Earnings call transcript Q4 2022

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Operator

Hello, everyone, and welcome to the Kinetik Fourth Quarter 2022 Results. My name is Nadia, and I'll be coordinating the call today. [Operator Instructions]. I will now hand over to your host, Maddie Wagner, Director of Investor Relations to begin. Maddie, please go ahead.

Maddie Wagner

you. Thank welcome Quarter and Call. Earnings Kinetik's to morning, XXXX Fourth Conference Good

Operating our of with and Todd Vice as of our as Chief President is Carpenter, Milam, Matt and Tyler Finance; Steve Executive our Here Trevor our President Welch, our Chief General me Howard, Administrative Accounting Chief and Officer, Commercial. Counsel; Jamie Wall, and Presidents Officer; Officer; Kendrick Stellato, our Vice well Chris

the slide press today's webcast release to we and The www.kinetik.com. for the are presentation at yesterday, available call access issued

Before all differ we forward-looking including section to described begin, statements, I would statements. what provide from listeners the like remind these will could remarks, that in our results is and actual question-and-answer

call of measures assumptions. certain our that I risks reconcile And also provide we Jamie. will These these provided of do GAAP. over call press earnings that the non-GAAP may Q&A. as to and performance statements are measures not number of after We remarks, performance guarantees prepared turn conform schedules our future the We've to to With not U.S. release. a and part involve open will that,

Jamie Welch

Thank you, for our us afternoon has a of anniversary you Kinetik year our and Maddie. forming everyone, and reported guidance. yesterday issued tremendous We team as done marked morning, XXXX results as our the X-year thank full well job. today. XXXX joining week, Good Last the merger,

beyond above So past thank you and this to going for employees year. our

million, was our guidance our in revised and range thank investors, the EBITDA your from pro safe all reliable of above year always, and support. I Yesterday, like within full have as we forma both They guidance people February. notably you, which for August operating while last provided manner. successfully integrated $XXX.X our a initial XXXX in and to merger, continued assets And reported following would adjusted

December. commodity of despite Storm fourth late prices quarter, impacts the in Winter in Elliott December, was and in the weaker This particularly

results, This north we gathering our our best-in-class strategic vision to further Mexico of to our provide Mexico. and gathering expanding and addition our another into and long This is company. highly part producers candidly for project been project important network. announced operations extend In New to yesterday our strategic system New extremely County, access processing has gas Lea transformative Kinetik's

The a minimum processing system commitment and new large Delaware a gathering agreement an cap into a is expansion the investment with as fully a supported This counterparty. substantial with market volume grade will within long-term serve entry Basin. project under

of in north miles large Kinetik Kinetik's from Texas, We and complexes. gathering [indiscernible] processing pipeline County, into New existing will XX more diameter, high-pressure Mexico construct existing the new system than Loving County, Lea

of to XXXX transition new The customers Next. it the project execution for Kinetik an see version of in is sets existing of best and in will of development early that basin opportunities significant activity up us and is as be year and very to growth Think Kinetik itself the XXXX. first potential. and that XXXX be commercial service area in estimated with to both quarter an in continues additional position

placed at have expansion. strategic of Delaware of service will the We which a number PHP and Link be underway, projects the end year, including this in

mid-single-digit in our expansion all with that amine XXXX. at cash into growth our customers further materially impressive will Mexico as processing and and residue as a in treating New EBITDA projects and XXXX. treating to in profile providing for Gulf enhanced the of offering These result These And year, reliability front-end us improve allow both flow egress well of while will to service the all Coast. projects change next differentiated blending our complexes are

the conflict would offering that saw events, Last of more in X of residue the FID XXXX not New customers capacity outlook constrained resources, the Mexico. natural Coast commodity we for the product importance last overall constraints We discuss gas already to price become that prices. compelling pipeline notably year we Gulf geopolitical Southern commodity XXXX our benefited higher Permian most experience. anticipation areas and from remiss projects reinforce liquids and U.S. oil, the even believe year, Russia-Ukraine We will of producers gas given natural to products, have natural including gas, begun to reached that crude in capacity be

