What is Brief History of Altus Midstream Company?

Altus Midstream Bundle

Get Full Bundle:

	SWOT	$15	$10
	5 FORCES	$15	$10
	BCG	$15	$10
	CANVAS	$15	$10
	4P's MIX	$15	$10
	PESTLE	$15	$10

TOTAL:

ADD TO CART

What's the Story Behind Altus Midstream?

The midstream energy sector is a complex web, and understanding its players is crucial for savvy investors and strategists. This journey begins with Altus Midstream SWOT Analysis, a company that emerged and transformed within this dynamic landscape. From its inception, Altus Midstream, an energy company, has navigated significant shifts, making its history a compelling case study in strategic adaptation.

This brief overview of Altus Midstream history will uncover the key milestones and strategic decisions that shaped its trajectory. We'll explore its role in the Permian Basin, its evolution through mergers, and its current status as a leading provider of pipeline infrastructure and midstream operations. Understanding Altus Midstream's company background provides valuable insights into the broader energy market and the forces driving its evolution.

The story of Altus Midstream began on November 6, 2018. This marked the formal establishment of the Altus Midstream, born from a business combination between Apache Corporation (APA) and Kayne Anderson Acquisition Corporation (KAAC).

Before becoming Altus Midstream, Kayne Anderson Acquisition Corporation was a special purpose acquisition company (SPAC). Upon the completion of the transaction, the company officially transitioned into Altus Midstream.

Founding Story

The initial goal for Altus Midstream was to become the only publicly traded, pure-play Permian Basin midstream C-corporation, capitalizing on Apache Corporation's Alpine High resource play.

• Brian Freed, the CEO and President of Altus Midstream, highlighted the company's high-growth gathering and processing business.
• The company also had options to acquire equity interests in five top-tier Permian Basin pipeline projects.
• The original business model focused on integrated midstream services, including natural gas gathering, processing, and transmission.
• Altus Midstream aimed to serve Apache Corporation's production in the Alpine High play within the Delaware Basin.

The company started with a strong financial foundation, with no debt and a significant cash reserve. This allowed them to fund organic growth and pursue opportunities like third-party gathering and processing, as well as mergers and acquisitions. In November 2018, Altus Midstream secured an $800 million unsecured five-year revolving credit facility. It started with a capacity of $450 million, with the potential to grow to $1.5 billion.

For more insights into the company's strategic moves, consider reading about the Marketing Strategy of Altus Midstream.

Altus Midstream SWOT Analysis

• Complete SWOT Breakdown
• Fully Customizable
• Editable in Excel & Word
• Professional Formatting
• Investor-Ready Format

GET TEMPLATE ➔

Following its formation in late 2018, Altus Midstream embarked on a period of strategic growth and expansion. This early phase focused on establishing and strengthening its presence in the Permian Basin. The company quickly developed a pipeline infrastructure to support its midstream operations. Key acquisitions and strategic moves defined its trajectory.

Initial Infrastructure and Investment

Initially, Altus Midstream's assets included approximately 182 miles of in-service natural gas gathering pipelines. It also had 46 miles of residue gas pipelines with four market connections. A significant early investment was the exercise of its option for a stake in the Permian Highway Pipeline for $161 million.

Merger with EagleClaw Midstream

A pivotal moment in the occurred in February 2022. Altus Midstream merged with BCP Raptor Holdco LP, the owner of EagleClaw Midstream, to form Kinetik Holdings Inc. This all-stock business combination created the largest pure-play midstream company in the Delaware Basin. This merger significantly expanded its operational footprint and capabilities.

Post-Merger Growth and Acquisitions

Post-merger, Kinetik continued its growth through strategic acquisitions and organic projects. In June 2024, Kinetik acquired Durango Permian LLC. In December 2024, Kinetik acquired natural gas and oil gathering systems from Permian Resources, further expanding its midstream infrastructure in the Permian Basin.

Financial Performance in 2024

As of December 31, 2024, Kinetik processed natural gas volumes of 1.64 Bcf/d for the full year and 1.74 Bcf/d for the fourth quarter. The company reported full-year 2024 net income of $244.2 million and Adjusted EBITDA of $971.1 million. Kinetik's annual net change in short-term investments for 2024 was $0.521 billion.

Altus Midstream PESTLE Analysis

• Covers All 6 PESTLE Categories
• No Research Needed – Save Hours of Work
• Built by Experts, Trusted by Consultants
• Instant Download, Ready to Use
• 100% Editable, Fully Customizable

GET TEMPLATE ➔

Kinetik, which emerged from the merger of Altus Midstream and BCP Raptor Holdco LP in February 2022, has achieved several significant milestones in its Altus Midstream history. This merger was a pivotal moment, establishing the largest publicly traded, fully integrated midstream company in the Delaware Basin, enhancing operational efficiency and customer service.

