Kinetik Holdings Inc. (KNTK): M&A transaction — Kinetik sells 16% GCX stake for $540M; funds Durango Permian acquisition and NM expansion

Kinetik Holdings Inc.

Total consideration $540M: $510M cash upfront (net proceeds $494.4M) + $30M earnout on capacity expansion FID.
Cash used to fund previously announced acquisition of Durango Permian LLC and capital for 15-year gas gathering agreement in Eddy County, NM.
Pro forma eliminates equity income from GCX: $9.0M for Q1 2024 and $37.5M for FY2023.
Pro forma net income to Class A shareholders: $5.6M (Q1 2024) vs historical $11.6M; $288.9M (FY2023) vs $289.4M.
Deal closed June 4, 2024 with GCX Pipeline, LLC, an affiliate of ArcLight Capital Partners.

item 2.01 item 9.01 item 7.01

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 a disposition involving GCX Pipeline, LLC for $540 million (closed 2024-06-04).

Action: disposition
Counterparty: GCX Pipeline, LLC
Consideration: $540 million
Closing: 2024-06-04

Exact text from the filing

Holdings LP, pursuant to which the Company agreed to sell its 16% membership interest in Gulf Coast Express Pipeline LLC (“GCX”) to the GCX Buyer for a total purchase price of $540 million (the “GCX Sale”), consisting of $510 million of cash, less certain customary closing adjustments, payable on June 4, 2024 and an additional $30 million earn out in cash upon

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Kinetik Holdings Inc. filing history →

Source: SEC EDGAR

accession 0001692787-24-000036

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