was quarter this when in In Waha. The pricing will In year. pipeline in help we the PHP fact, XXXX, events and resulted Whistler market the how we XXXX, saw, the depressed latter planned at continued volatility of and fourth Waha. constrained tight expansions in at maintenance expect of price actually part

given billion cubic gas the X and face X.X will this of throughout forecasted to new natural continue from annual growth feet pipelines basin to billion constraints of we the However, Permian day require decade, out Basin. per the

to the will most Coast. Permian continue LNG critical feedstock notably provide residue Gulf gas for on the global demand,

prices commodity favorable as in XXXX. not XXXX will to relative As it to be Kinetik, pertains

been have touch we derisk this, hedging we will actively exposure However, momentarily. XXXX our which on to

X, the XXXX BCP will once many reduced Altus to earnings closed our combination X. service, quarterly capacity be Additionally, to in results, basis, assuming and the Similar business the between figures a our of PHP XXXX. on forma reported placed will exposure to Waha be pro today January is expansion predecessors, on our previous

results of believe guidance. more year our and We our actual full it reconcile to XXXX helps reflective is

the Moving for reported commodity Despite across prices guidance August. to benefited logistics on our transportation our recent XXXX in winter and EBITDA meeting pro Page and segments. revised forma increased the of we weather year, lower volumes presented million highlights both $XXX.X pipeline midstream We events, adjusted from X.

processing X commenced our quarter. gas agreements quarter, the fourth and on last call gathering in large mentioned As

processed volumes the in we quarter. As record such,

and XXXX. of part Our core from DRIP Management I of have reinvest as Blackstone, Squared to their continue Apache, shareholders, XXX% the dividends in agreed base shares to their

and shareholders Kinetik team have I that conviction highly if statements X in our believes their our This their target. the will their while program, worth emphasize core It the XXXX undervalued. preserve leverage chance reading The support release, current our stock management's to XXXX yet growth. the so. much our had institutional of to do its price at working future recommend cash press you help and in its X.Xx capital management towards very fund continuing In our actions. is is company also noting not and

So the team has approved bonuses has to and requested Kinetik performance the XXXX pay stock. Board in

us for under the expected the authorized to stock At program acquired The a program also Board price DRIP. be be repurchase current XXXX of issuance DRIP over DRIP shares has allow from our year. levels, We core longer-term believe and will under issued our the stock would the investors million shareholders. stock to beyond program. afford stock opportunistically expected acquire repurchase control do while more our to power Any and repurchase $XXX in partnership share us with at is the that reissued XX% to our of short-term repurchase investors under earnings the represent and and reflect program levels the increase not price acquire potentially continuing

now the our provide an call like Matt Chief Wall, hand to I over operational Operating to would update. Officer, to

Matthew Wall

Cryo day gathered per for In XX,XXX cubic new a the efforts up year. in increase day start were at resumed representing quarterly and approximately X% record currently of completed their per cubic and day X.X April normal gas feet XXX,XXX fourth at volume Crude Thanks, as barrels of customer process X% were and up budget volumes Diamond XXX recycling our feet and quarter, incremental day, quarter-over-quarter. is capacity volumes this under and achieved XX% quarter-over-quarter expansion year-over-year. scheduled billion The is up we construction of deliveries. largest million per barrels a on to year-over-year per Water-gathered flat Jamie.

In $X units. this million avoided the XX of XXXX, to we over of or rental XX,XXX with horsepower operating expense replaced compression surplus company-owned translated addition compression Annualized, of savings.

the allows latent price of environment. on year. budget system complex completed This and important time today's super at also in technology, commodity is Cryo system the Diamond in on and us resulting We leverage the in project SRX to last especially recoveries. This capacity the interconnect enhanced June access

inflationary additional the compression and expect savings respect plan than In also additional achieve relocation tax the million to of operating synergies rental merger. We merger approximately originally The we G&A rental the XXXX, replace cost $XX $XX expenses, valorem We cost to synergies. cost more achieved time reductions or of XX,XXX at anticipated ad announcement. in represent adding integration rates. following to through today, million projects particular, horsepower compression of with avoid compression of given an environment the an

at Front-end to Pecos the East would our complex treating amine Bend with our previously processing customers receive and complexes Pecos and spec. expansion margin in service have us addition that will treating off and at in will this been of also be in allow result The later year considered XXXX. Toyah to complexes gas the placed cryo

