KNTK - Earnings call transcript Q3 2024

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Operator

Good morning. Thank you for attending today's Kinetik Third Quarter 2024 Results Conference Call. My name is Makayia, and I'll be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions at the end. I would now like to pass the conference over to your host, Alex Durkee. proceed. may you Alex,

Alex Durkee

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

today Jamie Other the access speakers attendance we Trevor are senior Our issued are call team webcast for Howard, Officer; Chief management at slide The available Chief for and this Executive yesterday, morning's today's Financial press also the to Officer. are members call. our Welch, of www.kinetik.com. in President release and and presentation

measures that like actual prepared not would not these including GAAP. do to We open from I provide we may our begin, over involve listeners provide part conform and reconcile remarks, statements guarantees non-GAAP question-and-answer to performance our also all Jamie. provided statements, the what We've to we and will our With assumptions. measures performance certain results a After remarks, call U.S. will of release. section, these that, the are Before future statements. as These in the that of I remind number schedules Q&A. and differ turn of will is call forward-looking press described could to risks earnings that

Jamie Welch

call Thank Good today. Alex. joining Thank you, you for morning, everyone. our

terms so XX% adjusted We logged of third in Yesterday, quarter a EBITDA, a Kinetik's as increase let's results. which an year-over-year. single to have of get we lot company through, public We started. was get reported our best quarter

growth of volumes gas processed cubic per representing also billion year-over-year. We feet day, X.XX XX%

per the of the negative persisted gas price at Waha for you Hub gas quarter. $X the many are daily prices As with averaging negative aware, Mcf

partnered transactions of with account nearly approximately our EPIC of on wellhead volume long-term pipeline. impressive now growth agreement feet strengthen million in XX.X%. a long-term an of needed that committed when step XXX we to outperformance to pipeline capacity and with we on basis. even of much per the overall achieved first the Diamondback Energy day total you to was acquire take the ownership itself XX% interest additional due support curtailed financial to September, bringing more equity into the in Crude, the pricing. In a transport firm So Kinetik's of system series gas finalizing cubic Kinetik now EPIC. is also This the has a the profile continued Diamondback is

and X we our the benefit Maljamar our continue from interest With on fourth currently The approved to and and these decarbonizing acid step annual rating that agencies. significant injection This partners processing sequestering to to is the upgrade of a early actions, Draw capturing plan gas COX our distributions the XXXX. from positions EPIC in Dagger covers only Kinetik in significantly begin in received sustainability its from multi-notch footprint. its XXQ of Crude at Mexico. wells on economically New early which plan is system enables our mission state And the through approved EPIC the we Term expense the Loan to the a received plan Also refinanced B, approval EPA. beginning October, credit and reduced business MRV facilities This at are MRV September, credits.

economic which we to working beginning the benefit, fully XXXX. in We expect to recognize are quantify

in treating MVC Lea step-up our with and to agreement an amendment services facilitate the plans Mexico. quarter, customers. and been progressing of MRV We have to announced largest Kings New our Last Counties, and has X. also an the amended The Landing on commenced and started Diamond Lea processing Construction our we projects complexes. complete is existing build-out agreement County at our Eddy November Cryo in capital one

of focused of we're operations on the and track to second Landing highly remains quarter the Kings in team commence year. X, construction operations Our on Cryo next

on as curtailed day We well inventory. have significant DUC as northern system feet XXX cubic per our million

change processing So optimize that where high-pressure, processing space which higher-margin County, plant customers the and large the relocation announcing first gas sites. were leverage on up New to Mexico will north will service initially in we our for Texas. XXXX, and Durango region. North the represents contemplating between pipeline west Delaware X is This connect flexibility critical capacity of south, our and significant sour tremendous Culberson We're rich The today and provide of in announcement quarter move the gas processing freeing County, also a Kingsland volumes system system expected sweet the in-service in available we a scope diameter, a one with Eddy and is side for our Cryo in of our pipeline, to gas. treating of

the fully PDP and this financial. per cubic operations. quality Starting and better we million with on XX system, our with new The is existing the access commercial million day a of all day new feet pipeline development processing understand that contemplated will Delaware initially feet far relocation. across Now gas XXX originally pipeline capacity new cubic increase to specs the aspects, increase plant solution northern versus by North operations, per

