Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Community Support
• Governance

Environmental Achievements

• Sourcing 100 percent of its required electricity from renewable energy sources beginning April 1, 2021

Social Achievements

• Provided support to its communities throughout the COVID-19 pandemic through donations and involvement in various community outreach programs supporting healthcare workers, local school children, firefighters, emergency responders, law enforcement, and teachers.

Governance Achievements

• Appointed its first independent Board member, Laura Sugg

Climate Goals & Targets

Environmental Challenges

• Maintaining workplace safety and security during the COVID-19 pandemic

Mitigation Strategies

• Implementing an ESG program across its operations with a focus on workplace safety and community support

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate change and GHG emissions
• Health and safety
• Asset and pipeline integrity
• Community engagement
• Diversity and inclusion
• Employee management
• Ethics and compliance
• ESG governance
• Corporate governance
• Environmental management
• Supply chain management

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 16% between 2020 and 2021
• Increased renewable energy use to 49% of total direct operations in 2021
• Achieved zero environmental fines in 2021
• Implemented new methane monitoring and detection equipment
• Sourced 100% of operational energy from renewable sources starting in 2021 (49% achieved in 2021 due to merger timing)

Social Achievements

• Achieved a 55% reduction in preventable motor vehicle accidents (6 incidents in 2021 vs. 14 in 2020)
• Experienced an 85% reduction in total recordable incident rate (TRIR) compared to 2020 (1 incident in 2021)
• Delivered almost 30 hours of training to 160 field employees (double the hours in 2020)
• Launched the EagleNest Foundation to support employees impacted by unexpected life events
• Provided $263,883 in funding to local community causes in 2021
• 100% of employees received DEI training

Governance Achievements

• Established a new sustainability-focused Governance Committee
• Added Deborah Byers to the Board in 2022
• Issued a sustainability-linked bond in 2022 tied to GHG intensity reduction, methane emissions intensity reduction, and increased female executive participation
• 100% of Kinetik’s total debt capital and commitments (over $4 billion) are tied to achieving ESG goals
• All salaried employees, including executives, have 20% of their at-risk pay tied to ESG goals in 2022

Climate Goals & Targets

Environmental Challenges

• Supply chain issues
• Volatile commodity prices
• Methane emissions from compressor engines and process heaters, fugitive emissions, and vehicle fleet
• Potential for spills and leaks
• External corrosion of pipelines
• Seismic activity in the Permian Basin
• Water scarcity in West Texas
• Industry-wide gender imbalance

Mitigation Strategies

• Implementing new methane monitoring and detection equipment
• Reducing leaks through pressurized trucks, storage tank emission control devices, LDAR, OGI cameras, and flyovers
• Electrifying assets (pumps, compressors)
• Sourcing renewable energy
• Industry collaboration (ONE Future, Environmental Partnership)
• Increased visual inspection of pipelines
• Implementing Smart Tools program to confirm pipeline integrity
• Contributing funding towards seismic detection devices
• Participating in research coalition coordinated by the Texas Railroad Commission
• Joining the Oilfield Water Stewardship Council
• Setting a target to increase women on the senior leadership team to 20% by 2026
• Investigating pilot programs to advance high-potential women

Supply Chain Management

Supplier Audits: Pilot program with ISNetworld in 2021; 92% of suppliers met or exceeded expectations on ESG questionnaire in 2021

Responsible Procurement

• Supplier Code of Conduct
• Local sourcing (75% of spend in 2021)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Chronic risks (heat/cold waves)

Transition Risks

• Policy and legal risks
• Technology risks
• Market risks
• Reputation risks

Opportunities

• Continued role in helping producers reduce flaring
• Increased demand for natural gas and LNG

Reporting Standards

Frameworks Used: GRI, SASB, ONE Future

Awards & Recognition

• GPA Midstream Perfect Record Award

Environmental Metrics

ESG Focus Areas

• Climate change and GHG emissions
• Health and safety
• Asset and pipeline integrity
• Community engagement
• Diversity and inclusion
• Governance
• Water scarcity
• Seismicity

Environmental Achievements

• Reduced Scope 1 and Scope 2 greenhouse gas and methane emissions intensities by 6.4% and 12.0%, respectively, year-over-year, despite a 5% increase in gas volumes.
• Achieved a 12.0% reduction in methane emissions intensity from 2021 to 2022 (8.7 percentage points higher than the defined 2022 target in debt agreements).
• 55% of total electricity consumption sourced from renewable energy.

Social Achievements

• Increased female representation in corporate leadership positions.
• Achieved a 17.7% female participation rate in senior leadership in 2022 (8 percentage points higher than the defined 2022 target in debt agreements).
• Implemented a 20% at-risk pay for all salaried employees tied to sustainability and safety goals.
• 271 volunteer hours contributed by employees.

