Business Context and Reporting Period
This Form 8-K was filed by Altus Midstream Company (not Kinetik Holdings Inc.) on February 7, 2020. The report details a material definitive agreement entered into by its subsidiary, Altus Midstream LP, regarding its credit facilities.
Key Financial Metrics and Debt
- Credit Facility Increase: Aggregate commitments under the Credit Agreement increased to $800 million.
- Performance Metric: The consolidated net income of the Partnership and its restricted subsidiaries (as adjusted) for the fiscal quarter ended December 31, 2019, exceeded $175 million on an annualized basis.
- Administrative Agent: JPMorgan Chase Bank, N.A.
Material Changes
The filing reports the execution of a Second Amendment to the Credit Agreement. This amendment was triggered by the satisfaction of a condition ending the "Initial Period" under the original agreement. Consequently, the Initial Period officially ended on December 31, 2019, and the post-Initial Period commenced.
Outlook and Management Commentary
The filing includes a standard cautionary note stating that the summary of the Credit Agreement is not complete and is subject to the full text of the Amendment and related exhibits. It explicitly warns investors not to rely on representations or warranties in the Credit Agreement as characterizations of the actual state of facts, as these were made solely for the benefit of the contracting parties.
Investor Verification Checklist
- Verify the full text of the Second Amendment to Credit Agreement (Exhibit 10.1) for specific covenants and terms.
- Confirm the calculation methodology for the $175 million annualized net income threshold used to trigger the commitment increase.
- Review the First Amendment (Exhibit 10.2) and the original Credit Agreement (Exhibit 10.3) to understand the full history of the facility terms.
- Note that the registrant is Altus Midstream Company, not Kinetik Holdings Inc.