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Kinetik (KNTK)

Altus Midstream Company is a pure-play, Permian-to-Gulf Coast midstream C-corporation. Through its consolidated subsidiaries, Altus owns gas gathering, processing and transmission assets servicing production in the Delaware Basin and owns equity interests in four Permian-to-Gulf Coast pipelines.

Company profile

Ticker
KNTK
Exchange
CEO
David Clay Bretches
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
Former names
Altus Midstream Co, Kayne Anderson Acquisition Corp
SEC CIK
Subsidiaries
Altus Midstream Company • Altus Midstream GP LLC • Altus Midstream LP • Altus Midstream Gathering LP • Altus Midstream Processing LP • Altus Midstream NGL Pipeline LP • Altus Midstream Pipeline LP ...

KNTK stock data

Analyst ratings and price targets

Last 3 months

Calendar

10 May 22
24 Jun 22
31 Dec 22
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 17.65M 17.65M 17.65M 17.65M 17.65M 17.65M
Cash burn (monthly) 361K 1.11M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 1.01M 3.11M n/a n/a n/a n/a
Cash remaining 16.63M 14.54M n/a n/a n/a n/a
Runway (months of cash) 46.1 13.1 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
15 Jun 22 Anne Psencik Class A Common Stock Sell Dispose S No No 38.85 822 31.93K 156,012
3 May 22 BCP Raptor Aggregator Class A Common Stock Conversion Acquire C Yes No 0 585 0 585
3 May 22 BCP Raptor Aggregator Class A Common Stock Conversion Acquire C Yes No 0 3,624 0 3,624
3 May 22 BCP Raptor Aggregator Consideration Allocation Rights Class A Common Stock Conversion Dispose C Yes No 0 585 0 269,350
3 May 22 BCP Raptor Aggregator Consideration Allocation Rights Class A Common Stock Conversion Dispose C Yes No 0 3,624 0 1,667,780
3 May 22 Blackstone Holdings III Class A Common Stock Conversion Acquire C Yes No 0 585 0 585
3 May 22 Blackstone Holdings III Class A Common Stock Conversion Acquire C Yes No 0 3,624 0 3,624
3 May 22 Blackstone Holdings III Consideration Allocation Rights Class A Common Stock Conversion Dispose C Yes No 0 585 0 269,350
3 May 22 Blackstone Holdings III Consideration Allocation Rights Class A Common Stock Conversion Dispose C Yes No 0 3,624 0 1,667,780
3 May 22 Welch Jamie Class A Common Stock Option exercise Acquire M No No 0 27 0 1,362,898
13F holders Current Prev Q Change
Total holders 103 73 +41.1%
Opened positions 41 18 +127.8%
Closed positions 11 16 -31.3%
Increased positions 34 26 +30.8%
Reduced positions 13 16 -18.8%
13F shares Current Prev Q Change
Total value 1.46B 1.25B +16.0%
Total shares 76.65M 15.38M +398.3%
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners Shares Value Change
Blackstone Holdings III 34.58M $0 +9296.0%
ISQ Global Fund II GP 14.55M $0 NEW
APA Apache 13.02M $1.11B 0.0%
APA APA 9.02M $0 NEW
Aventail Capital 901.05K $58.58M NEW
ATAC Neuberger Berman 707.23K $45.98M +1005.0%
Vanguard 366.26K $23.81M +113.3%
Kayne Anderson Capital Advisors 327.83K $21.31M +1077.9%
BLK Blackrock 306.51K $19.93M +41.9%
Tortoise Capital Advisors, L.L.C. 299.44K $19.47M NEW
Largest transactions Shares Bought/sold Change
Blackstone Holdings III 34.58M +34.21M +9296.0%
ISQ Global Fund II GP 14.55M +14.55M NEW
APA APA 9.02M +9.02M NEW
Aventail Capital 901.05K +901.05K NEW
ATAC Neuberger Berman 707.23K +643.23K +1005.0%
Highbridge Capital Management 0 -324.96K EXIT
Kayne Anderson Capital Advisors 327.83K +300K +1077.9%
Tortoise Capital Advisors, L.L.C. 299.44K +299.44K NEW
CNS Cohen & Steers 220.54K +220.54K NEW
HITE Hedge Asset Management 202.29K +202.29K NEW