HXS higher to us allowed the has treating into content. of Mexico, has our addition the and where gas New example, For expand operations COX

pipeline ESG-related our this targets This Link, as progressing per billion Link cubic by Toyah we Bend be sustainability-related first day track in our substantial and capital wholly XXX% service goals. link per million placed past to cubic XXX The initiatives, X for is planned. to X Pecos and East sustainability gas on midstream also feet the directly have feet became in year. year, PHP. to we Delaware cryo our The and of will the towards Delaware only expansion owned complexes remains to remains project track connect company debt made November to X intra-basin day progress a performance residue and PHP service. structure on November of

reductions. of X greenhouse gas intensity emissions linked are sustainability performance and X Scope targets methane X and X Scope to

goals, the and our and of heightened increased new Over practices several progress to emissions including we reduction leak implementing training. past year, repair the began detection strategies technology, application

update later an on progress year. provide will this our We

corporate representation which increase to above XXXX, XX% average. sustainability our just we over corporate to representation increased is Already our our in industry in seeks officer XX%, female target third peer performance female and Our positions by officer XXXX. to positions

we commitment program of XXXX to pay ESG-related our reinforce goals. the approach. XX% same tied achievement to risk repeat all specific XXXX, our at the of ESG compensation In employees initiatives, will To

initiatives look report With turn would our to our like that, providing XXXX review to results publish our and to I ESG XXXX Trevor We XXXX achievements. call guidance. context Howard midyear, the over on will additional sustainability our present to and financial

Trevor Howard

we $XXX of Staying in EBITDA adjusted on of XXXX. fourth Page Matt. X quarter reported million Thanks, the

free a and adjusted per of $X.XX On leverage coverage share million January with of cash cash also distributable dividend ratio remain XX, X.Xx our flow declared representing flow pro ability for generated an to long-term and $XXX a We exited dividend, we million. the of We quarterly our $XX quarter. target of forma the cash a forma X.Xx. quarter Xx leverage achieve ratio pro in confident

Link. Delaware Total capital specifically, pipeline and was funding and associated with million, $XX the which expenditures for of more million $XX segment the quarter PHP for the were transportation expansion

segment EBITDA the Midstream adjusted a was in Year-over-year, our despite fourth $XX a the Our quarter. generated pro adjusted $XXX Logistics headwind quarter. X% forma segment million million EBITDA of in up commodity

during Elliott second crude December. affected on Winter the volumes gas Storm Additionally, our and half system of

However, record we had revised segment, met to adjusted despite the winter our of year-over-year. weather, prices we commodity weaker We million, our guidance. up full Shifting $XX year Transportation XXXX Pipeline EBITDA and another quarter. generated X%

For flow the cash distributable EBITDA million pro we adjusted cash of free $XXX XXXX, forma reported year of of and full $XXX flow. million, million

And all of Our the which our exceeded relocation reductions, XXXX $XX synergy in million, Transportation were with target million of approximately synergies segment. of of was we EBITDA $XXX compression Projects, $XX expenditures total realized other cost lastly, XXXX the capital system $XXX optimization for million cost million. and which through year Pipeline integration associated

would XXXX outlook Pages our and like guidance XX. which to on can you discuss through find I Now X

adjusted million. guidance $XXX to XXXX million $XXX is Our

with strong remains in XXXX business underlying performance. respect and to operational Our volumes

year-over-year. contracts begin the will as segment, several are benefit prices of Logistics this lower commenced new our number XXXX fourth Midstream quarter XXXX from annualization a which as year. commodity the in However, of Within of will contracts well that

we our modest year-over-year. current from customer growth expect Additionally, contracts

