KNTK - Earnings call transcript Q1 2024

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Operator

Good morning and thank you for attending the Kinetik First Quarter 2024 Results Call. My name is Elisa, and I will be your moderator today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end.I would now like to pass the call to our host, Alex Durkee's, Investor Relations. Alex please go ahead.

Unknown Executive

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

is We've These not these over Other presentation differ measures of release. part senior speakers our attendance yesterday, a performance Howard, and We statements Officer. in statements question-and-answer Welch, these are the reconcile and and section for also described our of Jamie. that provide to and Financial Our our press we performance may open Jamie as of Officer; that this call measures President access our After involve forward-looking do morning's that, webcast today statements. of assumptions. provided also risks the team non-GAAP the are from remarks, for management to are release Chief GAAP. call.The guarantees Executive Chief not press members in certain our future we Q&A.With and conform Gap] the turn issued today's provide number actual will US including call could remarks, results and prepared what the slide will earnings to call I [Audio to will Trevor schedules

Jamie Welch

thank Waha you quarter volumes Link. adjusted year-over-year, Highway year results Kinetik strong yesterday Thank Permian you, Good XXXX and gas quarter reflecting and from We our growth East first at a activity quarter, day, EBITDA in volume XX% producer Cryo representing depressed joining expansion processing on County down throughout processing $XXX underlying our contributions for growth May. scheduled maintenance Kinetik reported a several and and internal morning, to Pipeline processed ahead.First everyone, billion of positioning facilities, ahead an maintenance and in planned Lee Delaware March robust less winter our than million, we April April cubic We result was budget our opportunistically in January.During afternoon, call planned and projects at Toya these momentum High a turn-in-line of Alpine increase X.XX facilities. We Bend the the Alex. starting X% and commencement X. our today. ramp exceptional prices as continued for completed and weather quarter-over-quarter, Diamond had with to projects due curtailments contract the start feet and Pecos own early exceeding the of year-over-year per XX%

critical and not Spring our the Avalon across explore services previously accept become of blending levels basin. manage Basin. support the to phase HXS stands of the offer gas benches for the did system and our enhanced now at time. for a facility safe project More we recoveries As a would and front-end result like customers. outs, of commitment April. system Pecos We can reliability hard safety with Bend the operations during to our their this phenomenal plant recently, team and ensuring we and COX next Kinetik elevated and blending treating massive the out job to and producers have growth our to processing will efficiencies.I system-wide change bed work operations specifications.As the improved and thank boundaries completed in meet that system Delaware amine this Treating of treating our installation our They different and as of and Bone expand the quality further such gas ready did

period the capacity Coast the following of with is Link, to had of County, Delaware the expansion producers prices that went The month NVC-backed access further our into on we their sold and April. April threshold. gas but Gulf prices opportunities at incremental in-service well receiving gas positions continue Mexico system by particularly in combined $X.XX wellhead markets in-basin capabilities, ahead Waha pressured our the over gas placed XX, capacity, Lee at gas into and expansion our County, Gulf our our partnerships price existing volumes during share from premium with not in we X, As can and stability. into January natural and Coast X. with blending shifted to are negative expansion Kinetik's markets, March, daily customers exposure customers and service enhanced pricing a top schedule.The Lee PHP in out forecast agreement gathering market Gulf Waha producers X rather gas equity negative MMBtu of we egress than the we on reserve reminder, the capture only Kinetik's with effect placed to February early Coast, until in-basin shared currently call, benefited expansion mind the which Many during treating Hub.As volatile in months pipeline solution. prices generated Waha new at New March in also Mexico.Furthermore, PHP and above The December New Waha Coast even basin.We priced offers the offer more With of for along of to natural now depressed since Kinetik averaged need handsomely in it have of service. of in-service integrated been PHP has per Waha this additional of in-basin the to having on strengthened Gulf

it fund However, execute now stakeholders.Moving $XX XXXX along with average Kinetik. completed the shareholders core the prior in December, quadrupled in Subsequently, $X.X facilitated further their alignment in strong daily on exited remaining million. the preferred offering first A as we a our Kinetik This and us their customers key demonstrated March, When secondary March and ownership Series fully I redeeming and our forward, Trevor. Kinetik are I with today. priorities, trading for with demand payment X, to starting Permian which capital Coast. egress nearly very commitment we was XXXX secondary, with in want from float increased that, now payment elevated was support to in for to investors dividend in excited hand participation saw the to story.And dividends. reinvest volume nearly to Gulf to to combined dividends shareholders exceptionally offering, with important all March It centers receive and fully our all that billion like and the secondary our demand enabled positioned their call the program. to would high continued public cash thank quarter in the belief upon and Apache's investor we're our over the such the financial to commitment well We

