Kinetik: First Time Issuer Outlook and Q&A
Date: May 25, 2022
Presenter: Charles Johnston
Guest Speakers: Jamie Welch & Trevor Howard
Summary
CreditSights Senior Analyst, Charles Johnston, and Kinetik CEO, Jamie Welch, discuss KNTK in advance of a potential inaugural issuance that could be the largest High Yield Energy new issue of 2022 with rising star potential in 2023.
KNTK has ~$3bn of debt outstanding with intentions to term out a portion near-term and 100% of KNTK debt will be sustainability-linked.
KNTK is an $8.4bn EV Permian pure-play Midstream operator with a mix of G&P and long-haul pipeline assets. KNTK will be a first-time issuer after the $9bn merger of EagleClaw Midstream and Altus Midstream closed earlier this year.
We will review its business outlook, assets, contracts and counterparties, as well as answer any questions CreditSights clients may have. It’s a great opportunity to get up to speed on a company that hopes to tap the High Yield markets for the first time and achieve Investment Grade ratings near-term.
Speakers:
Jamie Welch
PRESIDENT & CHIEF EXECUTIVE OFFICER
Kinetik
Mr. Welch has served as our Chief Executive Officer, President and Chief Financial Officer and as a member of our board of directors since the closing of the merger between EagleClaw Midstream and Altus Midstream. Prior to the closing of the merger between EagleClaw Midstream and Altus Midstream, he served as President, Chief Executive Officer and Chief Financial Officer of BCP GP, a position he held since May 2021. From April 2019, he has been President and CEO and before then was President and CFO. He has also served as director of BCP GP since June 2017. Prior to joining BCP GP, he was the Group Chief Financial Officer and Head of Business Development for the Energy Transfer Equity, L.P. (“ETE”) family from June 2013 to February 2016. Mr. Welch also served on the Board of Directors of ETE, Energy Transfer Partners and Sunoco Logistics. Mr. Welch joined Blackstone Energy Partners as a Senior Advisor in July 2016. Before joining ETE, Mr. Welch was Head of the EMEA Investment Banking Department and Head of the Global Energy Group at Credit Suisse. He was also a member of the Investment Banking Division Global Management Committee and the EMEA Operating Committee. Mr. Welch joined Credit Suisse First Boston in 1997 from Lehman Brothers Inc. in New York, where he was a Senior Vice President in the global utilities and project finance group. Prior to that he was an attorney in New York with Milbank, Tweed, Hadley & McCloy and a barrister and solicitor with Minter Ellison in Melbourne, Australia. Mr. Welch received a Bachelors of Law and a Diploma of Legal Practice from Queensland University of Technology
Charles Johnston
SENIOR ANALYST – IG/HY ENERGY INFRASTRUCTURE (MLPS) AND HY E&PS
CreditSights
Charles is the Senior Analyst responsible for coverage of investment grade and high yield MLP/Energy Infrastructure names, as well as high yield E&Ps. After building out CreditSights coverage of high yield Midstream and Canadian Midstream names, he assumed coverage of the full MLP/Energy Infrastructure sector from Andy Devries in January 2016. He also became responsible for CreditSights IG E&P research in early 2019, which this transitioned to high yield E&Ps after the COVID driven downturn resulted in core E&P coverage losing investment grade ratings. Charles joined CreditSights in 2012 and previous coverage includes primary responsibility for Coal Producers as they moved from high yield to distressed and into bankruptcy and secondary coverage for Independent Power Producers. Prior to joining CreditSights, he worked in equity research at Telsey Advisory Group. Charles received his Bachelor of Science in Finance from University of Central Florida and his Master of Science in Finance from Florida International University. Charles is a member of the New York Society of Securities Analysts and a CFA Charterholder.
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