mexico inJanuary 2024 , marking the third and final in-service of the 2023 strategic growth projects
HOUSTON &
2023 Results and Commentary
For the three and twelve months ended
“2023 was a critical year for
“We reported full year 2023 Adjusted EBITDA1 of
2024 Guidance and Outlook
Guidance assumptions include:
- Low-double digit growth of gas processed volumes;
- Over 90% of gross profit from fixed-fee contracts;
-
2024 average annual commodity prices of approximately
$76 per barrel for WTI,$2 per MMBtu for Houston Ship Channel natural gas, and$0.60 per gallon for natural gas liquids; and - Unhedged commodity-linked gross profit representing approximately 5% of total gross profit
The Company estimates 2024 Capital Expenditures2 to be between
Welch added, “2024 will be an important year along the journey to achieve our financial targets. We have strengthened the composition of our cash flows with increased contributions from our Pipeline Transportation segment and MVC fee-based revenue. The Pipeline Transportation segment is expected to contribute 40% of total 2024 Adjusted EBITDA1, a nearly 15% increase in two years. Our 2024 Capital Expenditures2 guidance is below our previously communicated expectations as we focus on a reduced capital program given the completion of last year’s growth projects. We expect a significant increase in Free Cash Flow1 this year, despite the dividend being paid in cash to all shareholders.”
Financial
-
Achieved quarterly net income of
$267.4 million and Adjusted EBITDA1 of$228.0 million . -
Achieved 2023 annual net income of
$386.5 million and Adjusted EBITDA1 of$838.8 million . -
Reported full year 2023 Capital Expenditures2 of
$531.2 million , within the Company’s guidance range provided in February, and for the fourth quarter 2023 reported Capital Expenditures2 of$95.0 million . -
Declared a dividend of
$0.75 per share for the quarter endedDecember 31, 2023 , or$3.00 per share on an annualized basis. 98.9 million shares have elected to reinvest fourth quarter dividends into newly issued shares of Class A common stock. As a result,$39.2 million of fourth quarter dividends will be paid in cash.3 -
Following the payment on
March 7, 2024 , all shareholders will be eligible to receive 100% cash dividend payments. - Exited the fourth quarter with a Leverage Ratio1,4 per the Company’s Revolving Credit Agreement of 4.0x and a Net Debt to Adjusted EBITDA Ratio1,5 of 4.3x.
-
Realized over
$50 million of Adjusted EBITDA1 synergies in 2023, exceeding the original merger target. -
Issued
$800 million of 6.625% sustainability-linked senior notes. The net proceeds repaid a portion of the outstanding borrowings under Kinetik’s existing Term Loan Credit Facility and extended the maturity of that facility toJune 2026 . -
Closed upsized secondary offering of 7.5 million shares by
APA Corporation , increasing public float by 47%.
Selected Key 2023 Metrics:
|
|
Three Months Ended |
|
Twelve Months Ended |
||
|
|
2023 |
|
2023 |
||
|
|
|
|
|
||
|
|
(In thousands, except ratios) |
||||
Net income including non-controlling interest6 |
|
$ |
267,354 |
|
$ |
386,452 |
Adjusted EBITDA1 |
|
$ |
228,005 |
|
$ |
838,830 |
Distributed Cash Flow1 |
|
$ |
149,713 |
|
$ |
568,507 |
Dividend Coverage Ratio1,7 |
|
1.3x |
|
1.3x |
||
Free Cash Flow1 |
|
$ |
76,917 |
|
$ |
59,931 |
Leverage Ratio1,4 |
|
|
|
4.0x |
||
Net Debt to Adjusted EBITDA Ratio1,5 |
|
|
|
4.3x |
||
Common stock issued and outstanding8 |
|
|
|
|
151,185,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
||||||
Net Debt1,9 |
|
|
|
|
|
|
|
|
Growth Projects
-
Completed and placed in service Kinetik’s gathering system expansion into
Lea County, New Mexico onJanuary 18, 2024 , ahead of schedule by over two months and under budget. -
Placed in service the PHP expansion on
December 1, 2023 , expanding PHP’s capacity by 550 MMcf/d and increasing natural gas deliveries from the Permian to theU.S. Gulf Coast . Kinetik’s PHP ownership is now over 55%. -
Placed in service on
October 1, 2023 , Delaware Link, Kinetik’s wholly owned and operated 30 inch intrabasin residue gas pipeline to Waha with an initial throughput capacity of 1 Bcf/d. -
Installation of front-end amine treating at Pecos Bend should be placed in-service by
April 2024 , completing Kinetik’s system wide treating project.
