Permian Basin midstream company Kinetik Holdings has entered a $150 million agreement with PNC Bank to pay down outstanding borrowings on its term loan, decreasing the remaining balance to $1 billion, according to an April 3 press release.
The company and bank created a $150 million accounts receivable securitization facility, scheduled to mature in April 2025, with an ongoing renewal mechanism, according to a press release from Kinetik.
Accounts receivable securitization is a financing technique in which a company converts its accounts receivable, or outstanding invoices, into financial instruments that can be sold to investors, according to information on PNC’s website.
The initial base of $150 million will vary with the value Kinetik’s accounts receivable balance. The maturity of the term loan will extend to Dec. 8, 2026.
Kinetik is headquartered in Midland, Texas, with operations focused on transport of products from the Delaware Basin to the Gulf Coast.
Recommended Reading
Exclusive: Can NatGas Save the 'Fragile' Electric Grid?
2024-02-28 - John Harpole, the founder and president of Mercator Energy, says he is concerned about meeting peak electric demand and if investors will hesitate on making LNG export facilities investment decisions after the Biden administration's recent LNG pause, in this Hart Energy LIVE Exclusive interview.
Exclusive: Adkins on Challenged Gas Prices, Growing Crude Demand
2024-05-15 - J. Marshall Adkins, head of energy investment banking at Raymond James, details the future of natural gas prices and misconceptions about crude demand coming to an end in this Hart Energy Exclusive interview.
Exclusive: Chevron Balancing Low Carbon Intensity, Global Oil, Gas Needs
2024-03-28 - Colin Parfitt, president of midstream at Chevron, discusses how the company continues to grow its traditional oil and gas business while focusing on growing its new energies production, in this Hart Energy Exclusive interview.
Exclusive: Despite Uncertainty, NatGas Balances Out
2024-03-04 - McKinsey and Co.'s Luciano Di Fiori says the natural gas market is capable of balancing itself out—despite LNG permit approval pauses, midstream constraints and dependence on oil production—in this Hart Energy LIVE Exclusive interview with Editorial Director Jordan Blum.
Exclusive: Renewables Won't Promise Affordable Security without NatGas
2024-03-25 - Greg Ebel, president and CEO of midstream company Enbridge, says renewables needs backing from natural gas to create a "nice foundation" for affordable and sustainable industrial growth, in this Hart Energy Exclusive interview.