the commercial sour capacity south more allows replace with volumes sweet but not solution lower-margin processing us those to side, Delaware On gas. and North, this higher-margin gas access only for move can we

the I'm strategic excited acquisition gathering we our our team supported side, in new connecting pipeline our Eddy the by for not increase shareholders with customers of company. earlier and has several and The objective significant was Durango On announcement. pipeline the North systems proud and that our that is When for announcing said processing announced Today's highly already this represent financial connector been underwritten CapEx. and South first exceptionally an does customers. this County the announcement and Today, of for our unlock year, step a project. value pipeline important new the new

to been the Landing decision purchase up our critical active customers of and commercialize Cryo with to very lead with components. X, Our long commercial processing has expansion and the current team following path also north build-out prospective Kings complex

gives by and producers' in enable well and raise we further us to Annualized us successive as the performance quality demonstrated actually to goal our Given at range. the confidence which $XXX the plan exceptional range our and develop economics, adjusted area. region, need EBITDA of have least our year, quarter outstanding objective. to Each reservoir that above soon $X in quarter end cost to we X Landing the Kings guidance again FID revised an for to EBITDA resource guidance now puts producers this adjusted with internal discipline, on expenditures the additional tighten processing this take capital possible supported third to EBITDA billion, capacity as to million achieve top

medium-term of XXXX year now our accomplished immediate our projects a on within I'm target so and is with incredibly once adjusted strong make our was year proud of a EBITDA this reach, this what EBITDA accretive what and reality. also far target marks to leverage billion. target, allocation a and capital So team of of framework strategic likely achievement pursuit growth execution $X our of has

underscored and $X.XX performance Board cash in the to QinetiQ's raise decision Directors' annualized outlook increased Our of the year-to-date basis. to on confidence quarterly an dividend

and repurchases. to ahead, and share flexibility well that balanced continued allocation of as growth shareholders approach returns annual growth through remain organic dividend inorganic capital Looking committed opportunistic as ratable a opportunities for provides acceleration both we to

discuss So detail. guidance results in Trevor now the the of and financial that, more I'd all like hand to call with revised to over to

Trevor Howard

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

quarter, million cash cash increasing we than $XXX For free threefold and flow flow the distributable million, generated of more was year-over-year. $XXX

year-over-year, in up $XXX our Looking XX% of as EBITDA in assets well adjusted at across segment results, of Texas segment Mexico Midstream million the New Logistics our a by as our largely from performance quarter, our full strong quarter generated an driven assets. contributions

Growth our our the EPIC marketing in margins volume stronger exceptionally PHP was in outperformance. Average plants, spring, contributing Oak growth This volumes process of feet curtailments Total Mexico quarter XX% adjusted our low well, maintenance and processing expansion driven Delaware capital several experienced substantial same quarter our feet capacity Texas the full time quarter, Shin and posted first from to in costs by PHP perform was wellhead Crude. bottom approximately were and per gas trains the despite to an while Shifting of margin flat up low operating increasing at seen EBITDA have million expenditures generated the due increase were contributions million, volume at Link were XX cryos expansion are year-over-year. in Pipeline increased ownership period. volumes by and Transportation cubic Delaware overhauls over gas per fuel billion day we segment, in Following line prices. our sequentially driven $XX and year-over-year our million. for natural the day the across volumes X.XX which New to cubic South system. we $XX Waha

$XX stands September, our the received an per expansion repayment we the X.Xx X.Xx. cash used leverage FID of project, following ratio GCX leverage Our Partners quarter. our credit million agreement below debt the of which affiliate at from on In target in towards ArcLight Capital we

range full As month, a guidance. EBITDA Jamie growth services year-over-year in at versus expect high increase guidance $X and anticipate XXXX XXXX approaches The gathering, expansion Logistics our the to and margin Eddy our revising County X% start-up step-up volume processed estimate million and that gathering we mentioned, County segment, services we year continue year-over-year $XXX our midpoint now range are gas processing December. in at adjusted to We in adjusted previous Lea upwards the we for EBITDA MVC growth teens. the Midstream treating of XX%. In the of the this and project billion, commenced

the third at from scheduled residue following and brief, at albeit a later in-service Additionally, quarter relief of curtailed the we Waha, maintenance this some of Matterhorn High following routine have we of Alpine Permian pricing seen pipelines. completion gas the the in expect quarter, volumes return