Governance and Sustainability
-
Michael Kumar was appointed to the Board of Directors, replacingRon Schweizer .Mr. Kumar currently serves as a Senior Policy Advisor forI Squared Capital . - The Company’s 2023 compensation program tied 20% of all salaried employees’ at-risk pay, including executives, to specific sustainability and safety related goals. The Company plans for a similar approach in 2024.
-
Kinetik expects to publish its 2023 Sustainability Report mid-year, providing further details on its sustainability strategy, targets, and results. - Granted 2023 performance bonuses in Kinetik Class A Common Stock rather than cash which reinforces alignment with our shareholders.
Upcoming Tour Dates
-
Morgan Stanley Energy & Power Conference inNew York City onMarch 7 th -
Barclays Midstream Corporate Access Day Luncheon in
New York City onMarch 7 th -
Goldman Sachs Non-Deal Roadshow in
Boston onMarch 12 th -
Wolfe Houston Bus Tour onMarch 19 th -
Bank of America Spring Energy Summit inHouston onMarch 26 th
Investor Presentation
An updated investor presentation will be available under Events and Presentations in the Investors section of the Company’s website at www.kinetik.com.
Conference Call and Webcast
About
Forward-looking statements
This news release 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 characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “seeks,” “possible,” “potential,” “predict,” “project,” “prospects,” “guidance,” “outlook,” “should,” “would,” “will,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about the Company’s future business strategy and other plans, expectations, and objectives for the Company’s operations, including statements about strategy, synergies, sustainability goals and initiatives, portfolio monetization opportunities, expansion projects and future operations, and financial guidance; the Company’s share repurchase program and the projected timing, purchase price and number of shares purchased under such program, if at all; projected dividend amounts and the timing thereof and the Company’s leverage and financial profile. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended
Additional information
Additional information follows, including a reconciliation of Adjusted EBITDA, Distributable Cash Flow, Free Cash Flow, and Net Debt (non-GAAP financial measures) to the GAAP measures.
Non-GAAP financial measures
Kinetik’s financial information includes information prepared in conformity with generally accepted accounting principles (GAAP) as well as non-GAAP financial information. It is management’s intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP. Adjusted EBITDA, Distributable Cash Flow, Free Cash Flow, Dividend Coverage Ratio, Net Debt and Leverage Ratio are non-GAAP measures. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated. See “Reconciliation of GAAP to Non-GAAP Measures” elsewhere in this news release. This news release also includes certain forward-looking non-GAAP financial information. Reconciliations of these forward-looking non-GAAP measures to their most directly comparable GAAP measure are not available without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various reconciling items that would impact the most directly comparable forward-looking GAAP financial measure, that have not yet occurred, are out of Kinetik’s control and/or cannot be reasonably predicted. Accordingly, such reconciliation is excluded from this new release. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
- A non-GAAP financial measure. See “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Measures” for further details.
- Net of contributions in aid of construction and returns of invested capital from unconsolidated affiliates.
-
Leverage Ratio is total debt less cash and cash equivalents divided by last twelve months Adjusted EBITDA, calculated in the Company’s credit agreement. The calculation includes
Qualified Project and Acquisition EBITDA Adjustments that pertain to the funding of the Permian Highway Pipeline expansion project, Delaware Link project, first quarter 2023 midstream infrastructure asset acquisition, and other qualified projects at the Midstream Logistics segment. - Net Debt to Adjusted EBITDA Ratio is defined as Net Debt divided by last twelve months Adjusted EBITDA.