XX% year-over-year. gas Taken an profit is midpoint together, increase with in fee-based guidance a processed on increase the our in volumes predicated of XXXX gross XX% almost gas

over volumes representing to year with the per of XX% feet increase processed day fourth volumes. billion gas a expect quarter gas X.X XXXX process We approximately cubic exit

amine $XX realize synergies EBITDA front-end We of of approximately million compression optimization treating. expect the relocation projects, year further to this through total system additional and installation

year. the of the these Delaware and will Pipeline projects PHP this segment, the at year. be this for expansion of spent Transportation all placed service be the Link Within end capital in Almost will

However, we EBITDA year a XXXX. not see will until full benefit

the to end within projects EBITDA pipeline reductions million. adjusted annualized XXXX at from transportation service December are price estimate we such, to the $XXX As In of commodity placed in segment approximately our fee-based logistics and expected offset earnings be this midstream contributions the XXXX, growth year.

full exposure On our we price have guidance. XXXX to price sensitivities XX, year detailed Page our commodity and

MMBtu forward WTI, prices gas guidance liquids. $X.XX gas assumes $XX $X.XX for and for per per barrel natural XXXX per approximately natural of approximately gallon market Our for

barrel liquids. were For than natural MMBtu XXXX prices greater gas actual per gallon comparison, for per $X.XX over natural gas approximately $X.XX and for $XX per for WTI,

approximately in reduction is gas a that crude, XX%, Note and gas liquids prices. natural year-over-year and XX% XX%

Permian and and As to discussed earlier in likely placed transportation pricing by gas until gas growth capacity gas year in turbulent Matt, translates continued a later service utilization high XXXX. for projects rates new pipeline the this year are supply at Waha natural

our I natural will our of protected gas PHP. gas further Staying this our and in-service natural against Kinetik of volatility ethane we Gulf be exposed on the project, by commodity Less expansion processing XXXX. dynamic, front this effectively not price would with of is over direct is running and will given and X. PHP profit hedges volumes gross late exposure exposure and And customers in pricing natural to several on plants than recovery in that in XXXX equity influenced XX% spread total reduce of equity XX% commodity This of layered the gas to Waha prices, Coast our note prices. result us and

decrease A gross commodity to impact is profit or by XXXX in X.X%. increase XX% expected prices

as actively Board-approved the XXXX fund growth and hedging projects. remains exposure continue throughout strategic We derisking so been have several Capital the through do to expenditures our guidance will elevated program year. our commodity we

$XXX is This of $XXX $XXX million. pipeline and of million million logistics to transportation $XXX $XXX million $XXX guide includes capital to to XXXX million million Our midstream capital.

logistics midstream high-pressure of of includes million guidance maintenance projects, gathering and of $XX capital remaining Our million $XX and million growth integration capital our $XXX capital.

will XXXX expansion contracts. of capital further the Following high-pressure system capital and the Pipeline there with support integration transportation the gathering guidance capital remaining spend the The Mexico and projects. no $XXX Delaware Link includes spend. capital announced to XXXX, be expansion New expenditures includes million associated PHP previously

our when expenditure capital expansion. line with XXXX excluding previously Our communicated guidance Mexico in is the New expectations

In program to new spend million, no capital expansions. Shin return processing expect of and the capacity than XXXX, a $XXX for nor assuming we less Oak to GCX

XX. Page to Turning

As we great strides XXXX made previously announced, in balance up our clean sheet. to we

preferred XXXX. to our and we swapped July. fixed XXXX fully exposure completed our redeemed Later to in $X refinancing the rate billion floating we fixed the First, Series comprehensive A through A in sustainability Loan link year, $X and June April of through billion Term in rate May XXX% swapped of floating

as percent As XX% a to reduced less than floating exposure approximately April debt result, XX% Kinetik rate and of current been has thereafter. through total a outstanding

and a additional our ratings. and We target to continue committed exposure additional derisk X.Xx leverage notes rate actively We issuances. swaps floating will to achieving through investment-grade remain credit

allocation We a dividend our to expect have priorities. and to per we maintain dividend increase once quarterly met recommend our capital we look share minimum $X.XX in XXXX, X%

would I open for like that, Q&A. to lines And with up the

Operator

of our Energy And to today goes Cusimano Partners. Instructions]. first Michael Pickering question [Operator