Trevor Howard

first of EBITDA million. the In quarter, we Jamie. adjusted reported Thanks, $XXX

opportunities our quarter, results, EBITDA XX% flow an an year-over-year was our increased and enhanced marketing generated of million and capacity.Shifting quarter, EBITDA within Logistics segment on of the $XXX up our Sequential an free $XX Midstream gas processed million, adjusted segment, generated driven PHP largely and was For up year-over-year, the volumes we flow XX% to quarter-over-quarter. XX% by million.Looking our of Transportation million expectations, the growth distributable we at captured and contributions Pipeline million, generated our adjusted cash we $XXX propane, adjusted cash segment X.Xx. $XX the in segment butane gathering from Mexico commodity planned percentage expansion.To leverage average for quarter Total which as were ratio approximately our the in lower was expenditures completed than maintenance agreement New the several for at the capital projects credit quarter.Our internal commodities, expansion stands on Delaware a Link crude. driven PHP with across by of and and XX% is full X on date, volumes our exposure hedged equity higher months pertaining to the hedge $XXX

A the pay series $X loan to the We also the down an gas. prices used natural XXXX.Looking in incremental to on term months securitization especially facility an in taken AR us volatile of December the of to steps continue extend to to shareholders, which receivable our for ahead, A additional $XXX XXXX, facility we March, generating Jamie allowing X proceeds executed from April. existing value expect commodity for for addition In maturity earlier, in touched billion, Term million to we the accounts

constructive benefit collectively an As natural environment. gas more a price from we industry,

stands to marketing and our to well on peers to with to incremental provide allowing access its opportunities.Despite Kinetik continue current gas However, customers capacity Gulf us to pricing positioned to capture relative PHP oil-directed to negative response unchanged our we and at seen at activity of in system, volumes prices activity return prices, the March Waha Alpine on producer High gas Hub. Coast have in remains the following curtailed

third the for use of in revenue another sale complexes a Infinium, step-up initiatives. eFuels a ultra-low or of I planned to Roadrunner.Notably, We in stream in Kinetik. production with proprietary using the shifting X reflecting captured a Kinetik, significant to We project in projects, have expect of continues create cost agreement processing synthetic made heavily leader of dedicate dioxide Infinium's like carbon quarters.Before capital second carbon for process one into from we there activity share weighted would the first-of-its-kind will operating the on eFuels to customer an see our production sustainability MVCs the industry the are remainder and completion progress development that entered the of to the Q&A, our quarter and the in feedstock Mexico second this at and of project their through maintenance volumes to year, the as

everyday emissions required and our greenhouse more emissions gas We summer early methane that, XXXX and made broader that upcoming surpassed as with strong for target we and XXXX, initiatives. forward to we for of in our others Throughout in report.And this well detail methane would Our compared have Scope which key focused emissions considerable efforts ahead operations. XX%, gas and to to a in have a by line decarbonization as the X the I greenhouse Kinetik's XX%, serve XXXX and XX% intensity XXXX furthering sustainability remain model open intensity When we intensity investment, Scope this on X look the partnership support hope is schedule.Despite providing can Q&A. human even respectively. reduction we And reduced methane financial now industry reduction our our sustainability pillar like progress capital this of of baseline, and achievement, efforts.