As hub. a at priced Houston reminder, Channel are residue gas the Ship volumes our equity

profit, the exposures. our gross approximately hedged for expected hedged are On XX% our calendar across side, XXXX, we have remaining and we hedging XX% XXXX on year

Crude. expansion Our Pipeline the year-over-year Epic PHP benefit Link increased the now segment from the ownership in in reflects Transportation Delaware and

guidance, range we Turning the million fine-tuned $XXX to million $XXX our to to our capital for full year. expenditures

of us discipline, gave which to our continued strong have the confidence range. record We the track tighten cost maintaining

the work well. projects Our and efforts systems. Kings associated integration we Landing year estimate with as continues Landing, and Culberson hit EBITDA the and focus including Kings impressed at injection X, by Mexico and maintenance reflect our our team's associated expansion on an Like pre-FID Eddy adjusted to Eddy Counties, construction Jamie, full CapEx pipeline, in for an gas growth I'm for of Texas needs growth strive Lea County The to billion existing acid and New new $X to execution the goal. capital dedication

quarter fourth maximizing on Kinetik in year has in issue to And year our continue I financial next like what guidance sharing open with We shareholder deliver our full the would store to to commitment to we Q&A. forward line earnings value. We for look when February. that, with XXXX for

Operator

instructions]. this now question time, begin weÃ¢â‚¬â„¢ll At session. the answer [Operator and

line The Neel first Bank of with question Mitra of from America. the is

Neel Mitra

you're components for G&P like sour the well we each should of a fees, treating and dedications to maybe those lot knock-on about as expiring think to add seems more adds when and think are to doing that It compete you're how that's How as effect, gas with of the systems? fee that getting would upcoming other about all if we COX then margin. producer some acreage sequestration off you the treating allowing

Jamie Welch

start. I'll will Chris jump its or Trevor Yes. in, Jamie. Neel, too. Kendrick I'm sure

second the Delaware and then material interactions our gross we had there's a difference between system May average about of the the the versus back on that and say, as obviously investors, both what I the with the I South, -- rates Delaware we've quarter, As announced think all average fee we period that the if see we when see before, North. the will, talked you Durango we've southern to the end all would with overall in in intervening transaction

and distinction So on pressure So through if all the pressure is through, it to not low way $X.XX, capture. make all and The far your with margin was the between almost side the you've that as high-pressure the typical around what deal, average the fixed said apples-to-apples, but distinction Durango right? got we $X, low way else as advertised a and recoveries $X.XX. processing whatever margins incremental

a the X then and and XX, way extreme the just as maybe go XX, -- of quality XX, have you stair parts a you all are give thousands XXX It's that gas increasing go most can into you you parts overall of inerts. hit structure. obviously maybe then you a low the will is the up and typical ramp of per up that rate step, sour Everything doesn't million, suite ppm, you spec So very sense.

sour -- stair-step more incremental the which you're distinction. and gives it's both services So a provides you That a of wells, using it's of X. gas side, have that sense on incremental But a the us. obviously acid your sort approach. provide Hopefully, injection whether OpEx, lot margin but you that's obviously gas for we

Neel Mitra

Perfect.

what would But And of we of be get lot made From order so, in are extend a or on need Epic. It spot first, want contracts. question, them still you've to what do on were to my if for through season progress of to to you would open expansion? your the Second to of steps? you some see we rates with seems were probably it those some of you understanding, timing maybe short-term contracts. like, partners an those if some