Michael Cusimano

on question like has But come a up times growth of feel funding horizon. opportunities bit it's the mark. of or I few kind a a Interesting

Permian gas high interest we've an gas long-haul you or of that own some pretty pipes in So multiples. Is instead of you equity? option pipelines? some your seen that Could got sell the some debt

Jamie Welch

the to we is in existing always as from our night for make best context processing fill It's last New completely opportunities announced complexes. sure standpoint probably presented our So what with you're some means a Jamie. big which Mexico, by obviously that are and interesting with the growth think of deal us up Michael, I question. right thanks the we Look, for we evidenced

as as I we've It's look have within certainly Targa it button and But for not. we contemplate last -- not nice there we forward ruminating and on we've been or take-or-pay, whether we something opportunities is only a Obviously, it and going a is think this exists expanded is easiest Honestly, will more GCX forward. about the continue the different by a at growth probably mark opportunities, what contracts. firm. we're sale. marker that acting we point, of it toolkit consider We're there up, as get far private to our actually thinking out there's about. definitely As done year straight but out question got going duration that equity

Operator

And question Sachs. the next of goes Jackie Goldman to Koletas

Jacqueline Koletas

First, I open your sense you're a would that you just in there? Bcf capacity baking expect a was wondering could Permian overall I what of if you in gas for thinking like how to you touch additional processing. you've around contracts give much for processing growth were commented and X.X Basin day

Jamie Welch

Jackie, answer what as as this. the far So far it's in we But nothing. of is answer as contracts, baking let are additional Trevor I'll Jamie. part as

In on I therefore, customers, and fact, our conservative. being, we're existing more risked we think probably

I as cross side, overall think X.X growth, the we Permian as per As to residue far expecting basin think about day. X I earlier, wide intimated Bcf we're on obviously a just

as Trevor, a Permian to think as -- of we we're going growth think actual still will some in benches as continue customers the some of we see we're the anything last as seeing growth gas different be that stack, our that residue Bcf start to out We the continue believe saw I overall -- to far gas we're of start X and increasing hydrocarbon experiment to seeing day coming year. GORs the we to pretty on add. for robust.

Trevor Howard

question, Jackie. for Thanks the Yes.

contracts Mexico, the the sort to gains with think genesis question potentially the representative I this is from expansion what just Mexico was gathering last achieving last market middle New And point, we baking into our existing be in grow your I New forward were announced in? night, XXXX. in our completed achieve extending share of customers. announced we're but sort year think not is of share And and as gains that to with of should are the are vantage expect that going think or of continue market pretty move I that we of think project the into I and to morning new the XXXX and

Jacqueline Koletas

quick And Great. Okay. a just follow-up. to have

Given low, Apache's are gas how are activity Alpine thinking prices High you that specifically? on so about

Jamie Welch

see result of got Alpine far to a activity and year, as year. of the the which at High proceeds the quarter, the couple activity, will wells end the contractually we've you of as So committed that as of this sell-down for most development rest the the is first was a of last the from obviously,

a really than XXXX it's is So Alpine phenomenon it gas growth for High XXXX.

obviously, are obviously, this you this of pickup we've overall in a look been in commodity And out And context expectation. gas gas saw pretty as of seeing, as got you far We year. year in year. assumptions, the price gas burdened towards we've we've our end prices being of our the seen, as $X.XX next into the overall as obviously, -- part first

-- So we're to side. I Apache the come, more think, on

Sorry, end this come see year, we'll way but lot a like to really to a development what of start think looks outline of high long more saying I forward. it, the going

Operator

And of the next Dounis question to Spiro goes Citi.