Operator

Thank you.

question-and-answer now of the Instructions] Blum session. Michael [Operator Fargo. first from will question begin with line The We the comes Wells

is line open. Your now

Michael Blum

QX. Thanks. full the In internal noted forecast everyone. really release, question on your first Good year exceeded for of guidance. just guess the sort you that morning press is you I

the that does towards imply you range? of could coming wondering, be that end just higher So that

Trevor Howard

question. days, looking good we're And with now. respect very numbers we've guidance got we're are range. well trending April things at right obviously, overall Early even -- obviously -- just our just Michael, to

what think spoken did before last because things we've But complement we're feel I us. a of pricing it's really which every like this we when team we I in Michael, sports the had time of stub to going I yes, most statements to I'm any of first spoke to about.And to negative done are saw game, all -- and to But weather where to ways I we got January. we go, more. with quarter first X we investors or just a So end the down. of all still a got wait all that's end didn't And sure up. ultimately you, checked, about we in I the we making job quarter, the can't reason is, not quarters want with changeouts, We've what we did had say, of quarter if bed the winter's think some think communicate fantastic. our winter maintenance looking X a we've hell operations Waha. of have it of good, not I toe ahead but number is that a They the

volumes, we the it, that's the reason had had we saw we short and I going. some system. you a should And business High factors because we you answer that a what say, and phenomenal, to resilience we give hit operational a is it Apache kept have the of the performance cause parade think, is, we and would that So the to curtailing, a then phenomenal Alpine didn't of of of complement and the took

Michael Blum

to And expansion, potential to of sense. Any makes in ask terms just that then No, updates there I Great. up. set Okay. on wanted GCX. level just

then greenfield I there's have point, are participate gas kind broader in And hold. is, question think some that no you sort of is process at appetite Thanks. the of these -- to sales kind Permian takeaway percolating? an the this projects of of on

Jamie Welch

price pretty today, just been I minus bucks. it we on you as Yes, of Cash the on appreciates. relates consistent expansion, we've happen. So $X going it's audience, GCX tell It Waha just minus the everyone so -- to was think a feel folks, that saying question this just would I confident, $X for time. morning,

look, capacity. help drive we I isn't to know need So is. what egress say, if don't from more a everyone that for

to more totally As we on it that yes, side, participation need egress. the relates believe we greenfield

seen We position, just which this from this We is and got lot think and Case a Diamondback have We're to I for we got others. folks a and we've fix this. we together of because get commentary like we privileged got fun the valuable. not PHP that to very capacity, because anybody. recognize incredibly to at is in

And Our it, of we impediments it, to out of Permian to coalesce as recognize basin us that and saying of behind behind the services our position egress that, get Basin. customers new because ultimate out everybody helps behind customers we the the this appreciate -- will even we one potential we appreciate be significant it need this the else. think, more really and an differentiate need, versus industry, says

Michael Blum

Thank you.

Operator

next line of the Citi. Spiro with comes from Dounis The question

now is open. line Your

Spiro Dounis

Alpine Thanks, back point still could for just on not some original rest Jamie, the could the operator. to I imagine you're of the in if go, tailwinds were seeing that the Good High back. put the wondering left a maybe of was that Trevor if talked I but morning guidance. the contemplated not a to coming we lot year team. year know activity go finer you perspective, outlook foreseen. the of about

So of of here? sort tailwinds those up of curious how sort many are adding

Jamie Welch

that question. Spiro, So thanks morning. for Good

Tuesday. on right. you seeing to forward Looking All

Trevor there been mentioned it's I here. really the recoveries say, curtailment. performance coming High the far When As say, would various that's are fantastic. that's tailwinds lifting components. the back, Alpine would just really I as operational have It's been the

of we end this the of when recall, we most did at we plant bed to February, do, needed you change-outs. lot of we call maintenance had said If a

We Toya, had We on. Bend. going had think done East We it time it we had had had we compressor First had I at Pecos We Diamond. maintenance. board. the across lots

that recoveries we're through fantastic. have have been that, been Now the They fantastic. really

to performance we so, And want Matt team, really grow and led hop I this [Audio how I done Wall, and on a business that's think because Gap] have -- by phenomenal because you our operational reliability, job.

really customer for and we've beat. of High, are there tailwinds.I And we was We're there, shoots haven't a volumes that thresholds business anything, system directed So The world gas that we're the well. as change it we're coming say prices doing and Mexico, And above of recoveries And seeing if -- that particular, are fundamentals the in think would drilling see. all the Trevor as behavior far green reinforces out missed mentioned, strength New as I got. here for negative just hasn't the concerned. out changed. Alpine to only that's really the of