Financial report summary

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Risks
  • Failure to complete, or significant delays in completing, the BCP Business Combination could negatively affect the trading price of the Class A Common Stock and Altus’ future business and financial results.
  • The pendency of the BCP Business Combination could materially adversely affect the Company’s future business and operations or result in a loss of personnel.
  • The BCP Contribution Agreement includes restrictions relating to the conduct of the Company’s business while the transactions are pending, which could adversely affect the Company’s business and operations.
  • The failure to successfully integrate the business and operations of the Contributed Entities in the expected time frame may adversely affect Altus’ future results.
  • Altus derives a substantial portion of its revenue from Apache, and if Apache changes its business strategy, alters its current drilling and development plan on acreage dedicated to Altus, or otherwise significantly reduces the volumes of natural gas or NGLs with respect to which Altus performs midstream services, Altus’ revenue would decline and its business, financial condition, results of operations, and cash flows would be materially and adversely affected.
  • Altus does not have any employees and relies entirely on services provided by Apache’s employees.
  • Altus’ executive officers and directors may face potential conflicts of interest in managing the Company’s business.
  • Substantially all of Altus’ gathering and processing operations are located within the Southern Delaware Basin of West Texas, making it vulnerable to risks associated with having revenue-producing operations concentrated in one geographic area.
  • Apache may suspend, reduce, or terminate its obligations under its commercial agreements with Altus in certain circumstances, which could have a material adverse effect on Altus’ financial condition, results of operations, and cash flow.
  • While Apache has granted Altus a right of first offer to provide additional midstream services and acquire Apache’s retained midstream assets in Alpine High, Apache does not have to accept the Company’s offer.
  • A significant amount of the revenue currently generated by Altus is from contracts with Apache that contain most favored nations rights and other consent rights, limiting flexibility to offer certain rates or capacity to new shippers.
  • If Apache elects to sell acreage that is dedicated to Altus to a third party, then the third party’s financial condition could be materially worse than Apache’s, and Altus could be subject to the nonpayment or nonperformance by the third party.
  • Apache owns a majority of Altus’ outstanding voting shares and thus strongly influences all of Altus’ corporate actions.
  • The COVID-19 pandemic has and may continue to adversely impact the Company’s business, financial condition, and results of operations, the global economy, and the demand for and prices of oil, natural gas, and NGLs. The unprecedented nature of the current situation makes it impossible for the Company to identify all potential risks related to the pandemic or estimate the ultimate adverse impact that the pandemic may have on its business.
  • Construction and maintenance of Altus’ assets (including the Equity Method Interest Pipelines) subjects the Company to risks of construction delays, cost over-runs, and negative effects on its financial condition, results of operations, or cash flows.
  • If the Company seeks to acquire assets or businesses but is unable to do so on economically acceptable terms or is unable to successfully integrate any acquired assets or operations, its future growth will be limited.
  • If third-party pipelines or other midstream facilities interconnected to the Company’s gathering, processing, or transmission systems become partially or fully unavailable or if the volumes Altus gathers, processes, or transmits do not meet the quality requirements of the pipelines or facilities to which Altus connects, its cash flows could be adversely affected.
  • Increased competitive pressure could adversely affect Altus’ financial condition, results of operations, or cash flows.
  • Altus may not be able to retain or acquire new customers, which would reduce Altus’ revenues and limit its future profitability.
  • Altus does not own in fee the land on which its assets are located, which could result in disruptions to its operations.
  • A failure in Altus’ computer systems or a terrorist or cyberattack on Altus or third parties with whom Altus does business may adversely affect the Company’s ability to operate its business.
  • Altus’ business involves many hazards and operational risks, some of which may not be fully covered by insurance. The occurrence of a significant event that is not fully insured could adversely affect Altus’ operations and financial condition.
  • Altus owns or operates a portion of its business with one or more equity interest partners or in circumstances where Altus is not the operator, including the Equity Method Interest Pipelines, which may restrict its operational and corporate flexibility; actions taken by other partners or third-party operators may materially impact the Company’s financial position and results of operations, and Altus may not realize the benefits it expects to realize from an equity interest.
  • If any of the Equity Method Interest Pipelines experience cost overruns or do not generate the cash flows Altus expects, the Company’s plans for growth and dividends will be impaired.
  • Altus is dependent on the supply of commodities to its system, and any decrease in such supply or the volumes that Altus gathers, processes, or transmits or any decrease in Altus’ processing efficiency would adversely affect its financial condition, results of operations, or cash flows.
  • The Company’s exposure to commodity price risk may change over time.
  • To maintain and grow its business, Altus is, and will be, required to make substantial capital expenditures.
  • The capital and global credit markets have experienced volatility and disruption in the past, and further volatility and disruption may have an adverse effect on Altus’s ability to access the credit markets to finance its operations or expansions.