-
Dividends reinvested and dividends paid in cash as of
February 27th, 2024 . Final numbers are subject to change. -
Net income including noncontrolling interest for the three and twelve months ended
December 31, 2022 was$48.5 million and$250.7 million , respectively. - Dividend Coverage Ratio is Distributable Cash Flow divided by total declared dividends.
- Issued and outstanding shares of 151,185,576 is the sum of 57,096,538 shares of Class A common stock and 94,089,038 shares of Class C common stock.
- Net Debt is defined as total long-term debt, excluding deferred financing costs, premiums and discounts, less cash and cash equivalents.
Notes Regarding Presentation of Financial Information
The following addresses the results of our operations for the three and twelve months ended
Unless otherwise noted or the context requires otherwise, references herein to
The Company completed a two-for-one Stock Split on
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
2022(1) |
||
|
|
|
|
|
|
|
|
|
||||||||
|
|
(In thousands, except per share data) |
||||||||||||||
Operating revenues: |
|
|
|
|
|
|
|
|
||||||||
Service revenue |
|
$ |
107,426 |
|
|
$ |
103,832 |
|
|
$ |
417,751 |
|
|
$ |
393,954 |
|
Product revenue |
|
|
235,876 |
|
|
|
187,971 |
|
|
|
822,410 |
|
|
|
806,353 |
|
Other revenue |
|
|
5,566 |
|
|
|
3,690 |
|
|
|
16,251 |
|
|
|
13,183 |
|
Total operating revenues |
|
|
348,868 |
|
|
|
295,493 |
|
|
|
1,256,412 |
|
|
|
1,213,490 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
||||||||
Costs of sales (exclusive of depreciation and amortization shown separately below)(2) |
|
|
141,621 |
|
|
|
123,321 |
|
|
|
515,721 |
|
|
|
541,518 |
|
Operating expenses |
|
|
42,716 |
|
|
|
36,293 |
|
|
|
161,520 |
|
|
|
137,289 |
|
Ad valorem taxes |
|
|
6,668 |
|
|
|
1,034 |
|
|
|
21,622 |
|
|
|
16,970 |
|
General and administrative expenses |
|
|
24,775 |
|
|
|
22,088 |
|
|
|
97,906 |
|
|
|
94,268 |
|
Depreciation and amortization |
|
|
72,715 |
|
|
|
67,736 |
|
|
|
280,986 |
|
|
|
260,345 |
|
Loss on disposal of assets |
|
|
4,236 |
|
|
|
9 |
|
|
|
19,402 |
|
|
|
12,611 |
|
Total operating costs and expenses |
|
|
292,731 |
|
|
|
250,481 |
|
|
|
1,097,157 |
|
|
|
1,063,001 |
|
Operating income |
|
|
56,137 |
|
|
|
45,012 |
|
|
|
159,255 |
|
|
|
150,489 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
||||||||
Interest and other income |
|
|
379 |
|
|
|
239 |
|
|
|
2,004 |
|
|
|
489 |
|
Gain on redemption of mandatorily redeemable Preferred Units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,580 |
|
Loss on debt extinguishment |
|
|
(1,876 |
) |
|
|
— |
|
|
|
(1,876 |
) |
|
|
(27,975 |
) |
Gain on embedded derivative |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
89,050 |
|
Interest expense |
|
|
(75,411 |
) |
|
|
(56,667 |
) |
|
|
(205,854 |
) |
|
|
(149,252 |
) |
Equity in earnings of unconsolidated affiliates |
|
|
53,187 |
|
|
|
60,250 |
|
|
|
200,015 |
|
|
|
180,956 |
|
Total other (expense) income, net |
|