Jamie Welch

Epic up team. partners with topic expansion, the the a both time, So the I it's all with as as the on comes management think that far and

right, of there are are contract and shorter X/X new going our obviously medium portfolio series to term with from of be ourselves will fairly today. large dramatically amount almost of long-dated, gathering take very a changes, contract both very pipeline, of transport there a term some that which right, for sells. term, or the the That obviously a the Diamondback, -- capacity pipe very long contracts crude -- on some some for advantageous are You're some is buy space customers. the We modest

many, longer-term available so the to Corpus now, there. trappis, the they're and do is amount manifest gunvores, in the typically They so. want the think to Mcuriers, always be you Phase will an and can ideal which will that of size market, are actually So the success the see decision the domain finishing ideally obviously Even as with of the think itself will therefore, and now, the export diff available board contracts again, access, right particularly situated dredging commercial marketers, firm the the what for overall obviously, more Corpus shorter-term actually access get reasons I with, sells it buy-sells replace and et buy different we is many of to we X in. Christi and load relates be can unload vessels because MEH of drafts expand medium the what it They I always are which the cetera. to to requires of of will there

think question So and positioned if Permian positioned, other the expand, pipes side. of to the of best think, is on I it's a the very do the not question a the relative of crude I because on expansion. It's it's out pipeline only when this clear the that think remaining pipeline I to

Operator

Blum is Michael question next line The with Wells of from Fargo. the

Jamie Welch

the of look, break interesting So I'll really it's sort into a down it following. question.

compressor increase the as year. In that so our we current that about was really it from package, it's top were an If you else. well for large of the changing end, basically find did the you Mulsive and beds, drying Amazon when -- It's anything like to silica almost recall agent. actually lot XXXX, maintenance year in back are both like we whether when very or which any for talked as spending part, results you first get XXXX overhauls this our we guidance beads out it's absorption those related we call initiated for year-end that a for capital

those Matt So out think, we of changed I diamond context, on. walls in the

the that has recoveries, the that therefore, the a drops operate contributor. I result outperformance in first or change-outs I our had fixed bed to Yes. and have with the portfolio a it recoveries contract done multi system say And performance in meaningful an day has was the think given business exceptional of And bottom that been as outperformance in exceptional. line. with, a X of really just The gone operations is I guys -- say, complexes just on since would dealing rejection can the whether those a a the size you're that recovery. We the Bcf job. you're was time And a service. overall trains across multer

first We have In incremental took on is up spreads. first our this, service that production, very in because get would of filled to always that of the our We because need open that that we customers open for the call year obviously, the we expansion increase had space. option first large part, PHP. for time, large as obviously over space and said on space We our part benefited provide customers. this space

lose of sight don't However, this.

own ours Anne a goes run that have and natural and and full basis. we the We Waha being PHP the look they Ross, creates in a times that Trevor when We and Anne because on we and Evans to the a space at we commercial will then optimize change NGL Kris between and and all this and plants day. recovery PHP and between space. this If always Kindrick stream. space, We on all Matt ethane look do Kris into really, in this basically the is is look Tyler negative, you really predictive look because space, incremental Kindrick gas current our what stream from Chris basis. day team, We multiple

looking operations. are in it, always working conjunction to We optimize with

there. be of be suggest will the At day, the that, I business, at think onetime oh, size it the And times others, end certain portfolio our overall of given So to optimization. of don't may create versus not this it's part that pronounced some the this will continue. It of as sort we'll just correct maybe is benefit. always that's and but

your an think performance. I exceptional do OpEx X was that certainly So they of contributors. are

-- and Durango, on benefit well, there the quarter multitude. recovery I in at, Then of mean we side, that you where X the context also say, Kendrick probably Shin fuel almost negative burst, of had and When from prices take is literally, is it don't of PHP, then standpoint, can it's it's so I Waha, running everyone helped not would pipeline that the is above from in this, standpoint, going a you obviously think obviously, I transportation running is it the of it so obviously because have running to just literally, running we figuratively, had literally Oak capacity. Chris context in tell Waha. fuel but full. a just full, at completely

your cost, you your when incredibly about Waha plus is So if fuel lower. the to is think negative, rate pipeline fuel

great have back you So increase the we in crude. outperformance, then end, at the and obviously, our had EPIC

I a multitude where this but So business look can we better can -- one, so system just it's there not having is want say compensating of risk factors. see present that the factors benefit themselves. are a of diversified conditions optimize we as things to It's really our many

Michael Blum

giving not trajectory you're to the know and the is 'XX I maybe some guidance building that next you there? but to of get CapEx of today, going could like look Maybe Perfect. just blocks to for speak What maybe year?