Spiro Dounis

it. Got hear. That's to great

maybe one, Second market turning just share. to

a able more gas maybe little there. quality about You to now. it bit treating you're see side, accept sounds gains talked you was X areas range broader a One, on the where of could

yet first, mentioned then from you're I new for the room on upside or how side? volume just how if seeing more you you about that gain to egress that and on there? And also to is more guess curious customers the much think So side. impact there the customers

Jamie Welch

think as in let's order. reverse I go as far

that customers, weighted can Gulf Coast. gas option. have Both them people sales packages On price do an and us have in would Waha. have the When Coast they Waha gas, They approaching of can tell calculation customers and a new to existing you have residue we for fact, They Gulf every pricing. a to, mix average give we're of customers side, about for open day. new we egress like always us

we we and so And us, have the more want you Gulf build telling relationships get. opportunities customers would embed to concept that I to more say hey, the benefit that development right? way And you the I we is a future Coast, think partnership. that and you more of relationships think, and news of about you And continue your concept as partnership, have

we're the also space but have performing, manage can contractually we've these folks. do owner we question got we've not PHP how given We've trading is want with it's just taken. we to of first people. a you many Trevor, and got on side? dialogue the just the some So that that space majority do this constant -- And then, just take of And because that

Trevor Howard

XXX% expansion, now, processing right asset precious Yes. say, Thanks to for benefits any up that's is really what question, which right? is the Because I'd Spiro. a remaining seeing on where side, we is it bottom some spare fantastic, the in margin without line the volume are really basin which capacity. see the we incremental but is taking

seeing that mean system-wide with fully complete. front now the right and we're benefits treating So a

We margin. and out the commercial remaining then And sour have suite an now to team processing. immediate step space, continue is up both working for the to sell in and treating right gas

Jamie Welch

in And And mentioned we got February HXS. across that have structure fully actually step much elevated in obviously, obviously And we really get the we the customers board are the call, we're of seeing, tiering fees. now as we've stair a COX. of We've that. treating levels context a accommodating have got pretty we how or some

we impurities. all pipelines of out. which pointed obviously that it, paid get it's obviously, we have and massively to from some our system levels meets because and have nitrogen gas business COX. size no makes of blend And as the have of the has lot are the And gas gas, interesting -- of beneficial it the it, we has And sweet And We about which is in the is of a even coming tariffs. out, where backed we We -- Trevor have what's we're and seeing the right? impurities higher the producers. X for gas, pulling customers sources the virtually

the think, win-win, across So we it's board. a

Spiro Dounis

leave Got forward all there That's great. look it. to I seeing week. you will and next it

Jamie Welch

We'll you see Tuesday.

Operator

Richardson question next from The you. comes Scotiabank. Thank line of Tristan the with

now Your open. line is

Tristan Richardson

up your you guys. you in maybe may NGL about side talk NGL of of third-party a then could downstream. see barrels context mean, these how And I solutions the about Can little pipe couple talk of recontracting. Hi we morning Jamie, once trending you thinking a on closing come particularly good Kinetik that in we're about see expansions the online? bit expansions. for

Jamie Welch

Tristan, good question. morning, thank you the for

as we've So side. on as far NGL far -- as clear been the think I pretty

commitments. different X have We

inherited We with Bend. have Ventures, legacy enterprise obviously -- Cryo. commitment in inherited is There in Midstream And Diamond to East the the is one Lone on plants. primarily foundation of shippers have you pipeline. we the We Eagle And that the was Rock. to large was Core then we Cap some and Star to know, Enterprise only one enterprise of respect some with was relation which what Toya part of Pecos Apache the because as the the to Shin one have commitment connection Oak all is

where open Diamond. think have a XXXXs.And in CRYO. processing Diamond have from the come have and with on of in with at back we them, space off. entire obviously first then principles we that merger, you complex saw standpoint we was And There and -- commitment then go of Star beginning have we Lone with Targa contracts if So system about you XXXX. Grand we our and will roll or to Prix the -- out two they up the dedication obviously will -- through are the what Where early continue

to XXX only Cryo is tenant up is Diamond is sits It fill the other Apache. at from to Diamond expanded Our it that XXX, We the is best be recoveries. to Cryo. job

