Altus Midstream announces 4Q and full-year 2021 results

Altus Midstream

Altus Midstream Company, a Texas midstream C-corporation, announced its 4Q and full-year 2021 results on Monday.

Firstly, the company reported that gathering and processing volumes averaged 440 million cubic feet per day for the full-year results. Approximately 74% of which was rich gas.

Secondly, Altus reported net income, including noncontrolling interests, of $99 million. The company also generated an adjusted EBITDA of approximately $284 million for the whole year.

For the fourth-quarter 2021 results, Altus highlighted that G&P throughput volumes averaged 427 million cubic feet per day. Approximately 76% of which was rich gas.

In addition, the company reports a fourth-quarter net loss, including noncontrolling interests, of $47 million. And adjusted EBITDA was approximately $80 million.

About the company’s overall results, Clay Bretches, Altus Midstream CEO and president, said: “Altus Midstream’s results in 2021 were bolstered by the strong performance of the natural gas and NGL pipelines as well as the steady contributions from our gathering and processing business.  Results benefited from new completions at Alpine High and the timely commissioning of the Permian Highway Pipeline.” He made a remark that “since 2018, execution has been impressive, which reflects the thorough commitment of our team to safe and efficient operations.”

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Altus Midstream and EagleClaw Midstream

Moreover, the executive mentioned how “the combination with EagleClaw Midstream is a great next step for Altus, and I look forward to its future success as a premier operator.” 

On October 21, 2021, Altus Midstream and EagleClaw Midstream announced an all-stock business combination. This makes it the most extensive integrated midstream company in the Delaware Basin. Additionally, the estimated enterprise value today is $9 billion.

Altus Midstream reported that the combined company generates a balanced mix of earnings from gathering, processing, and long-haul pipeline transportation. Representing approximately 65% and 35% of 2022 estimated EBITDA, respectively.

As for 2023 and future projections, EBITDA synergies of at least $50 million per year are projected by 2023. Approximately $175 million in cumulative capital savings over the next five years.

Moreover, Altus’ has a commitment to maintain an annual dividend of $6 per share through 2023, targeting 5% dividend growth after that. This will achieve and maintain a leverage ratio of 3.5x or less.

Finally, a few weeks ago, Altus announced its shareholders vote in favor of the business combination with BCP Raptor Holdco, LP, the parent company of EagleClaw. The company expects to close the combination around these days. The combined company will operate as Kinetik.

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