Kinetik Holdings Inc. (NYSE: KNTK) has recently completed the acquisition of Durango Permian LLC, marking a significant move in expanding its presence in the northern Delaware basin. The acquisition was funded with cash proceeds from the divestiture of its 16% equity interest in the Gulf Coast Express Pipeline (GCX), finalized on June 4, 2024.
The company's leverage ratio stands at 3.4 times following the closing of the acquisition, demonstrating an immediate deleveraging effect resulting from the GCX divestiture and Durango acquisition. Kinetik plans to update its 2024 guidance with the release of its second quarter 2024 financial results.
Kinetik Holdings Inc. is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation operating in the Delaware basin, offering comprehensive gathering, transportation, compression, processing, and treating services for natural gas, natural gas liquids, crude oil, and water.
As a result of these recent developments, Kinetik has significantly enhanced its overall Delaware basin wide footprint, positioning itself for potential growth and opportunities in the region. The market has reacted to these announcements by moving the company's shares -0.1% to a price of $41.15. For the full picture, make sure to review Kinetik's 8-K report.