we a obviously And say, economically. EPD so a we It's flexibility. Oak utilizing Shin flexible X/X us space. Oak very that well. beneficial And very, that gives with we've mutually been really on of beneficial, own very Shin as would And therefore, I arrangement have

flexibility further future the to that when So we've stars decide -- relates all rolls we got expansions, good a that to make aligned respect certainly as off. think with to literally, obviously Rock Cap contract flexibility are it as we'll relates to it outcome.As barrels,

what of lot pretty and of flexibility something whether announcements. the got to We right tight work we've think team do as So sort a these the about Anne Psencik future. the we we on can next. We're plenty spent time has been now. in basin trying about to fact, It's see out obviously, of think that that all focused

every see the out. stream lot you will all $X, more going so can to We're we're not than on. frames. of they've barrel -- barrels And jamming because the fundamentals infrastructure. Time as at In you owner a want recovery the going what only like, customer the whether in fact, of a X.X they time work we're how ones trying these going day day as to pricing that to this There's with been negative when look possibly looking fact, the necessarily like and a 'XX to I'm 'XX, the still will to coming ethane you're pressure of forward, good obviously at mid are much what, of play it's to any not out power get tell expansions can. is million in incremental

it's by and and things. right, insignificant, So not Daytona other her

I that, look, going a really So interesting think to to watch. segment be it's do

we're off. not of the that said, dedications will I roll ones. There's other only lots As

contracts off time 'XX, 'XX roll would what say, of the NGL exactly X.X As happens. the frame 'XX, see, in sort you I see and

Tristan Richardson

there term, as in you always, to more as mean, done coming rest And we is 'XX? about in talked about of men's, I low you project just May near for particular increasing. the in, it, the a talk and turn-in-lines maybe about expectations March maintenance for think for April cadence Jamie. should year thinking lead counting time volumes turn-in-lines double-digit Appreciate then see above the

Jamie Welch

do what Trevor, you think?

Trevor Howard

consistent most quarter late XX% to first of have really our quite quarter, years, development, past in takes of generally, TIL over of year. the by then development we And the see what second the of XX% out our not coming few especially place. it's our in look, and September, TILs TIL storm, most seen winter -- It's Tristan. from question, the for Thanks Yes. we where

now. High in ramp expect where right going the last year, clear second throughout wells the we on we the Alpine completed have pricing pipes for similar of that continue higher saw that bringing producers are TIL to are of the on volume a our once issues the producers So the maintenance curtailments return should egress and We're should fiscal programs tick year And mid-summer, balance up of with should and XXXX. levels the to until come we in-basin recovers. see volume up quarter year

Tristan Richardson

Appreciate it. Thanks, gentlemen.

Trevor Howard

Tristan. Thanks,

Operator

Thank question the you. next The Wolfe Research. with from Keith comes Stanley of line

open. now is line Your

Keith Stanley

Hi, good morning.

First, on I wanted the up follow just to Alpine High curtailment.

So you're expecting and the point? ends, is you them how guess, at volumes do And good about once doing Kinetik just on? this to overall come High I G&P to how then feel volumes back them month? keeping maintenance meaningful this Alpine later that And

Jamie Welch

Keith, good morning.

So as did we've actually, see return we seen a already of volumes. as far

shutting be PDP do time, a you reservoir periods risk you've damage. got think to potential extended in the mindful for for I of

I think, obviously, the So an of with be seeing look, for important overall cognizant sort and I can almost longer-lasting and you got And think, those that High be that between to something be yes, impact, going the think can DXL, of gas across to your the it's that, is they of and the seeing What from of has return in still strength the business weeks done of comes volumes, happen And think, the as has -- when fact, how obviously I with have everything X first the they've you we're just as of in incredibly the board.As have is, very sort comes impacted and I the in a operates pretty think and context forma us. should of Callon online. immediately much think of and is about May.So, whether we our got ramifications. And waiting see probably profit they in pipeline it Apache and Alpine for choke is look, you've Callon, because Right. into pro of business, way it our the it [indiscernible]? I conscious High and it context far the volumes, we're basically of auto be if as as week continued -- GTX then the sit back increased we're Alpine about that even about XX% comes only I it should may, well doing -- said, and we question of in we maintenance balance it is despite and got system nice and And as think back And April, fully to next relates just that the out much gas what's prices. return, when then done. concerned. to not PHP

Trevor Howard

curtailments, do also it's have small positive space. the with gas net a the in that see the do I'd for prices Keith, given of where It jump space we company, equity it's a warrant on actually that actually we a PHP. -- amount acts as in-basin open nice natural hedge

-- this the and been we're here maintenance actually and getting And in March so in it's been in through April, it's nice while season hedge a shoulder basin.

