Kinetik Holdings Inc. (KNTK): M&A transaction — Kinetik closes ~$765M Durango acquisition in Delaware Basin; funds with GCX sale

Kinetik Holdings Inc.

Acquired Durango Permian LLC for ~$765M: $315M cash, 3.8M OpCo units now, 7.7M units due July 2025.
Cash portion funded by June 4 divestiture of 16% GCX pipeline stake.
Leverage ratio post-close at 3.4x; deal immediately deleveraging.
Kinetik will update 2024 guidance with Q2 2024 earnings.
Durango platform enhances Kinetik's Delaware Basin footprint; Kings Landing earnout up to $75M.

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.9

Kinetik Holdings Inc. completed an acquisition involving Durango Midstream LLC, an affiliate of Morgan Stanley Equity Partners for aggregate purchase price of approximately $765 million (closed 2024-06-24).

Action: acquisition
Counterparty: Durango Midstream LLC, an affiliate of Morgan Stanley Equity Partners
Consideration: aggregate purchase price of approximately $765 million
Closing: 2024-06-24

Exact text from the filing

pursuant to which the Partnership purchased all of the membership interests of Durango Permian, LLC from Durango Seller for an aggregate purchase price of approximately $765 million

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Kinetik Holdings Inc. filing history →

Source: SEC EDGAR

accession 0001193125-24-171159

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