Spiro Dounis

wanted Lea County, agreement in the go could. I we to new to if

entrant basin You to obviously, you're guys there. mentioned, new the

against much incumbents, commercial out curious, any And there how of strategy that you that about activity high as able CapEx sort as and of do also And XXXX of you do you to to levels is this you I'm activity mentioned going considered path, look in of on you that? so of highlighted. the be how think to just continue you're the winning you guys and think business

Jamie Welch

I'll VP and our it there. of let a I as Chris we opportunities million, about portion overall gross -- is, is with capital of obviously think But overall so end in one far sort up it pipeline the we've the Kendrick which the this as the is side. year VPs that of on me of start $XXX of Commercial Commercial, see got talk is allocated So then who our have

to you straw straw of high Mexico we ability do significant that obviously blend not, Mexico that, And New -- Spiro, far to our portion which have been process able the to is you actually to But it, got but been treating. in some to HXS, have with the one Mexico. We've this to and we you the -- element, as COX, capabilities look and we going system, New this by into higher a is point, but have in we've system the portion take some we complexes, changes itself so have see connection at a of end with by that the high-pressure have amine year historically nitrogen. Once up into that of the that a as place have New the blend actually all next the processing and both footprint. which across our treating year of will all front-end because related

in I think And we tandem as see working opportunities both together. that the Chris? far So out as it's there,

Chris Kendrick

mentioned gone Look, Chris. for to we've last this Kinetik when Matt's the we've it's is a for over years a time as customer. couple of has run done before, And and long #X North pretty time this due of team and running the because Spiro, with operation is goal great think EagleClaw. the were I that's even and a lot to what when this for at strategic exciting we back Jamie been a to

to New able Gulf to think for we about New to moving offer Texas, the customer As a in Mexico residue Coast. solution molecules for in delink to gas processing effectively and those pretty be our ultimately Mexico, us, exciting pipe it's through

compelling constrained. pretty New these for are Mexico customers a That's of some who solution in

and here So be about able we're the in discussions growth future. to excited to hope more have some to talk these

Spiro Dounis

Curious much that 'XX. come the run to guys it. then to waiting behind for system moving how of the million for G&P PHP volume you Got reflects of $XXX And to pointed the rate online. December

the of side? up we service November, the ramp on you see the of PHP G&P way at several those expect once quarters sort fact rush I of volumes the in enter of see don't in kind Some system. end the Could after does back kind of

Jamie Welch

really -- like, this pricing exactly year that's November, where in We, that perspective. looks I a in which seeing. relief. obviously, have agonized December, over, as the a runway -- really of one we've obviously, that's some the fair ourselves, been team, end towards a probably probably that that turn-in-line management what elements a is think fair of given start forecast back to we're of we're the the depressed we particular, And seeing, see is

I expansion will start think activity got of -- particularly the when online. do PHP the Whistler we So see and we'll towards more we've back year,

give ability then I of for a what next think that and will the the the basin to second work will actually of steps out be. breathe sort

Spiro Dounis

Last Got sneak one, could it. it I quickly Great. just if in.

Just looking a flow. nice free out XXXX, point fairly is like inflection it to seems cash in setup today the for

coming CapEx got You've down.

have You be lot obviously projected a EBITDA higher. to

So capital about few that come as allocation. think up options does you with

of just got so you've curious, things going a robust growth. I'm lot several And obviously,

deleverage You've of sort some and that trying grade. of next to an investment maybe so this capital achieve return Then year also you're return expectation and year. you sort to

when guess you a you in XXXX I are of have front you? thinking do So little flow how options those about in cash free more

Jamie Welch

and X.Xx I laid to think for overall are is far that think dividend. allocation target priorities that the then we've center our I as is committed as And our raising Look, out the us obviously, capital -- leverage concerned. objectives front

Operator

Mizuho to goes Securities. Mosca our And Instructions]. of next [Operator Robert question

Robert Mosca

a acquisition potential desire Grand just wondering Just now wondering, identified affects I is as off your a that the target. to how have guess, know table. I'm you mindset that, so Prix that to guys I connectivity we providers system? perhaps closely that Could more EPD. your see specific involved as asset downstream or shift fractionator the such of getting midstream aligning more the on with increase

there. to thoughts your Just curious hear

Jamie Welch

like I a say Look, to having been we integrated business. consistent have we think vertically

we capital spend significant that this saying in think got we've that I a for year. realize

