Kinetik Holdings Inc. (KNTK): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how the energy that powers our lives gets from the ground to our homes and businesses? Let's explore Kinetik Holdings Inc. (KNTK), a key player in the midstream energy sector, specializing in gathering, processing, and transporting natural gas and crude oil. With a record full year 2024 Adjusted EBITDA growth of 16% year-over-year, reaching $971.1 million, Kinetik has solidified its position in the Permian Basin, but how exactly does it operate and generate revenue? Keep reading to find out more about Kinetik's history, ownership, mission, and business model.

Kinetik Holdings Inc. (KNTK) History

Kinetik's Founding Timeline

Year established

The company was formed in 2012.

Original location

The company is headquartered in Midland, Texas.

Founding team members

While specific founding team members are not explicitly detailed in the provided search results, it is known that the company was created with an initial focus on the Permian Basin.

Initial capital/funding

Details regarding the initial capital or funding for the company's formation are not available in the provided search results.

Kinetik's Evolution Milestones

Kinetik's Transformative Moments

• Riverstone Holdings LLC Acquisition (2015): This acquisition was a transformative moment, providing the company with significant financial resources and strategic guidance to expand its operations and market presence.
• Name Change to Kinetik (2019): The rebranding to Kinetik marked a strategic shift, signaling the company's broader ambitions and evolving service offerings beyond its initial focus.
• Merger with Altus Midstream (February 2022): The merger with Altus Midstream significantly increased the company's scale and diversification, creating a stronger, more competitive entity in the midstream sector. This merger enhanced operational capabilities and market reach.

To gain more insight into the company's purpose and guiding principles, you might want to read about: Mission Statement, Vision, & Core Values of Kinetik Holdings Inc. (KNTK).

Kinetik Holdings Inc. (KNTK) Ownership Structure

Kinetik Holdings Inc. has a multi-layered ownership structure that includes public shareholders, private equity firms, and company insiders. Understanding this structure is crucial for investors and stakeholders.

Kinetik Holdings Inc.’s Current Status

Kinetik Holdings Inc. is a publicly traded company, meaning its shares are available for purchase on a stock exchange. This allows a wide range of investors, from individuals to institutions, to own a portion of the company.

Kinetik Holdings Inc.’s Ownership Breakdown

The ownership of Kinetik Holdings Inc. is distributed among various types of shareholders. While specific percentages may fluctuate, the following table provides a general overview based on the latest available data:

Kinetik Holdings Inc.’s Leadership

The leadership team plays a vital role in guiding Kinetik Holdings Inc.'s strategic direction and operational execution. Key figures include:

• Jamie Welch: President and Chief Executive Officer
• Marshall McCrea: Executive Vice President and Chief Financial Officer
• James Macheca: Executive Vice President and Chief Operating Officer

These individuals, along with other members of the executive team and board of directors, are responsible for the overall management and performance of Kinetik Holdings Inc.

For more detailed insights into the company's investors, check out: Exploring Kinetik Holdings Inc. (KNTK) Investor Profile: Who’s Buying and Why?

Kinetik Holdings Inc. (KNTK) Mission and Values

Kinetik Holdings Inc. aims to provide comprehensive midstream services in the Permian Basin, focusing on safety, reliability, and creating value for stakeholders. The company's values likely revolve around operational excellence, integrity, and a commitment to the communities in which it operates.

Kinetik Holdings Inc. Core Purpose

Official mission statement

While a specific, formally published mission statement for Kinetik Holdings Inc. is not readily available, their core purpose can be inferred from their operations and strategic goals. Based on available information, a synthesized mission statement could be:

To deliver safe, reliable, and efficient midstream services in the Permian Basin, creating sustainable value for our customers, employees, communities, and investors through operational excellence and strategic growth.

Vision statement

Similarly, a formal vision statement might not be publicly available. However, a reasonable vision statement for Kinetik Holdings Inc. can be formulated based on their activities and objectives:

To be the leading, most trusted midstream service provider in the Permian Basin, recognized for our commitment to safety, operational innovation, and creating long-term value for all stakeholders.

Company slogan/tagline

As of April 2025, Kinetik Holdings Inc. does not have a widely publicized official slogan or tagline. However, potential taglines that reflect their business and values could include:

• 'Powering the Permian, Delivering Value.'
• 'Safe, Reliable, Efficient Midstream Solutions.'
• 'Connecting Resources, Creating Opportunities.'

For more in-depth insights into Kinetik Holdings Inc. and its investors, check out: Exploring Kinetik Holdings Inc. (KNTK) Investor Profile: Who’s Buying and Why?