  • The discontinuation and uncertain cessation date of LIBOR, and the adoption of an alternative reference rate, may have a material adverse impact on Altus Midstream’s floating rate indebtedness and financing costs.
  • Altus is exposed to the credit risk of its customers and counterparties, including Apache, and their nonpayment or nonperformance could have an adverse effect on the Company’s financial condition, results of operations, or cash flows.
  • Altus may be required to take write-downs, write-offs, or restructuring and impairment or other charges that could have a significant negative effect on its financial condition, results of operations, and stock price.
  • The Company’s ability to utilize net operating losses and other tax attributes to reduce future taxable income may be limited if the Company experiences an ownership change.
  • Altus’ ability to pay dividends depends on its ability to generate sufficient cash flow, which it may not be able to accomplish.
  • Altus’ only significant assets are ownership of the non-economic general partner interest and an approximate 23.1 percent limited partner interest in Altus Midstream LP, and such ownership may not be sufficient for Altus Midstream LP to make distributions or loans to Altus to enable it to pay any dividends or satisfy its other financial obligations.
  • Holders of Altus Midstream’s Series A Cumulative Redeemable Preferred Units have rights, preferences, and privileges that are not held by, and are preferential to the rights of, holders of Common Units, and could dilute or otherwise adversely affect the holders of Common Units.
  • Altus may be unable to obtain or renew permits necessary for its operations, which could inhibit its ability to do business.
  • Altus is subject to regulation by multiple governmental agencies, which could adversely impact its business, results of operations, and financial condition.
  • Altus may become subject to the requirements of the Investment Company Act of 1940, which would limit its business operations and require it to spend significant resources to comply with such act.
  • Unanticipated changes in effective tax rates or adverse outcomes resulting from examination of Altus’ income or other tax returns could adversely affect its financial condition and results of operations.
  • Altus is a “controlled company” within the meaning of the Nasdaq listing rules and, as a result, qualifies for, and intends to rely on, exemptions from certain corporate governance requirements.
  • The JOBS Act permits “emerging growth companies” like Altus to take advantage of certain exemptions from various reporting requirements applicable to other public companies that are not emerging growth companies.
  • Although Altus has registered the shares of Class A Common Stock issuable upon exercise of the warrants under the Securities Act, such registration may not be in place when an investor desires to exercise warrants, thus precluding such
  • investor from being able to exercise its warrants except on a cashless basis and potentially causing such warrants to expire worthless.
  • Altus may amend the terms of the warrants in a manner that may be adverse to holders with the approval by the holders of at least 50 percent of the then-outstanding public warrants. As a result, the exercise price of your public warrants could be increased, the exercise period could be shortened, and the number of shares of Altus’ Class A Common Stock purchasable upon exercise of a public warrant could be decreased, all without your approval.
  • The warrants are exercisable for Altus’ Class A Common Stock, which will, upon exercise, increase the number of shares eligible for future resale in the public market and result in dilution to Altus’ stockholders.
  • In the future, Apache may receive earn-out consideration in the form of shares of Class A Common Stock upon the achievement of certain stock price and operational goals, which would increase the number of shares eligible for future resale in the public market and result in dilution to Altus’ stockholders.
  • The Preferred Units may be exchanged for shares of Altus’ Class A Common Stock at a discount under certain circumstances, which could be dilutive to existing holders of its Class A Common Stock.
  • A significant portion of Altus’ total outstanding shares may be sold into the market in the near future. This could cause the market price of its Class A Common Stock to drop significantly, even if its business is doing well.
  • Altus’ charter designates the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by its stockholders, which could limit its stockholders’ ability to obtain a favorable judicial forum for disputes with Altus or its directors, officers, employees, or agents.
  • If Altus fails to maintain an effective system of internal controls, it may not be able to report accurately its financial results or prevent fraud. As a result, current and potential holders of the Company’s equity could lose confidence in its financial reporting, which would harm its business and cost of capital.
  • If the performance of the Company does not meet the expectations of investors, stockholders, or financial analysts, the market price of Altus’ securities may decline.
Management Discussion
  • ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  • Unless otherwise noted or the context requires otherwise, references herein to Kinetik Holdings Inc.,“the Company”, “us”, “our”, “we” or similar terms, with respect to time periods prior to February 22, 2022 include BCP and its consolidated subsidiaries and do not include ALTM and its consolidated subsidiaries, while references herein to Kinetik Holdings Inc. with respect to time periods from and after February 22, 2022 include ALTM and its consolidated subsidiaries.
  • On February 22, 2022, the Company consummated the previously announced business combination transactions contemplated by the Contribution Agreement, dated as of October 21, 2021, by and among the Company, the Partnership, Contributor and BCP. Pursuant to the Contribution Agreement, in connection with the Closing, (i) Contributor contributed all of the equity interests in BCP and its consolidated subsidiaries, to the Partnership; and (ii) in exchange for such contribution, the Partnership issued 50,000,000 Common Units and the Company issued 50,000,000 shares of the Company’s Class C Common Stock to Contributor.

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