Kinetik

Kinetik Holdings Inc. (NYSE: KNTK) is a midstream operator working the Delaware Basin side of the Permian, providing the gathering, compression, processing, transportation and water management services that move natural gas, natural gas liquids and crude oil to market. The company was formed in 2012 and took its current shape in February 2022, when EagleClaw Midstream and Altus Midstream combined in an all-stock merger. It describes itself as a pure play Permian midstream company and reports serving approximately 90 producer customers.

Midstream services

Service lines cover four product streams plus downstream transmission:

• Natural gas gathering, compression and processing
• Natural gas liquids handling
• Crude oil gathering and storage
• Produced water gathering and injection
• Long-haul transmission to Gulf Coast markets

The Delaware Basin gathering and processing system connects to newly constructed downstream long haul pipelines that carry hydrocarbons from the Permian Basin to demand centers along the Gulf Coast. Those pipeline assets are operated by partner companies rather than by Kinetik directly.

System capacity

The processing figure reflects the Durango acquisition and the in-service date of Kings Landing Cryo I, after which the company states it is one of the largest natural gas processors in the Delaware Basin. Named facilities include the East Toyah plant, the Diamond Cryo facility, West Mustang and Sool Station, which runs electric compressors.

New Energy Ventures

Under a program it calls New Energy Ventures, Kinetik reached an agreement in April 2024 to supply carbon dioxide captured from one of its amine gas processing facilities in West Texas to eFuels producer Infinium. The CO2 serves as feedstock for Project Roadrunner, which will primarily produce sustainable aviation fuel for US and international markets.

Memberships and recognition

The company holds national memberships in:

• American Petroleum Institute
• Energy Infrastructure Council
• The Environmental Partnership
• GPA Midstream Association
• Oilfield Water Stewardship Council

Kinetik received the GPA Midstream Association 2023 Safety Award and a GPA Midstream Perfect Record Award for recording no lost time incidents in 2021. The Houston Business Journal named it one of the fastest growing middle market companies in May 2022. The company notes that every member of its team is an employee rather than a contractor.