Keith Stanley

helpful. That's Thanks.

It how about more like seems at Second next some have question, you you into this year? opportunities opportunities. are just point growth thinking

thoughts You we a Should think of opportunity a Mexico, investments plant of maybe for look any II set Phase new have around potentially GCX just you at accelerating in the expansion. and year New or into that? as company next growth the is

Jamie Welch

we'll discipline what out look the Keith, those as obviously, we to opportunities, think capital as successful we'll I opportunities Kinetik. look, overall to about highly far that see you've far identified of the are we making EBITDA. about And see there, sort trajectory board. -- We at always We've on. opportunities organic XXXX talked that how means we growth sort we're that to accretive that side, and continue are think of the looking as what of sure about for been obviously and obviously, to are very on thinking as continue that is able opportunities. some secure of the and mindful and And have Look, think, we already, are the and we that very as across those they the growth value complex

Keith Stanley

Thank you.

Operator

question Thank you. of from Mackay the John next Sachs. comes The line Goldman with

Your open. is line now

John Mackay

Thanks it agreement. on might Infinium the ask morning. good Hey the time. for Figured

I to think come XXXX. used the projects online in

Just for you could more this what of that size the kind could opportunity next. to frame of watch if of guys up you can what there's do interested you if of the be guys kind

Jamie Welch

you. the on Tyler our the Thank -- business Ventures morning. who Infinium has runs Milam, with been new good deal. John, We've Energy architect and got the

want you do Tyler, to So that take away?

Tyler Milam

just let cryogenic Sure. Thanks, Jamie. to complexes with via we just Road is have know, this that one Hey contracted so you Runner Infinium. of John, yes, Project our

to guess, so even still kind other versus the we qualify, I still have slate our we're complexes. on is X -- what are evaluating And quantify, of

definitely capital gas think I see to so best but to only daily the into our some a room and at reduce to also turning to way objective, our not that continue our emissions greenhouse run, And we no there's revenue stream as corporate organization.

Jamie Welch

was interesting take Yes, sour BCP traditional what Eagle was gas. which conversion system to suite Claw it's John, old that of Rock a on Infinium system, a concept that the the the predicated whole was Cap could behind

return. all fully us. We working give can you therefore, can with We, their got is tonnage, much created by eFuels. into we pipe, and that nice really convert are levels a they process, with then sour this a No capital, no see they It's gas. for. using said, and the it OpEx seeing paid obviously, more Tyler for can COX We greater tonnage stream COX of Infinium

for byproduct on COX, treating by we're our stream. paid we're we the with the side creating, So customers. incremental getting which getting that is are paid the direct COX And

John Mackay

makes That great. And next sense. on touched kind question. of my That's you

the bit little touched sour up a and size producers of you too. of on maybe feels It this gas I feels keeping aren't opportunity peers there on can it But the kind your call, it up. earlier some just in maybe necessarily frame pretty of You like overall. midstream large. pushing some there's mean

processing, up side, of broader on So if just treating opportunity et you that wondering, gathering, kind could frame cetera. both

Jamie Welch

We'll let the take floor. Kendrick Mr.

Chris Kendrick

of our as go question. COX we customers Hi amount great and formations, to north a higher drill see is And continue as earlier, basin the in Look, we've it's some amount John, and we shallower this of Chris. nitrogen. as to a higher alluded

has been, Diamond. and incremental treating of treat I'd one point have that down is is other installed So gas.One to is like our fees capacities we make, once our to additional at trading some goals add too,

Matt able So, our team the to COX more we looking extract optimize system, the fees at there. operations is be system so to ways and can add to to

think I the great. So opportunity is

the benches. cuts think these from great I are oil

So able to the only customers to be not but solution the a the nitrogen. treat want handle COX,

a to that to get producers try number about we currently talking a front there. So are of in solution of and

Jamie Welch

And it's to Chris, we also the water. I produced formations think, and on that see shallower water Avalon true, Spring, Bone less

Chris Kendrick

That's right.

