Kinetik unlocks new potential in the Texas Delaware Basin

Kinetik Holdings has signed a definitive agreement to acquire natural gas and crude oil gathering systems in Reeves County, Texas, from Permian Resources. The purchase price of 180 million USD in cash will expand Kinetik's activities in the Texas Delaware Basin, particularly in Reeves County. This will provide a multi-stream opportunity that includes natural gas gathering, compression and processing, as well as crude oil gathering services. The strategic acquisition enables Permian Resources to transfer approximately 60,000 gross operated acres to Kinetik under long-term, fixed-fee agreements. The assets in question include over 250 million cubic feet per day (mcf/d), primarily electrically powered compressors, and a private electrical distribution system. Additionally, the transaction includes more than 150 mcf/d of gathered gas volume and 25,000 barrels per day of crude oil expected by 2025. Kinetik views this acquisition not only as highly competitive but also as a complementary addition to the company’s high-quality, organic portfolio that meets strict investment criteria. Control over residual gas and liquid gas from the tied rich gas offers further upside potential, which is intended to be optimized and integrated with Kinetik's existing assets to enhance the company's overall value. Jamie Welch, President and CEO of Kinetik, expressed enthusiasm: "This investment opportunity strengthens our strategic partnership with Permian Resources, one of the most active and cost-effective operators in the Delaware Basin. We are excited to continue expanding our Delaware gas and crude oil systems with this well-matched complementary acquisition. The assets are located in close proximity to our existing Delaware South system and will be integrated shortly after closing.