Kinetik Gets Electric in 2Q
To maybe no one’s surprise the nation’s largest midstream companies are enjoying one heckuva year now at midpoint. This, sealed with a kiss by Dallas-based Energy Transfer, which recently announced a staggering 44% increase in profit during 2Q. All in all, the Big Five of oil and gas infrastructure, to also include Enterprise Products, Williams, ONEOK, and Kinder Morgan, are reaping sweet benefits of record volumes and growing exports by way of new builds, expansions, and acquisitions to keep the party going. But for Permian producers, the Big Five aren’t the only game in town that’s growing and thriving.
Reese Energy Consulting today spotlights Midland, Texas-based Kinetik Midstream, a Permian pure-player that in short order has become the Delaware’s largest independent gatherer and processor. The company’s $765 million acquisition in May of Durango Midstream, which expanded Kinetik’s Delaware “super system” into N.M., has already proved a superstar in 2Q. The company reported net income of $108.9 million vs 71.7 million the same time last year, processing 1.58 BCFD, and revising its guidance upward. According to CEO Jamie Welch, “A year ago, we had zero operations in the New Mexico Delaware Basin, and today, nearly 20% of our volumes are sourced from New Mexico.”
Kinetik operates 4,700 miles of pipe across Texas and N.M., six gas plants, King’s Landing under construction, and a pre-FID on King’s Landing II. To that we say fabulous job, Kinetik, proving you don’t have to be a behemoth to become a neighborhood giant