Jamie Welch

think So I talked I other to analysts you and talked we've as to Michael, think, investors. and

percent. EBITDA, sweat, year-on-year consistently, a growth XX% how think our look, have that long is, done. that's is Kings 'XX $XXX We've annual be you'd right? he's it, going range. That that So $XXX about case 'XX, to path a we've lead XX%, of Trevor end sort into rate We range, very I midpoint, Landing think And this that's and XX-plus almost be about we've said, said as million a a well the should from the is increase. work, said and And and range. items the I 'XX look, next million, to you're we're of depending the about timing if between Kingslanding a an X, pre-FID you compound good about may business on critical that think on think viewpoint the to think me, without, said, upon it as look, year, this tell you think would also on we upper -- that as That's be the breaking overall runner.

So he doesn't that sweat much.

do that really a tremendous think from context of the business really, growth out. is designed here a So for inflection it's it's I really in on

So continue and the on growth, focused cost have very you've capital think top we got the to I line side. that discipline

Operator

Goldman The next comes from with question Koletas Sachs. Jacqueline

Jacqueline Koletas

I First, to connector. want just pipeline the on start

Mcf or further that there impacted to conversations beyond connectivity a to announced? there has buy pipeline the future connections build is And here potentially how and systems? So optionality North from expand And beyond Delaware that from South day you that here? XXX other connect commercial connector, the are can

Jamie Welch

got Okay. lot. get going your Don't lot just in there seconds. price. gone -- you've there's through a you a you a There's XX because keep the lot on in Jackie, that

top. So start at the let me

job, in County, that Sierra excess site On grow, the can the to ops, on I between with deal. south Grande that know County. Eddy the we draining do plan compression I why connector super between It's XXX have million with we side, of overall may is that think or We've you to connect the phenomenal system. boost feet that asked, to been and a a the out the idle basically up say, that engineering, team greater I than that of have can increase we cubic million do the don't surprised a really drawing can that's people. XXX move day a and about And this? XXX same. question the additional that XX-day the to construction cost at to which get come But desire rather got did creating Eddy here going big cryo, Durango, than said, north talking to this that

actually the it You've your the County project. already creates connectivity. for it's budgeted it, in numbers in Eddy already And

development of that with we talk say, we so they've capital only take Bingo, plans these volumes, long, we these in and north, -- of but got newborns when obviously massively right? investment, on not no other been they're go have. flexibility That's sour can that capital context we've all No midstream them customers but starved now egress, the their because guys array side, incremental not in so to And and egress. the sunshine there's for some for really the

down feel game big a It's changer proposition, the game company. for which of customers, and for massive It's is So knocked like what I we first does. the it This West, on this changer was our this really puts position massive the a connect analyze this as us pillars, a connecting it? much in Lea emphasize, connections? on are commercial How we about we to said now the opportunities. gas, know, do of we would sour more new okay, think We the where side, County on the done. basis

keeping basically, that at ultimately side. -- continuing in to the will us commercial are connecting work we're So Lea finalize we County opportunities hard result on

on system. your future. would then us have the for will will and unique. the going it I East, I that So that think will peers. our It optimization you in think, provide And us, be be will really amongst so will And much forward tremendously unique flexibility be super really that position

Chris Kendrick

is Jacqie, Kris. this And

fill pretty we didn't to other think thing Kings up we on I hit is quickly. one expect Landing

So to that make because an for can the to on gas we continue going this quickly. grow. X where as wanted And they is pipeline over sure growth second, area answer significant we goes had through This we're an to see years. customers get outlet it next our we

traverse. where pipeline additional there's commercial this will think upside we So

it strategically, and lot to provide excited a Kinetik, So for so connect to systems. sense we're this of makes the outlet

Jamie Welch

sour. say, and the I mix to sweet what is look as fair a Durango team, into at of And and goes it Chris be would

have both. You

have you sour context the it And of Teague right gas elements. really whether this them build And And years don't the treat process right infrastructure. can it's complicated. basically separate done. This can you that the you've here done talking get which but Pinon, you case and to is sour not probably you what the about So and and is have the it treating up combined multiple that to more a permit was to free anybody heard and in takes much go opportunity obviously gas Jim if gives you time. processing, infrastructure,

here. and it's to the which could the processing it complicated, So the down tremendous when we up bring County in really separate sour in of context leave that margin suite what of I the provide, we is, we "Hey, company. is looked all Eddy higher Culberson more it treating at business value the said, there's a we and more services gas we sweet proposition into Durango as for through system, look, a have said, bunch that our If south,