|
(23,721 |
) |
|
|
3,822 |
|
|
|
(5,711 |
) |
|
|
102,848 |
|
Income before income taxes |
|
|
32,416 |
|
|
|
48,834 |
|
|
|
153,544 |
|
|
|
253,337 |
|
Income tax (benefit) expense |
|
|
(234,938 |
) |
|
|
372 |
|
|
|
(232,908 |
) |
|
|
2,616 |
|
Net income including non-controlling interest |
|
|
267,354 |
|
|
|
48,462 |
|
|
|
386,452 |
|
|
|
250,721 |
|
Net income attributable to Preferred Unit limited partners |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
115,203 |
|
Net Income attributable to common shareholders |
|
|
267,354 |
|
|
|
48,462 |
|
|
|
386,452 |
|
|
|
135,518 |
|
Net income attributable to Common Unit limited partners |
|
|
168,046 |
|
|
|
32,966 |
|
|
|
245,114 |
|
|
|
94,783 |
|
Net income attributable to Class A Common Shareholders |
|
$ |
99,308 |
|
|
$ |
15,496 |
|
|
$ |
141,338 |
|
|
$ |
40,735 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Class A Common Shareholders, per share |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
1.70 |
|
|
$ |
0.26 |
|
|
$ |
2.39 |
|
|
$ |
1.48 |
|
Diluted |
|
$ |
1.70 |
|
|
$ |
0.25 |
|
|
$ |
2.38 |
|
|
$ |
1.48 |
|
Weighted average shares(3) |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
55,738 |
|
|
|
44,403 |
|
|
|
51,791 |
|
|
|
41,326 |
|
Diluted |
|
|
55,883 |
|
|
|
44,448 |
|
|
|
52,060 |
|
|
|
41,361 |
|
(1) The results of the legacy Altus business are not included in the Company’s consolidated financials prior to |
|
|||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES |
|||||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
2022(1) |
||
|
|
|
|
|
|
|
|
||||||||
Net Income Including Non-controlling Interests to Adjusted EBITDA |
(In thousands) |
||||||||||||||
Net income including non-controlling interests (GAAP) |
$ |
267,354 |
|
|
$ |
48,462 |
|
|
$ |
386,452 |
|
|
$ |
250,721 |
|
Add back: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
75,411 |
|
|
|
56,667 |
|
|
|
205,854 |
|
|
|
149,252 |
|
Income tax (benefit) expense |
|
(234,938 |
) |
|
|
372 |
|
|
|
(232,908 |
) |
|
|
2,616 |
|
Depreciation and amortization |
|
72,715 |
|
|
|
67,736 |
|
|
|
280,986 |
|
|
|
260,345 |
|
Amortization of contract costs |
|
1,655 |
|
|
|
463 |
|
|
|
6,620 |
|
|
|
1,807 |
|
Proportionate EBITDA from unconsolidated affiliates |
|
81,139 |
|
|
|
78,388 |
|
|
|
306,072 |
|
|
|
268,826 |
|
Share-based compensation |
|
12,642 |
|
|
|
11,814 |
|
|
|
55,983 |
|
|
|
42,780 |
|
Loss on disposal of assets |
|
4,236 |
|
|
|
9 |
|
|
|
19,402 |
|
|
|
12,611 |
|
Loss on debt extinguishment |
|
1,876 |
|
|
|
— |
|
|
|
1,876 |
|
|
|
27,975 |
|
Integration costs |
|
30 |
|
|
|
2,197 |
|
|
|
1,015 |
|
|
|
12,208 |
|
Acquisition transaction costs |
|
— |
|
|
|
— |
|
|
|
648 |
|
|
|
6,412 |
|
Other one-time cost or amortization |
|
4,356 |
|
|
|
5,385 |
|
|
|
11,901 |
|
|
|
16,355 |
|
Deduct: |
|
|
|
|
|
|
|
||||||||
Interest and other income |
|
363 |
|
|
|
— |
|
|
|
677 |
|
|
|
— |
|
Warrant valuation adjustment |
|
14 |
|
|
|
133 |
|
|
|
88 |
|
|
|
133 |
