Kinetik Holdings Inc. operates as an integrated midstream energy company in the Permian Basin providing comprehensive gathering, transportation, compression, processing and treating services.
The company’s core capabilities include a variety of service offerings, including natural gas gathering, transportation, compression, treating and processing; Natural gas liquids (NGLs) stabilization and transportation; produced water gathering and disposal; and crude oil gathering, stabilization, storage...
Kinetik Holdings Inc. operates as an integrated midstream energy company in the Permian Basin providing comprehensive gathering, transportation, compression, processing and treating services.
The company’s core capabilities include a variety of service offerings, including natural gas gathering, transportation, compression, treating and processing; Natural gas liquids (NGLs) stabilization and transportation; produced water gathering and disposal; and crude oil gathering, stabilization, storage and transportation. The company has approximately 2.2 Bcf/d cryogenic natural gas processing capacity strategically located across Texas and New Mexico. Such capacity will increase to 2.4 Bcf/d once the Kings Landing Project is completed in mid-2025. As measured by processing capacity, the company is the fourth largest natural gas processor in the Delaware Basin and fourth largest across the entire Permian Basin. In addition, the company has equity interests in three long-term contracted pipelines transporting natural gas, NGLs, and crude oil from the Permian Basin to the U.S. Gulf Coast.
On December 10, 2024, the company announced it has entered into a definitive agreement with Permian Resources Corporation (‘Permian Resources’) to acquire certain natural gas and crude oil gathering systems assets, primarily located in Reeves County, Texas (‘Permian Resources Midstream Acquisition’). The Permian Resources Midstream Acquisition provides a multi-stream opportunity for natural gas gathering, compression and processing, as well as crude gathering services for the company. The transaction closed in early January 2025 following satisfaction of customary closing conditions.
During the third quarter 2024, the company consummated the Equity Sale and Purchase Agreement with Dos Rios Crude Intermediate LLC to purchase a 12.5% equity interest in EPIC. After completion of the transaction, the company owned a 27.5% equity interest in EPIC. EPIC has over 800 miles of pipeline connecting the Delaware and Midland Basins to the U.S. Gulf Coast and has a capacity of 625 MBbl/d. The company’s original 15% investment in EPIC had no assigned value through the acquisition of Altus Midstream Company during 2022, so the company resumed accounting for the EPIC investment using the equity method of accounting upon the closing of the additional 12.5% interest.
On June 24, 2024, the company completed the acquisition of all of the membership interests of Durango Permian LLC and its wholly owned subsidiaries. The Durango Acquisition significantly expands the company’s footprint into New Mexico and the Northern Delaware Basin, expanding its processing capacity by over 200 MMcf/d and doubling the company’s existing gathering pipeline mileage. An additional 200 MMcf/d of processing capacity will be added upon completion of the Kings Landing Project.
On June 4, 2024, the company sold its 16% equity interest in GCX (Gulf Coast Express Pipeline) pursuant to the GCX Purchase Agreement.
Segments
The company operates through Midstream Logistics and Pipeline Transportation segments.
Midstream Logistics segment
The Midstream Logistics segment provides three service offerings: 1) gas gathering and processing; 2) crude oil gathering, stabilization and storage services; and 3) water gathering and disposal.
Gas Gathering and Processing
The Midstream Logistics segment provides gas gathering and processing services with over 3,900 miles of low and high-pressure steel pipeline located throughout the Delaware Basin, including over 2,300 miles of gas pipeline acquired through the Durango Acquisition. An additional 214 miles of gathering pipeline was added to the company’s system through the Permian Resources Midstream Acquisition closed during January 2025. Gas processing assets are centralized at seven processing complexes with total cryogenic processing capacity of approximately 2.2 Bcf/d: Diamond Cryogenic complex (720 MMcf/d), the Pecos Bend complex (540 MMcf/d), the East Toyah complex (460 MMcf/d), the Pecos complex (260 MMcf/d), Maljamar (150 MMcf/d), Dagger Draw (75 MMcf/d) and the Sierra Grande complex (60 MMcf/d). Residue gas outlets are the El Paso Natural Gas Pipeline, Energy Transfer Comanche Trail Pipeline and Transwestern Pipeline, ONEOK Roadrunner Pipeline, Whitewater Aqua Blanca Pipeline, Permian Highway Pipeline LLC (‘PHP’), New Mexico Gas Company and the company’s wholly owned and operated Delaware Link Pipeline. NGL outlets are Energy Transfer’s Lone Star NGL Pipeline, Targa’s Grand Prix NGL Pipeline and Enterprise’s Shin Oak NGL Pipeline (‘Shin Oak’), which are accessed through Kinetik NGL, the company’s wholly owned and operated intrabasin NGL pipelines.
