Permian Basin pure-play Kinetik Holdings Inc. revised its 2024 guidance after seizing opportunities in New Mexico and the Delaware sub-basin in the second quarter, and increasing processing volumes despite challenges from anemic natural gas prices at the Waha hub.
The Midland, TX-based midstream company, which operates natural gas assets to Gulf Coast markets and beyond, revised its earnings estimates for the year to $940-980 million, versus $905-960 million earlier this year.
“That is a 3% increase at the midpoint versus the previous guidance range midpoint, and implies over 14% growth year/year at the midpoint,” CFO Trevor Howard said during the second quarter earnings call. The revision reflected earnings outperformance throughout the first six months. Kinetik bought Durango Permian LLC , a platform in the Northern Delaware Basin. It also sold its 16% equity interest in Gulf Coast Express pipeline.