We balance core and our in have with to and prudent standpoint. shareholders appropriate hands that it credit a sheet manner obviously is from stacked an make funded sure

I again. it in less grow going expect XXXX important we to And to start $XXX that forward million that of is think than the focus not capital literally we

critical. first our -- -- was think us So to I priority interesting that the else of really Anything is Kinetik expansion or our PHP first importance. is -- was Delaware for order New nowhere do core near and for critical. absolute NGL, critical. not length was business that was Treating Mexico it's but vision.

set think out right producer some now, our going we or as 'XX well they're whether or got see growth longer that particularly see Central from So New and customer good pretty we obviously whether overall opportunities, we've I what in as tailwinds, Mexico as is Reeves in they're . our

Robert Mosca

are other That's it. wondering pipeline and if signed GCX prices better that And wondering, you now presumably We've helpful the with contracts color, some expansion. on bit seen that a I'm we Jamie. expansion expand little gas look Got are for outlook also could greenfield fuel offerings. these lower. just prices does lower

Just wondering keeping that what's on a lid expansion happening? from

Jamie Welch

say, would I Robert, it's very interesting.

really sense. existing me think yes, that this there it Kendrick, make want in fuel do could at We I may you think in on on on about talk a PHP, in and really sits pipeline, new are an overwhelming if They emphasis Board Increasing with by look, the ground. is we quickly, there who new the steel Chris percentage -- our and egress. pinch a is particular, you producers lot.

the to with with they to happened quick. But Midland, I were what hat think good built job. GCX, think access take lateral I They able volumes. obviously that Whistler, did a They were the honestly, got my They into off incremental done. they really I so

So they a I job. good really did think

think done likely mean is mostly I hearing GCX Kinder FID-ing potentially don't GCX, world, Warriors small then -- probably and of fits. And next they've -- think other think be months at getting Warrior us, that GCX the obviously, still you'd do is, don't percentage. in I where you'll XX a more the it pipelines know ask I about the I we'll just and engaged pipelines or -- have for point, think to I it's I is been

I'm GCX not the do expansion Chris, cards near just sure term. agree? you But in is in the

Chris Kendrick

also, And new versus overwhelmingly the we since expansions. Producers the this the in is as expansion, a ground well. Jamie And steel said. I agree these in bit little fourth with Rob, softened want market PHP what Chris. did pipeline

Matterhorn XXXX. coming later on You have in

take So project Kinder looking it, being it's going to a is said, With the just still team more to at done. get time that see we'll what happens. and

Robert Mosca

kind And wanted confirm Great. I remarks. just I X last I prepared heard quick Great. in thought just what maybe to of your one.

you Just more XX%. at and that the million when share offered XXX% to, I these $XXX to didn't program, the why PIK you buyback be shares that price absolutely just guess, of down comes could it that's of function just opportunistic are take

more, the have you share purchasing autonomy price guess, some you're I Just over at.

Jamie Welch

exactly. means we've that's we our significantly the relates to be on following to, it has is we to ultimate under what given opportunity our seem to That market price price now, buyback the than fully do us. also on we if doesn't as will so, something undervalued. mean, DRIP the have quarters ability capitalize issuance given think a and Board the a then that it lower that's then that the got appreciating, we capitalize Robert, fact, right If I great. price -- the at in look that and

for of think us. self-help we I a thought mechanism it just great as So

Operator

you. Thank

any back have Jamie further I'll to for We no questions. Welch closing hand remarks.

Jamie Welch

circuit. transition, up relatively time morning. this year everyone, of shortly for catching the and your you conference execution forward Thank excited year we on look all We're XXXX our to for you, and with

much, and day. So great very thank a have you

Operator

for much call. now you This so joining. you. today's Thank Thank concludes

You disconnect your lines. may now

Kinetik (KNTK) 28 Feb 232022 Q4 Earnings call transcript