Kinetik Holdings Inc. (KNTK) How It Works

Kinetik Holdings Inc. operates as a midstream energy company, providing a range of services including gathering, transportation, processing, and treating of natural gas and crude oil, primarily in the Permian Basin. The company generates revenue through fees charged for these services, based on volumes handled and contractual agreements with producers.

Kinetik Holdings Inc.'s Product/Service Portfolio

Kinetik Holdings Inc.'s Operational Framework

Kinetik operates through a network of strategically located assets to provide midstream services. Key aspects of their operational framework include:

• Asset Base: Owning and operating extensive gathering and transportation pipelines, processing and treating facilities, and water disposal infrastructure, primarily in the Permian Basin.
• Contractual Agreements: Establishing long-term, fee-based contracts with producers, ensuring stable and predictable cash flows.
• Operational Efficiency: Focusing on maximizing throughput and minimizing operational costs through technological upgrades and process optimization.
• Safety and Compliance: Adhering to stringent safety standards and environmental regulations to ensure responsible operations.

Kinetik Holdings Inc.'s Strategic Advantages

Kinetik’s strategic advantages are built upon its operational capabilities and market positioning:

• Strategic Asset Footprint: A significant presence in the Permian Basin, one of the most prolific oil and gas producing regions in the United States.
• Integrated Service Offerings: Providing a full suite of midstream services, creating synergies and enhancing customer value.
• Strong Customer Relationships: Maintaining long-term relationships with key producers, fostering repeat business and growth opportunities.
• Financial Discipline: Maintaining a strong balance sheet and focusing on capital efficiency to support sustainable growth and shareholder returns.

To learn more about Kinetik Holdings Inc.'s financial standing, check out this in-depth analysis: Breaking Down Kinetik Holdings Inc. (KNTK) Financial Health: Key Insights for Investors

Kinetik Holdings Inc. (KNTK) How It Makes Money

Kinetik Holdings Inc. primarily generates revenue through natural gas gathering, processing, transportation, and treating services for producers in the Permian Basin.

Kinetik Holdings Inc. Revenue Breakdown

While precise percentages for each revenue stream may fluctuate and up-to-date information is not available, a general understanding can be gleaned from available information. Keep in mind that the specifics can vary based on market conditions and operational adjustments.

Kinetik Holdings Inc. Business Economics

The company's business economics are influenced by several key factors:

• Fee-Based Agreements: A significant portion of Kinetik's contracts are fee-based, which provides a stable revenue stream regardless of commodity price fluctuations.
• Throughput Volumes: Revenue is directly correlated to the volume of natural gas and natural gas liquids (NGLs) that flow through its systems. Higher throughput translates to increased revenue.
• Processing Spreads: The difference between the value of raw natural gas and the separated NGLs impacts processing margins. Wider spreads benefit the company.
• Operational Efficiency: Efficient operations, minimizing costs and downtime, are crucial for maximizing profitability.

More information about the company can be found here: Mission Statement, Vision, & Core Values of Kinetik Holdings Inc. (KNTK).

Kinetik Holdings Inc. Financial Performance

Analyzing the company's financial performance involves looking at key metrics that demonstrate its operational and financial health.

• Revenue Growth: Consistent revenue growth indicates increasing demand for Kinetik's services and effective capacity utilization. Keep in mind that the specifics can vary based on market conditions and operational adjustments.
• EBITDA Margins: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins reflect the company's operational efficiency and profitability. Higher margins are generally favorable.
• Capital Expenditures: Monitoring capital expenditures (CAPEX) is important, as investments in infrastructure are necessary to support growth.
• Debt Levels: Evaluating the company's debt levels and leverage ratios is crucial for assessing its financial risk.

Kinetik Holdings Inc. (KNTK) Market Position & Future Outlook

Kinetik Holdings Inc. is strategically positioned to capitalize on the growing demand for natural gas transportation and processing, with a focus on the Permian Basin. The company's future outlook is closely tied to its ability to execute expansion projects and maintain operational efficiency amidst fluctuating commodity prices.

Competitive Landscape

Opportunities & Challenges

Industry Position

Kinetik Holdings Inc. holds a significant position in the midstream sector, particularly within the Permian Basin. The company's assets and operational capabilities enable it to play a crucial role in connecting producers to end-markets.

• Focus on operational efficiency and cost management to enhance profitability.
• Commitment to environmental sustainability and responsible operations.
• Investment in technology and innovation to improve asset performance.

To gain a deeper understanding of the company's guiding principles, explore: Mission Statement, Vision, & Core Values of Kinetik Holdings Inc. (KNTK).