|
Gain on redemption of mandatorily redeemable Preferred Units |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,580 |
|
Unrealized gain on derivatives |
|
4,907 |
|
|
|
— |
|
|
|
4,291 |
|
|
|
— |
|
Gain on embedded derivative |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
89,050 |
|
Equity income from unconsolidated affiliates |
|
53,187 |
|
|
|
60,250 |
|
|
|
200,015 |
|
|
|
180,956 |
|
Adjusted EBITDA(2) (non-GAAP) |
$ |
228,005 |
|
|
$ |
211,110 |
|
|
$ |
838,830 |
|
|
$ |
772,189 |
|
|
|
|
|
|
|
|
|
||||||||
Distributable Cash Flow (3) |
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA (non-GAAP) |
$ |
228,005 |
|
|
$ |
211,110 |
|
|
$ |
838,830 |
|
|
$ |
772,189 |
|
Proportionate EBITDA from unconsolidated affiliates |
|
(81,139 |
) |
|
|
(78,388 |
) |
|
|
(306,072 |
) |
|
|
(268,826 |
) |
Returns on invested capital from unconsolidated affiliates |
|
66,599 |
|
|
|
70,978 |
|
|
|
272,490 |
|
|
|
256,764 |
|
Interest expense |
|
(75,411 |
) |
|
|
(56,667 |
) |
|
|
(205,854 |
) |
|
|
(149,252 |
) |
Unrealized (gain) loss on interest rate derivatives |
|
22,862 |
|
|
|
— |
|
|
|
(4,619 |
) |
|
|
— |
|
Maintenance capital expenditures |
|
(11,203 |
) |
|
|
(4,806 |
) |
|
|
(26,268 |
) |
|
|
(12,298 |
) |
Distributions paid to preferred unit limited partners |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,787 |
) |
Distributable cash flow (non-GAAP) |
$ |
149,713 |
|
|
$ |
142,227 |
|
|
$ |
568,507 |
|
|
$ |
589,790 |
|
|
|
|
|
|
|
|
|
||||||||
Free Cash Flow (4) |
|
|
|
|
|
|
|
||||||||
Distributable cash flow (non-GAAP) |
$ |
149,713 |
|
|
$ |
142,227 |
|
|
$ |
568,507 |
|
|
$ |
589,790 |
|
Cash interest adjustment |
|
10,726 |
|
|
|
12,989 |
|
|
|
2,773 |
|
|
|
28,982 |
|
Realized gain on interest rate derivatives |
|
4,736 |
|
|
|
— |
|
|
|
11,818 |
|
|
|
— |
|
Growth capital expenditures |
|
(56,231 |
) |
|
|
(42,409 |
) |
|
|
(296,872 |
) |
|
|
(207,927 |
) |
Capitalized interest |
|
(4,495 |
) |
|
|
(1,485 |
) |
|
|
(18,270 |
) |
|
|
(2,755 |
) |
Investments in unconsolidated affiliates |
|
(32,822 |
) |
|
|
(21,041 |
) |
|
|
(226,947 |
) |
|
|
(76,770 |
) |
Returns of invested capital from unconsolidated affiliates |
|
886 |
|
|
|
— |
|
|
|
6,679 |
|
|
|
— |
|
Contributions in aid of construction |
|
4,404 |
|
|
|
1,455 |
|
|
|
12,243 |
|
|
|
15,799 |
|
Free cash flow (non-GAAP) |
$ |
76,917 |
|
|
$ |
91,736 |
|
|
$ |
59,931 |
|
|
$ |
347,119 |
|
|
||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (Continued) |
||||||||
|
|
Twelve Months Ended
|
||||||
|
|
|
2023 |
|
|
2022(1) |
||
|
|
|
|
|
||||
|
|
(In thousands) |
||||||
Reconciliation of net cash provided by operating activities to Adjusted EBITDA |
|
|
|
|
||||
Net cash provided by operating activities |
|
$ |
584,480 |
|
|
$ |
613,006 |
|
Net changes in operating assets and liabilities |
|
|
4,057 |
|
|
|
(24,682 |
) |
Interest expense |
|
|
205,854 |
|
|
|
149,252 |
|
Amortization of deferred financing costs |
|
|
(6,194 |
) |
|
|
