Thu, May 8, 9:24 PM (10 days ago)
**Kinetik Holdings Inc. (KNTK) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $443.3M, up 30% YoY, driven by higher service and product revenue from recent acquisitions. - **Net Income:** $19.3M, down 46% YoY, due to increased operating costs and interest expenses. - **Operating Income:** $19.3M, down 26% YoY, reflecting higher costs and expenses. - **Cash Flow from Operations:** $176.8M, up 15% YoY, indicating strong operational cash generation. - **Cash Flow from Investing:** -$260.1M, significantly higher capital expenditures due to acquisitions and projects. - **Cash Flow from Financing:** $88.5M, reflecting borrowings and dividend payments. **Profit Margins:** - **Operating Margin:** 4.4%, down from 7.6% in Q1 2024. - **Net Margin:** 4.4%, down from 10.4% in Q1 2024. **Earnings Changes:** - **EPS (Basic):** $0.05, down from $0.12 in Q1 2024. - **EPS (Diluted):** $0.05, down from $0.12 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by Durango and Barilla Draw acquisitions, increasing service and product revenues. - **Cost Increases:** Higher costs of sales, operating expenses, and depreciation due to acquisitions and new projects. - **Interest Expense:** Increased by 17% YoY due to higher borrowings and interest rates. **Trends & Uncertainties:** - **Commodity Price Volatility:** Impacted by global geopolitical conflicts and trade policies. - **Interest Rates:** Elevated rates increase financing costs, affecting debt obligations and operational expenses. - **Capital Expenditures:** High spending on acquisitions and projects, funded by borrowings and operational cash flows. **Future Operations Impact:** - **Kings Landing Project:** Expected completion in mid-2025, adding processing capacity. - **Share Repurchase Program:** $500M authorized, depending on market conditions. - **Dividends:** $0.78 per share declared, payable in May 2025. **Segment Performance:** - **Midstream Logistics:** 98% of operating revenues, driven by gas gathering, processing, and crude oil services. - **Pipeline Transportation:** 7% of operating revenues, equity investments in Permian Basin pipelines. **Liquidity & Capital Resources:** - **Debt:** $3.57B, with $1.25B revolving credit facility and $148.8M A/R facility borrowing. - **Cash & Equivalents:** $8.8M, with strong operational cash flow generation. **Risk Factors:** - **Trade Policies:** Tariffs and trade restrictions impact commodity prices and construction costs. - **Geopolitical Risks:** Conflicts and economic conditions affect commodity prices and demand.