Crude Oil Gathering, Stabilization, and Storage Services
The Midstream Logistics segment provides crude oil gathering, stabilization and storage services throughout the Texas Delaware Basin. Crude gathering assets are centralized at the Caprock Stampede Terminal and the Pinnacle Sierra Grande Terminal. The system includes approximately 220 miles of gathering pipeline and 90,000 barrels of crude storage. The crude facilities have connections for takeaway transportation into Plains’s Central 285, North 285 and Wolfbone Ranch, and Plains Oryx’s Orla & Central Mentone and Energy Transfer’s Judith facilities. An additional 75 miles of gathering pipeline was added to the company’s crude gathering assets through the Permian Resources Midstream Acquisition closed during January 2025.
Water Gathering and Disposal
In addition, the Midstream Logistics segment provides water gathering and disposal services through assets located in northern Reeves County, Texas. The system includes over 360 miles of gathering pipeline and approximately 580,000 barrels per day of permitted disposal capacity.
Pipeline Transportation segment
As of December 31, 2024, the Pipeline Transportation segment consisted of three equity method investment (‘EMI’) pipelines originating in the Permian Basin with various access points to the U.S. Gulf Coast, and the company’s wholly owned and operated pipelines, Kinetik NGL and Delaware Link Pipelines. The pipelines transport crude oil, natural gas and NGLs within the Permian Basin and to the U.S. Gulf Coast.
Permian Highway Pipeline
The company owns an approximately 55.5% equity interest in PHP, which is also owned and operated by Kinder Morgan Texas Pipeline, LLC (‘Kinder Morgan’). PHP transports natural gas from the Waha area in northern Pecos County, Texas to the Katy, Texas area with connections to the U.S. Gulf Coast and Mexico markets. PHP was placed in service in January 2021, with the total capacity of 2.1 Bcf/d fully subscribed under long-term contracts. In December 2023, PHP’s expansion project was put into service and its total capacity was increased to 2.65 Bcf/d.
Breviloba, LLC
The company owns a 33.0% equity interest in Shin Oak, which is owned by Breviloba, LLC (‘Breviloba’), and operated by Enterprise Products Operating LLC. Shin Oak transports NGLs from the Permian Basin to Mont Belvieu, Texas. Shin Oak was placed in service during 2019, with total capacity of over 600 MBbl/d.
EPIC Crude Oil Pipeline
The company owns a 27.5% equity interest in EPIC, which is operated by EPIC Consolidated Operations, LLC. EPIC transports crude oil from Orla, Texas in Northern Reeves County to the Port of Corpus Christi, Texas. EPIC has over 800 miles of pipeline connecting the Delaware and Midland basins and has a capacity of 625 MBbl/d.
Kinetik NGL Pipelines
The Kinetik NGL Pipelines consist of approximately 96 miles of NGL pipelines connecting the company’s East Toyah and Pecos complexes to Waha, including its 20-inch Dewpoint pipeline that spans 40 miles, and the company’s 30 mile, 20-inch Brandywine Pipeline connecting to its Diamond Cryogenic complex. The Kinetik NGL pipeline system has a capacity that approximate 580 MBbl/d.
Delaware Link Pipeline
The Delaware Link Pipeline consists of approximately 40 miles of 30-inch diameter pipeline with a capacity of approximately 1.0 Bcf/d that provides additional transportation capacity to Waha. The project reached commercial in-service in October 2023.
Regulation
To the extent that the company’s intrastate natural gas transportation systems transport natural gas in interstate commerce, the rates, terms and conditions of such services are subject to FERC jurisdiction under Section 311 of the Natural Gas Policy Act of 1978 (‘NGPA’). The terms and conditions of service set forth in the company’s statement of operating conditions for transportation service under Section 311 of the NGPA are also subject to the Federal Energy Regulatory Commission (FERC) review and approval.
The company’s Intrastate natural gas operations are also subject to regulation by various agencies in Texas, principally the Railroad Commission of Texas (‘TRRC’). The company’s intrastate pipeline operations are also subject to the Texas Utilities Code and the Texas Natural Resources Code, as implemented by the TRRC.
The company’s natural gas gathering facilities in Texas are subject to regulation by the TRRC under the Texas Utilities Code and the Texas Natural Resources Code in the same manner as described above for intrastate pipeline transportation facilities.
Transmission services rendered by the company is subject to the regulation of the TRRC.
The company’s pipelines are subject to regulation by the U.S. Department of Transportation’s (‘DOT’) Pipeline and Hazardous Materials Safety Administration (‘PHMSA’) pursuant to the Natural Gas Pipeline Safety Act of 1968 (‘NGPSA’), with respect to natural gas, and the Hazardous Liquids Pipeline Safety Act of 1979 (‘HLPSA’), with respect to NGLs.
The company complies with the requirements of the Occupational Safety and Health Administration (‘OSHA’) and comparable state laws that regulate the protection of the health and safety of workers. Its operations are in substantial compliance with OSHA requirements, including general industry standards, hazard communication, record keeping requirements, and monitoring of occupational exposure to regulated substances.
History
Kinetik Holdings Inc. was founded in 2017.