(9,569 |
) |
Contingent liabilities remeasurement |
|
|
— |
|
|
|
839 |
|
Current income tax expense |
|
|
492 |
|
|
|
522 |
|
Returns on invested capital from unconsolidated affiliates |
|
|
(272,490 |
) |
|
|
(256,764 |
) |
Proportionate EBITDA from unconsolidated affiliates |
|
|
306,072 |
|
|
|
268,826 |
|
Derivative fair value adjustment and settlement |
|
|
7,963 |
|
|
|
(4,216 |
) |
Interest income |
|
|
(677 |
) |
|
|
— |
|
Unrealized gain on derivatives |
|
|
(4,291 |
) |
|
|
— |
|
Integration costs |
|
|
1,015 |
|
|
|
12,208 |
|
Transaction costs |
|
|
648 |
|
|
|
6,412 |
|
Other one-time cost or amortization |
|
|
11,901 |
|
|
|
16,355 |
|
Adjusted EBITDA(2) (non-GAAP) |
|
$ |
838,830 |
|
|
$ |
772,189 |
|
|
|
|
|
|
||||
Distributable Cash Flow(3) |
|
|
|
|
||||
Adjusted EBITDA (non-GAAP) |
|
$ |
838,830 |
|
|
$ |
772,189 |
|
Proportionate EBITDA from unconsolidated affiliates |
|
|
(306,072 |
) |
|
|
(268,826 |
) |
Returns on invested capital from unconsolidated affiliates |
|
|
272,490 |
|
|
|
256,764 |
|
Interest expense |
|
|
(205,854 |
) |
|
|
(149,252 |
) |
Unrealized gain on interest rate derivatives |
|
|
(4,619 |
) |
|
|
— |
|
Maintenance capital expenditures |
|
|
(26,268 |
) |
|
|
(12,298 |
) |
Distributions paid to preferred unit limited partners |
|
|
— |
|
|
|
(8,787 |
) |
Distributable cash flow (non-GAAP) |
|
$ |
568,507 |
|
|
$ |
589,790 |
|
|
|
|
|
|
||||
Free Cash Flow(4) |
|
|
|
|
||||
Distributable cash flow (non-GAAP) |
|
$ |
568,507 |
|
|
$ |
589,790 |
|
Cash interest adjustment |
|
|
2,773 |
|
|
|
28,982 |
|
Realized gain on interest rate derivatives |
|
|
11,818 |
|
|
|
— |
|
Growth capital expenditures |
|
|
(296,872 |
) |
|
|
(207,927 |
) |
Capitalized interest |
|
|
(18,270 |
) |
|
|
(2,755 |
) |
Investments in unconsolidated affiliates |
|
|
(226,947 |
) |
|
|
(76,770 |
) |
Returns of invested capital from unconsolidated affiliates |
|
|
6,679 |
|
|
|
— |
|
Contributions in aid of construction |
|
|
12,243 |
|
|
|
15,799 |
|
Free cash flow (non-GAAP) |
|
$ |
59,931 |
|
|
$ |
347,119 |
|
|
|||||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (Continued) |
|||||||||||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
Net Debt(5) |
(In thousands) |
||||||||||
Long-term debt, net |
$ |
3,562,809 |
|
$ |
3,606,962 |
|
$ |
3,625,799 |
|
$ |
3,511,648 |
Plus: Deferred financing costs |
|
31,510 |
|
|
23,038 |
|
|
24,201 |
|
|
25,352 |
Less: Unamortized premiums and discounts, net |
|
319 |
|
|
— |
|
|
— |
|
|
— |
Total long-term debt |
|
3,594,000 |
|
|
3,630,000 |
|
|
3,650,000 |
|
|
3,537,000 |
Less: Cash and cash equivalents |
|
4,510 |
|
|
68 |
|
|
2,237 |
|
|
1,984 |
Net debt (non-GAAP) |
$ |
3,589,490 |
|
$ |
3,629,932 |
|
$ |
3,647,763 |
|
$ |
3,535,016 |
(1) The results of the legacy Altus business are not included in the Company’s consolidated financials prior to |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228510256/en/
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