Altus Midstream Business Model Canvas

Kinetik Energy, formerly Altus Midstream, strategically teams up with tech and service providers to boost operational efficiency and reduce its environmental impact. These alliances focus on incorporating advanced tech for emissions reduction and enhancing data analytics for improved decision-making processes. As of Q3 2024, Kinetik reported a 15% decrease in methane emissions due to these tech integrations. These partnerships are key in maintaining its competitive advantage in the midstream sector.

• Collaboration with companies specializing in leak detection and repair (LDAR) technologies.
• Partnerships to optimize pipeline monitoring and maintenance.
• Data analytics providers to improve operational insights.
• Implementation of digital solutions for supply chain management.

Kinetik, through Altus Midstream, fosters community partnerships in the Permian Basin. These collaborations, including with the Permian Strategic Partnership, focus on boosting local communities. They invest in areas like education, infrastructure, and healthcare. This commitment to community engagement is crucial for maintaining a positive operational environment.

• Permian Strategic Partnership members invested over $1 billion in community programs by 2024.
• Kinetik's community investments support local economic development.
• Such partnerships improve the local quality of life.
• Social license to operate is crucial for long-term sustainability.

Kinetik's strategic location in the Delaware Basin is a key resource. This placement offers access to abundant oil and gas reserves. It allows Kinetik to benefit from the Permian Basin's expansion. The Permian Basin's oil production reached 5.6 million barrels per day in 2024. This positioning supports Kinetik's growth and operational efficiency.

• Strategic access to abundant oil and gas reserves.
• Benefit from the Permian Basin's growth.
• Supports operational efficiency and expansion.
• Permian Basin produced 5.6 million barrels/day in 2024.

Altus Midstream, now part of Kinetik, relies heavily on its skilled workforce as a crucial resource. This team possesses expertise in midstream operations, engineering, and business development, vital for its infrastructure and growth. In 2024, Kinetik's commitment to safety and customer service remained a core aspect of its culture. The workforce's skills are essential for the safe and efficient operation of pipelines and processing facilities.

• Kinetik's workforce directly supports its operational efficiency.
• Expertise includes engineering and business development.
• Safety and customer service are emphasized company-wide.
• The team maintains critical midstream infrastructure.

Kinetik prioritizes open communication and collaboration with its customers. Regular meetings and operational performance updates are standard practice. Transparent communication fosters trust and strengthens relationships within the industry. This approach is essential for maintaining strong partnerships.

• Kinetik reported a net loss of $10.3 million in Q1 2024, compared to $18.5 million in Q1 2023.
• Total revenues for Q1 2024 were $101.1 million.
• Kinetik's focus on customer relationships is crucial for navigating market dynamics.
• Operational excellence is achieved through constant dialogue.

Kinetik, through Altus Midstream, excels in crafting bespoke midstream solutions. These tailored offerings cover gathering systems, processing agreements, and transportation plans, all designed to fit customer needs. This customization fosters customer satisfaction and encourages sustained partnerships. For example, in 2024, Kinetik saw a 15% increase in repeat business due to customized service contracts.

• Tailored solutions lead to customer satisfaction.
• Customization drives long-term partnerships.
• Gathering, processing, and transportation arrangements are all customized.
• Repeat business increased by 15% in 2024 due to custom services.

Kinetik has broadened its customer base to include private producers, a move significantly boosted by acquisitions such as Durango Permian. These private producers gain access to Kinetik's comprehensive midstream services, streamlining their operations. This expansion not only diversifies Kinetik's revenue streams but also strengthens its market position. In 2024, Kinetik's strategic shift is evident in its operational growth and partnerships within the Permian Basin.

• Acquisition of Durango Permian expanded customer base.
• Private producers utilize integrated midstream services.
• Diversification strengthens market position.
• Operational growth and partnerships in Permian Basin.

Downstream customers, such as refineries and petrochemical plants along the Gulf Coast, benefit from Altus Midstream's services. These entities depend on the company to transport hydrocarbons to their facilities. Altus indirectly supports these customers through its transportation services, crucial for their operations. The Gulf Coast refining capacity stood at approximately 9.8 million barrels per day in 2024.

• Refineries and petrochemical plants utilize the transported hydrocarbons.
• Altus Midstream facilitates their supply chain.
• Export terminals also benefit from the transportation services.
• This supports the overall energy infrastructure.

Kinetik generates revenue by selling natural gas liquids (NGLs) and condensate recovered during processing. These sales provide a crucial revenue stream, yet they can fluctuate based on commodity prices. NGL and condensate sales contribute significantly to Kinetik's overall financial performance. In 2024, NGL prices have shown volatility due to supply and demand shifts.

• NGLs and condensate sales are a key revenue driver for Kinetik.
• Revenue is susceptible to commodity price fluctuations.
• These sales provide additional revenue streams.
• In 2024, volatility has been observed in NGL prices.

Kinetik, a key player in midstream operations, generates revenue through water management services, a critical aspect of oil and gas production. These services encompass the gathering and disposal of water produced during drilling and operations. Fees are primarily volume-based, meaning Kinetik charges producers according to the amount of water it handles. This revenue stream is increasingly vital, reflecting the growing significance of efficient water management in the energy sector.

• Kinetik's water management services include water gathering and disposal.
• Revenue is derived from fees based on the volume of water managed.
• This revenue stream is becoming increasingly important for Kinetik.