Jacqueline Koletas

recover? Waha those Alpine return softness. swings, do how the on to expect What the for I for you appreciate on open on the and And bit, your of And then an benefit and you're continued color it is commodity High before mentioned 'XX. volumes? to able quarter those the price And pivoting pricing your the fourth capacity in just there. environment a into view benefits 'XX? little about is you quickly year a hedging commodity expectations little what some timing bit talked But amendment again some PHP on

Jamie Welch

Okay.

referenced quarter you 'XX. fourth So

I think to confirm you meant fourth quarter just 'XX,

Jacqueline Koletas

Yes, 'XX. sorry, quarter fourth

Jamie Welch

prognostication -- to as Yes. to as might check being That's what We year from it be a no problem. giving a opposed wanted now. just you out to

cash positive, is again, to for $X.XX. short back negative enough, December Waha welcome the the the to same it's bring Hey, than same today volumes Alpine Positive, third enough $X.XX is quarter Interestingly on. High more old. is answer $X.XX. So right old, That's now,

call or There's whatever the of that's enough. Alpine is the or PDP, right? to Alpine, Apache more a X.X This I'm development High context but is, new couple this in listen than can all the no point. of it at hours sure in You hours

So is I our viewpoint the think basin is tight.

and X curves, lower decline maintenance tell XX to this prices. increasing is? seeing, PHP that like XX, So is gas full, I'm on needs going Bcf through let's that through Waha what Kindrick. What frame We're does we're audience the looking negative overall about have egress. Matterhorn GORs tight how means. we some this tight The a at basin day, the

And is Yes, got so you've Waha I think Blackcomb. going remain to challenged.

the with Run. line You've GCX the expansion. transfer team the get finish Warrior got over Maybe

see running we just the in to growth of The integrated gas you on form hub All weaker as environment a much the side. a players needed ethane evacuate is course, going price is the are net because this the as NGL of given on to beneficiaries, basis of NGLs. and be that recovery the trying can continued in everyone in full their gas

So in see look, be return it guidance, our we you'd the would I is, we look, volumes. our December, viewpoint -- of to Alpine think High said, start updated the

dip. Annie our hub. looking at It's is I some prices pricing. see relative and will think $X.XX. not. to I gas we'll ship think viewpoint bounce like It's Waha around. positive I'm pretty It's a big that crazy, $X.XX, do still

So optimization made. the team this be the as day money like right And every of come plenty I what the we guys does, optimize with the to formula. said, that's ops standpoint with working there's to up from business

I continue think is, just we're we're to trajectory. to going look, our viewpoint just going So this

pretty bound, the I WTI remain a for for day think office I managed, they $XX is continue a good them. cost environment the still can of to a efficiencies good look as keep reductions at they in universally range is our to that say, the all at much $XX. almost crude Look is for, controlled LOE is think, producers. I going D&C day and overall as price, get at their in the $XX If drive, far that costs. would down

'XX what's particularly out as look So right for by but beyond. now we it 'XX, going and and as not just us around relates feel into to pretty up we jazzed on

Jacqueline Koletas

Great, for it. thatÃ¢â‚¬â„¢s Appreciate it me.

Operator

is The with Wolfe Sanisviero Burke next the Research. of question line from

Burke Sansiviero

Durango New you about potential have and setback any Just potential assets? considered in on sort firstly, rules you're the of for Mexico how impacts the impressions thinking being

Jamie Welch

this I am because there. there question misinformation so much asked so is out you glad

the like many of undertaking economic I all. New at this all impact believed potential state's Finance That's article, that to setbacks study, Legislative not Mexico study, revenue. on Committee saw would proposed This an state So was look, some much legislation. the sure think cost the an of and the this everyone about the regarding economic it I have impact that I'm is Reuters you,

a Look, our why. represents of view you've income state discussions real largest cost single record So overall let's here as on coffers budget, as is publicly on than in of unlike time and The incomes there for study oil and true that more workers. gas setbacks. different Mexico. second. everyone's where median states XX%. of average workers the frame significant first to addressed sector says that for is gas here's and are setbacks, is, The New employer other here, there gas a in state the far seen it's Oil LSC multitude the factors for the that legitimate is state Xx and the a percentage is potential Oil

can have New a Mexico, of in states, other something the citizens can you across modifying unlike number then and -- line constitution. state where context get get signatures basically in of the

