HOUSTON, May 16, 2022 (GLOBE NEWSWIRE) — Kinetik Holdings Inc. (KNTK) (“Kinetik” or the ”Company“) today published its Sustainability-Linked Financing Framework (“Framework”), which links its Environmental, Social and Governance (“ESG”) commitments to the Company’s broader financing strategy.
“Together with our upcoming Sustainability Report to be released this summer, today’s announcement strengthens our commitment to positively impact climate change and build an even more diverse and inclusive culture in our workplace,” said Jamie Welch, President and CEO. “We strongly believe that integrating sustainability initiatives into our business decisions and financing strategy is essential to creating value for our stakeholders and is quite simply good business. These measures accelerate our move towards achieving net-zero greenhouse gas emissions by 2050 while also advancing our overall commitment to diversity, equity and inclusion.”
The Framework outlines the principles of Kinetik would follow in connection with the issuance of Sustainability-Linked Financing instruments, including Sustainability-Linked Bonds, Sustainability-Linked Loans or any other Sustainability-Linked instruments.
The following key performance indicators (”KPIs“) have been selected to measure progress against Kinetik’s environmental and social sustainability performance targets (“SPTS“):
- Greenhouse Gas (“GHG”) Emissions Intensity
- Methane Emissions Intensity
- Female Representation in Corporate Officer Positions
These KPIs provide transparency and ensure meaningful progress is made towards Kinetik’s SPTs, which align with Kinetik’s long-term ESG initiatives and commitments. The designated SPTs are as follows:
- Reduce GHG emissions intensity by 35% by 2030, relative to the 2021 baseline.
- Reduce methane emissions intensity by 30% by 2030, relative to the 2021 baseline.
- Increase female representation in corporate officer positions to 20% by year end 2026.
The Framework and SPTs demonstrate Kinetik’s commitment to achieve net-zero greenhouse gas emissions by 2050, support the Global Methane Pledge and champion women in the workplace.
Kinetik obtained an independent second party opinion (“SPO”) from ISS ESG on the Framework and has confirmed its alignment with the International Capital Markets Association’s Sustainability-Linked Bond Principles and Loan Syndications & Trading Association’s Sustainability-Linked Loan Principles.
“We are proud of Kinetik’s achievements to date in emissions reductions and will continue to adopt and develop best practices to ensure future success,” said Matt Wall, COO. “We believe Kinetik has an integral role to play in addressing climate change and we recognize that we are uniquely positioned to drive progress within our industry. Transportation is a critical component in the energy value chain, and we aim to be a leader in reducing the emissions required to deliver natural gas to its end-markets. The goals and initiatives outlined in our Sustainability-Linked Financing Framework challenge our Company to make tomorrow’s natural gas cleaner than today’s.”
The Framework and the SPO are available below and on Kinetik’s website.
Sustainability-Linked Financing Framework
ISS ESG SPO
Kinetik is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation operating in the Delaware Basin. Kinetik is headquartered in Houston and Midland, Texas. Kinetik provides comprehensive collection, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water. Kinetik posts announcements, operational updates, investor information and press releases on its website, www.kinetik.com.
This news release includes certain statements that may constitute “forward-looking statements” for purposes of the federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “seeks,” “possible,” “potential,” “predict,” “project,” “prospects,” “guidance,” “outlook,” “should,” “would,” “will,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about the Company’s future plans, expectations, and objectives for the Company’s operations, including statements about strategy, synergies, and future operations, ESG financial goals and initiatives, 2022 guidance and our ability to refinance our existing indebtedness. While forward-looking statements are based on assumptions and analyzes made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See Part II, Item 1A. Risk Factors in our Quarterly Report on Form 10-Q for the period ended March 31, 2022. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligations to publicly update any forward-looking statement, whether as a result of new information, future development, or otherwise, except as may be required by law.