Kinetik Holdings Inc. reported significant financial performance improvements for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Total revenues for the third quarter increased by 20% to $396.4 million, up from $330.3 million, while revenues for the nine-month period rose by 21% to $1,097.2 million from $907.5 million. This growth was primarily driven by a 31% increase in product revenue, which reached $290.4 million, attributed to higher natural gas residue volumes sold and improved commodity prices.

Operating income for the third quarter surged by 90% to $72.9 million, and net income including noncontrolling interest rose 94% to $83.7 million. For the nine months, net income increased by 91% to $228.0 million. The company’s Adjusted EBITDA also saw substantial growth, with a 23% increase in the third quarter to $265.7 million and a 20% increase for the nine months to $733.6 million.

Kinetik's operational costs reflected the impact of the Durango Acquisition, completed on June 24, 2024, which contributed to increased operating expenses and depreciation. Operating expenses for the third quarter rose by 30% to $55.8 million, while general and administrative expenses increased by 30% to $29.6 million, driven by share-based compensation and integration costs. Depreciation and amortization expenses also rose by 25% to $87.6 million, with $12.8 million attributed to the Durango acquisition.

The company’s balance sheet showed a notable increase in total assets, which rose to $6.86 billion from $6.50 billion at the end of 2023. Cash and cash equivalents improved significantly to $20.4 million from $4.5 million. However, the accumulated deficit expanded to $(1.72 billion) from $(723.5 million), reflecting the impact of the recent acquisitions and operational costs.

Kinetik's strategic developments included the acquisition of Durango Permian, LLC, which expanded its processing capacity and pipeline mileage. The company also divested its 16% equity interest in GCX for $524.4 million, recognizing a gain of $89.8 million. The company continues to face challenges from commodity price volatility and rising interest rates, which could impact future financial performance.

Overall, Kinetik Holdings Inc. demonstrated robust growth in revenue and profitability, supported by strategic acquisitions and operational efficiencies, while managing increased costs associated with its expansion efforts.