Governance Achievements

• Established a management-level sustainability committee and sustainability working groups.
• Incorporated sustainability-focused risks and opportunities into corporate decisions.
• Published additional sustainability-related policies (Community Investment Plan and Biodiversity Statement).
• Hired a Vice President of Sustainability.
• Became the first and only North American midstream company to link 100% of its debt financings to sustainability initiatives.

Climate Goals & Targets

Environmental Challenges

• Climate change related risks (policy and legal risks, technology risks, market risks, reputational risks, acute risks from extreme weather, chronic risks from heat or cold waves).
• Seismic activity in the Permian Basin.
• Water scarcity in West Texas.

Mitigation Strategies

• Active participation in industry initiatives (ONE Future, The Environmental Partnership).
• Implementation of a robust Leak Detection and Repair (LDAR) program.
• Deployment of cutting-edge emissions monitoring technologies.
• Upgrades to energy-efficient equipment.
• Collaboration with industry peers, regulators, and researchers on seismic activity.
• Contribution to TexNet Infrastructure Fund for seismometer installation.
• Produced water management services to customers, reducing truck trips and potential spills.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sustainability questionnaire for new and re-evaluated suppliers
• Prioritization of local sourcing (62% in 2022).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Longer or more intense heat or cold waves

Transition Risks

• Policy and legal risks
• Technology risks
• Market risks
• Reputation risks

Opportunities

• Increased demand for natural gas and LNG.
• Role in helping producers reduce flaring.

Reporting Standards

Frameworks Used: GRI Standards, SASB, EIC/GPA ESG Reporting Framework

Third-party Assurance: Limited assurance on certain KPIs through an independent third party in 2023

Awards & Recognition

• Ernst & Young Entrepreneur of the Year (Jamie Welch)
• Houston Business Journal Fastest Growing Middle Market Companies
• GPA Midstream Association Entity Awards (Crude and Water assets - 5 years with no lost time incidents)

Environmental Metrics

ESG Focus Areas

• Climate Change
• GHG Emissions
• Health and Safety
• Regulatory Landscape
• Governance
• Employee Management
• Community Engagement

Environmental Achievements

• 91% reduction in Methane Emissions Intensity since 2021, and 22% reduction YoY 2023
• 27% reduction in GHG Emissions Intensity since 2021, and 6% reduction YoY
• 61% electricity usage from renewable sources
• 100% of gas plants and compressor stations voluntarily monitored for methane with advanced aerial OGI technology
• ~18,000 mtCO2e reduction in annual methane emissions by converting 7 compressor stations from pneumatics to instrument air

Social Achievements

• 83% reduction in Total Recordable Incident Rate (TRIR) since 2022
• 0 employee lost time incidents
• 20% of all salaried employees’ at-risk-pay tied to specific safety and sustainability-related goals

Governance Achievements

• 91% of Board directors are independent
• 27% of Board directors identify as women
• 18% of directors are from diverse backgrounds and perspectives
• 100% of debt capital structure directly linked to sustainability performance targets

Climate Goals & Targets

Environmental Challenges

• Evolving stakeholder expectations
• Ever-changing regulatory landscape
• Policy and legal risks arising from the shift to a lower-carbon energy system
• Technology risks impacting demand for gathered, processed, and transported products
• Market risk related to attracting and maintaining investment
• Reputation risks
• Physical risks associated with climate change (drought, wildfires, flooding, storms, etc.)

Mitigation Strategies

• Implementing rigorous measures to minimize GHG and methane emissions
• Adapting infrastructure, accelerating electrification of operations
• Issuing sustainability-linked financing instruments
• Maintaining open dialogue, transparency, and stakeholder education
• Diversifying downstream deliverability for all commodities
• Adjusting procedures, training, equipment to adapt to extreme conditions
• Actively engaging with trade groups, industry associations, and regulators

Supply Chain Management

Supplier Audits: 84% of suppliers meet or exceed sustainability expectations

Responsible Procurement

• Supplier Code of Conduct
• ISNetworld for contractor qualification
• Sustainability questionnaire for new and re-evaluated suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Wildfires
• Flooding
• Storms
• Chronic shifts in temperature and precipitation patterns

Transition Risks

• Policy and legal risks
• Technology risks
• Market risks
• Reputation risks

Opportunities

• Reducing flaring
• Increasing natural gas supply
• Leveraging technology for climate resilience
• CCUS
• e-fuels
• Carbon-neutral power generation

Reporting Standards

Frameworks Used: GRI Standards, SASB, Energy Infrastructure Council/GPA Midstream (EIC/GPA) ESG Reporting Framework

Certifications: Null

Third-party Assurance: Limited assurance on specific KPIs by an independent third-party auditor

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2023 GPA Midstream Safety Award
• 2023 GPA Midstream Perfect Record Award