Kinetik has focused on expanding its processing capacity and pipeline network, a key innovation in its midstream operations. The company's strategic expansions and acquisitions have significantly enhanced its infrastructure and capabilities within the energy market.

Processing Capacity Expansion

The Diamond Cryo expansion added 120 MMcf/d of processing capacity. The Kings Landing Complex, expected to be operational in Q2 2025, will add 220 MMcf/d.

Pipeline Network Growth

The Delaware Link, a 30-inch residue gas pipeline, was on schedule for an October 2023 in-service date. A new 20-mile rich-gas pipeline in New Mexico became operational in January 2024.

Strategic Acquisitions

Acquisition of natural gas and crude oil gathering systems in Reeves County, Texas, closed in January 2025. These acquisitions expand midstream infrastructure and capabilities.

Technological Advancements

Kinetik leverages state-of-the-art technology to enhance reliability and flexibility for its customers. This includes advanced pipeline monitoring and processing techniques.

Customer-Focused Approach

Kinetik prioritizes a 'customer first' approach to build strong relationships and ensure satisfaction. This strategy supports long-term growth and partnerships.

Sustainability Initiatives

The company aims for net-zero GHG emissions by 2050, demonstrating a commitment to environmental responsibility. This includes investing in carbon capture and other green technologies.

Kinetik has faced challenges such as market downturns and competitive pressures, common in the energy company sector. Despite these, the company has shown resilience and strategic adaptability.

Market Volatility

Fourth-quarter 2024 earnings fell short of expectations, with an EPS of $0.01. Revenue also missed estimates, at $385.72 million against a forecast of $393.45 million.

Competitive Pressures

The midstream operations face competition from other companies in the Permian Basin. Kinetik must continuously innovate to maintain its market position.

Financial Performance

Full-year adjusted EBITDA for 2024 increased by 16%, indicating strong annual performance. This demonstrates the company's ability to generate robust financial results.

Operational Challenges

Major construction projects and system expansions can present operational hurdles. Careful project management is critical to avoid delays and cost overruns.

Acquisition Integration

Integrating acquired assets, such as those in Reeves County, can be complex. Successfully integrating these assets is crucial for realizing the full benefits of the acquisitions.

Regulatory and Environmental Factors

The energy market is subject to environmental regulations and policy changes. Kinetik's commitment to net-zero emissions by 2050 is a proactive response to these challenges.

Altus Midstream Business Model Canvas

• Complete 9-Block Business Model Canvas
• Effortlessly Communicate Your Business Strategy
• Investor-Ready BMC Format
• 100% Editable and Customizable
• Clear and Structured Layout

GET TEMPLATE ➔

The Altus Midstream history, now operating as Kinetik, showcases a dynamic evolution in the midstream sector. The company's journey began in 2016, evolving through strategic acquisitions and infrastructure developments. Key milestones include its formation in 2018, a significant post-IPO funding round in 2019, and the transformative merger with BCP Raptor Holdco LP in 2022, establishing Kinetik as a major player in the Delaware Basin. Further expansion occurred through acquisitions and pipeline projects, culminating in strong financial results reported in early 2025.

Financial Performance

Kinetik's financial outlook for 2025 is robust. The company projects an Adjusted EBITDA between $1.09 billion and $1.15 billion. Capital guidance for the year is set between $450 million and $540 million, encompassing growth and maintenance expenditures, including a $75 million consideration for the Kings Landing Complex.

Strategic Initiatives

The company is focused on expanding its footprint in the Permian Basin, a key area for growth. Kinetik is exploring opportunities with New Mexico producers to enhance its position. The company aims to be the leading midstream service provider in the Texas Delaware Basin.

Operational Expansion

Kinetik is set to benefit from capital projects completed in late 2023 and early 2024, anticipating meaningful Adjusted EBITDA growth. The Kings Landing Complex, expected to be operational in the second quarter of 2025, will significantly increase capacity. The company also focuses on the integration of ESG metrics.

Long-Term Vision

Kinetik has a long-term commitment to achieve net-zero GHG emissions by 2050. This commitment underscores the company's dedication to sustainability. This forward-looking approach aligns with adapting to industry demands and sustainability goals as a leading energy company.

Altus Midstream Porter's Five Forces Analysis

• Covers All 5 Competitive Forces in Detail
• Structured for Consultants, Students, and Founders
• 100% Editable in Microsoft Word & Excel
• Instant Digital Download – Use Immediately
• Compatible with Mac & PC – Fully Unlocked

GET TEMPLATE ➔

Related Blogs