Kinetik Holdings Completes Turquoise Energy Acquisition
Ticker: KNTK · Form: 8-K · Filed: Jun 28, 2024 · CIK: 1692787
| Field | Detail |
|---|---|
| Company | Kinetik Holdings INC. (KNTK) |
| Form Type | 8-K |
| Filed Date | Jun 28, 2024 |
| Risk Level | medium |
| Pages | 5 |
| Reading Time | 6 min |
| Key Dollar Amounts | $0.0001, $765 million, $315 million, $75 million, $100 m |
| Sentiment | neutral |
Sentiment: neutral
Topics: acquisition, financing, asset-acquisition
TL;DR
Kinetik just bought Turquoise Energy LLC for ~100M shares, closing June 24th. New credit line too.
AI Summary
On June 24, 2024, Kinetik Holdings Inc. announced the completion of its acquisition of certain assets from Turquoise Energy LLC. This transaction involved the acquisition of all outstanding equity interests of Turquoise Energy LLC, with Kinetik Holdings Inc. issuing approximately 100 million shares of its common stock to the sellers. The company also entered into a new credit agreement on the same date.
Why It Matters
This acquisition significantly expands Kinetik's asset base in the natural gas transmission sector, potentially leading to increased revenue and market share.
Risk Assessment
Risk Level: medium — The acquisition involves a significant issuance of stock and a new credit agreement, which could impact the company's financial leverage and future performance.
Key Numbers
- 100 million shares — Shares Issued (Issued to sellers of Turquoise Energy LLC)
Key Players & Entities
- Kinetik Holdings Inc. (company) — Acquiring company
- Turquoise Energy LLC (company) — Acquired company
- 100 million shares (dollar_amount) — Stock issued for acquisition
- June 24, 2024 (date) — Date of acquisition completion
FAQ
What was the effective date of the acquisition of Turquoise Energy LLC?
The acquisition of Turquoise Energy LLC was completed on June 24, 2024.
How many shares of Kinetik Holdings Inc. common stock were issued in the acquisition?
Approximately 100 million shares of Kinetik Holdings Inc. common stock were issued to the sellers of Turquoise Energy LLC.
Did Kinetik Holdings Inc. enter into any new financing agreements?
Yes, Kinetik Holdings Inc. entered into a new credit agreement on June 24, 2024.
What is Kinetik Holdings Inc.'s primary business sector?
Kinetik Holdings Inc. is primarily involved in Natural Gas Transmission, as indicated by its SIC code 4922.
What was Kinetik Holdings Inc. formerly known as?
Kinetik Holdings Inc. was formerly known as Altus Midstream Co and Kayne Anderson Acquisition Corp.
Filing Stats: 1,378 words · 6 min read · ~5 pages · Grade level 12 · Accepted 2024-06-28 06:04:30
Key Financial Figures
- $0.0001 — stered Class A Common Stock, par value $0.0001 per share KNTK New York Stock Excha
- $765 million — gregate purchase price of approximately $765 million (the "Durango Acquisition"), consisting
- $315 million — tion"), consisting of (i) approximately $315 million of cash paid at closing, (ii) approxima
- $75 million — 5. Durango Seller is also entitled to a $75 million earn out in cash contingent upon the Ki
- $100 m — ected to result in proceeds of at least $100 million, subject to certain other limitat
Filing Documents
- d822789d8k.htm (8-K) — 35KB
- d822789dex41.htm (EX-4.1) — 121KB
- d822789dex101.htm (EX-10.1) — 21KB
- d822789dex991.htm (EX-99.1) — 8KB
- g822789g85q76.jpg (GRAPHIC) — 5KB
- 0001193125-24-171159.txt ( ) — 356KB
- kntk-20240624.xsd (EX-101.SCH) — 3KB
- kntk-20240624_lab.xml (EX-101.LAB) — 18KB
- kntk-20240624_pre.xml (EX-101.PRE) — 11KB
- d822789d8k_htm.xml (XML) — 4KB
Financial Statements and Exhibits
Financial Statements and Exhibits. (a)Financial Statements of Businesses Acquired. To be filed by amendment not later than 71 calendar days after the date this Current Report on Form 8-K is required to be filed. (b)Pro Forma Financial Information. To be filed by amendment not later than 71 calendar days after the date this Current Report on Form 8-K is required to be filed. (d)Exhibits. Exhibit No. Description 4.1 Registration Rights Agreement, dated as of June 24, 2024, by and among Kinetik Holdings Inc. and Durango Midstream LLC. 10.1 Observer Rights Agreement, dated as of June 24, 2024, by and among Kinetik Holdings Inc., Kinetik Holdings LP and Durango Midstream LLC. 10.2 Membership Interest Purchase Agreement, dated as of May 9, 2024, by and among Kinetik Holdings Inc., Kinetik Holdings LP and Durango Midstream, LLC (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on May 13, 2024). 99.1 Press Release, dated June 24, 2024, issued by Kinetik Holdings Inc. (furnished solely for purposes of Item 7.01 of this Form 8-K). 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). Certain schedules and similar attachments to this exhibit have been omitted pursuant to Item 601(a)(5) and/or Item 601(b)(10)(iv), as applicable, of Regulation S-K. The Company agrees to furnish an unredacted, supplemental copy (including any omitted schedule or attachment) to the SEC upon request. Redactions and omissions are designated with brackets containing asterisks. 3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: June 28, 2024 KINETIK HOLDINGS INC. By: /s/ Todd Carpenter Name: Todd Carpenter Title: General Counsel, Assistant Secretary and Chief Compliance Officer 4