Mexico. not do all New have at You in process legislative that

citizens is not virtually that is and and even setback support White state's bill, the House legislation. as they exist administration clear Democratic the to And governor not There effective I any have So changing it Mexico. now, with the the change a all no now where in does mechanism path constitution eventuated. we've groups in all said, study. in had New January, a to right it if of gather particularly conversations signatures will these is that the leadership It

regulators have impact to framework it's as and to a overall is and their that a any the all really context study, state viewpoint, first finances. how politicians Resources, large that the misinformation. our time of has news, I the fake lot but so and type producers positioned. budgets is think overall a could it's this see, of the in on is other Permian Oxy, it EOG, it gas along and say it's and oil and potential But shocked Conoco could their -- And just of got we people with such of

look, So But answers that I to last week I the hopefully, listened He think, Caterra. Burke, question. job. Jordan did great a at Tom

is I this like think a feel we story. not

Burke Sansiviero

that. for Thanks

a inflection Just understanding dividend the for to the further higher year? a should point about how for my CapEx be is company, marks XXXX growth think given shaping that we follow-up, positive out dividend

Jamie Welch

our is annual growth. the remarks, be I think ratable Look, our prepared balanced, capital said as will viewpoint allocation we that, dividend in

on quarter to earlier in of third to right, he Do context going So have that ratable, We're his on to time ratable, you growth annual man think budget. towards EBITDA grow we're larger great you're than going it you basis. about this in the continue November. think was Trevor think He I means have year, shouldn't this and the the it a a we of next But capital of is words. what will about say says, do side. that annual methodical when its thoughtful, we it a

Operator

of question from Tonet is line JPMorgan. Jeremy the with The next

Jeremy Tonet

for on Methti Bob is Jeremy. This

might just heard I First curtailed of but as I clarifying I had have a to one, million per or feet was it returned curtailed day XQ. I in volumes And whether I think those cubic have not. clarify question. now, XXX XXX believe wanted just

Jamie Welch

be feet transaction, think a XXX on we where started. about it's you X said, We we hearing the Kings per We XXX had said inventory. listen, It's to were first as quickly curtailed needs we still a can. as were I the day service there. day we growing announced DUC in reason there. cubic of We feet still had It's and cubic talking Durango. Landing million it that No, on what That's that. when the in million context

Trevor Howard

It We not price-related not North. shut-ins, price is aren't Those Yes. shut-ins. curtailments. They're Delaware at as necessarily associated them processing of the to lack related. with capacity refer

Jamie Welch

mean because Yes, on I run we Durango. right? full every it's day full,

Trevor Howard

just gross predominantly highlight, the a to And generally to Whereas that we price-related Delaware in is XXX is South. million to -- number. and curtailments that refers wellhead in referred that Delaware

that a So our by is one other number bit it's a reported different customers. than of

Jeremy Tonet

on wanted to updated guys the have see And gears, I industry role landscape. given that thoughts against consolidation, this some you Perfect. then Kinetiks' of just switching

Jamie Welch

that we're the with fishes around, not swim and big. We largest

It's We for it's in So space. that look, in to consolidation to in realize destiny to that overall going -- And ours is going it's is we space. the our upstream not future all know going think midstream necessarily I control. continue continue. to the continue

Jeremy Tonet

Understood. Thank you.

Operator

additional to waiting like time. this team I'd further registered. any currently at no are management for instructions]. our over [Operator to There no questions remarks. are questions There pass the back conference

Jamie Welch

with know that our and and look morning. various you to dates shortly it. busy everyone, for conferences up the it's Thank go all. with various a see Thanks, we We'll reporting, tour Bye-bye. I the so coming time are everyone Thanks. continue you to time discussions. forward your this year-end, to appreciate I

Operator

We lines. you Thank participation. you all. your call. a concludes today's appreciate We day, your and now That conference may hope have you wonderful all disconnect

Kinetik (KNTK) 7 Nov 242024 Q3 Earnings call transcript