Jamie Welch

which the is produced is element from costs is I So side. water is net think of the on significant huge an element, do obviously that having with and the and deal producer benefit this, water there a to for an gathering as disposal Not them. much

producers our decision-making of the goes So and the think into I process overall do for equation they're where focusing. that

ability our us in competitive the is it on. of so wider high and and and of of treated a advantage nitrogen are to COX, our massive what for context HXS levels blamed even therefore, customers ranges focusing And now take

John Mackay

Super. Thanks that. for

Operator

Neel line next comes the Mitra you. from with Thank of of question America. Bank The

is now open. line Your

Indraneel Mitra

out the been there's producer But and less to of assurance know trying than there. ethane flow there's getting to on gas I It that that's are my seems growth Hi. the desirable. of markets basin. cadence moving wondering just through of May. takeaway recovery but understand and was like been the April question. to just situation wanted gas going Jamie, been any Thanks strong, the if for issues gas maybe of kind I now, lot with right taking touch a the rich with

Jamie Welch

Yes. thank Good morning. And you. Neel,

mentioned we is and has another I really our think as anything, we've to cadence drilling maybe not up, typical. in both question, If the continue to oil-directed seen which at pick it prepared somewhat remarks all. changed answer an

customer where as banging we, I, gas, that again, back as of the got to far knows that some is climate will a can the year space happens in want I our almost got far time are everybody for as more I of you you're that's is can viewpoint that And space interesting you here, They Kindred's the to, his packages switchboard people have very take give us, we're concerned, got the Second weather. would customers quarter on activity PHP. literally we will what's say, saying, the But of very this we've gas have I, door for hand. and when fit calling, because activity. think say, turn-in-line down are through I is of see basically third can sort I customer-centric. can literally, to my of pockets -- we We you prime need as want guess, potential we out I look, it And challenging all number comes help. quarter focused, we've and and

with at customers their add role so And a partner the them would context achieve goals.Chris, look we our you helping our being as of ultimate in anything?

Chris Kendrick

I Jamie, think right. that's

us Neel, one alluded that having and Coast. Jamie the it have see unlike has of peers the and differentiator is Gulf don't curtailments egress I for maybe our allowed the takeaway, to access big to think earlier, this to that PHP some not provide us, space

grow tool it a to going to our been it's So great to use we're continue business. and have, help to

Indraneel Mitra

question. Got it. And then second

upstream those given New how the Now there, your you looks and your are system, the bigger or and in a able capital the in like and the that are at for have also solutions Apache terms leverage in that area. it M&A gathering on constraint an integrate other considering bolt-on float. And on maintaining path public work you've to downstream you're that PHP to would you customers? your a with a downstream like puts and ratios that Is looking something as and of How and exited the sense you have float now investment it you're Mexico Permian like into grade, public terms that position expanded get to still the and want you we maybe other been option? of the position increasing

Jamie Welch

we Neel, we look where to of as impact. leverage both value we opportunities complex. inorganic. at well, we high lens have relates the through we and look And ratings different at at the that look said bar a think accretion, and overall all We to opportunities, it short-cycle I value have look very lots accretion consistently of organic

side, very everything as evaluate. do And that But And will to into are with we continued opportunities strategy. what consideration. now we checks the believe completion forecasted what growth that that we So we've look, that quarter, the balance I we year. now, execution obviously year, the of there. seen for the all first last very find happen we've for look, take you've is as organic our program And that's far much on something we're when just think boxes, how and of got in the out we've with that's and focused what happy been capital the that's that's -- very the the

Indraneel Mitra

Perfect. Thank you.

Operator

This you. conclude to remarks. today's session like now any team for will the would for the call. Thank call final to over question-and-answer I the hand back

Jamie Welch

the so seeing in look forward it's morning. Thank Bye-bye. Thank you lots of XX look days. forward you a time next very much, of seeing year, We know and to I time to you. stuff, we you. this for conferences your everybody, busy

Operator

for call. This your concludes today's Thank conference participation. you

your You lines. may now disconnect

Kinetik (KNTK) 9 May 242024 Q1 Earnings call transcript