Kinetik Reaches Final Investment Decision on the 300 Mmcf/d Kings Landing II Project

Key Terms

final investment decision financial

A final investment decision is the point at which a person or organization chooses to move forward with a particular project or purchase after reviewing all the necessary information and options. It is like deciding to buy a house after considering all the costs, benefits, and alternatives. This decision is important because it determines whether and when the investment will be made, impacting future financial plans and outcomes.

natural gas processing plant technical

A natural gas processing plant is a facility that cleans and separates raw gas from wells into usable products—primarily the pipeline-quality methane used for heating and electricity, plus liquids like propane and butane that are sold separately. Think of it like a kitchen that sorts and refines a harvest into finished goods; its performance and capacity influence how much product is saleable, the costs of getting gas to market, regulatory and safety obligations, and therefore the revenue and risk profile investors watch closely.

Mmcf/d technical

mmcf/d stands for million cubic feet per day, a measure of how much natural gas is produced, transported or consumed each day. Investors watch it because daily gas flow directly affects a producer’s revenue potential and operational capacity—think of it like tracking how many gallons per day a factory fills: higher, steady flow usually means more sales and clearer forecasts, while drops or variability can signal problems or changing demand.

sour gas technical

Sour gas is natural gas that contains significant amounts of hydrogen sulfide (a toxic, rotten-egg–smelling gas) and often corrosive carbon dioxide, which makes it hazardous to handle and damaging to equipment. For investors, sour gas matters because it requires extra safety measures, specialized processing and infrastructure, and stricter regulation, all of which raise operating costs, liability risk and project timelines compared with “sweet” (low-impurity) gas — like buying fuel that needs costly cleaning before use.

capital expenditures financial

Capital expenditures are the money a company spends to buy or improve big assets like buildings, equipment, or machines that will last a long time. These investments matter because they help the company grow and operate more efficiently, similar to how upgrading a home’s appliances or adding a new room can make it better and more valuable.

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HOUSTON & MIDLAND, Texas--(BUSINESS WIRE)-- Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik” or the “Company”) today announced it has reached final investment decision on Kings Landing II (“KLII”), a 300 million cubic feet per day (“Mmcf/d”) natural gas processing plant at its existing Kings Landing complex in New Mexico. KLII is a 50% increase from the originally contemplated 200 Mmcf/d capacity expansion.

“We remain excited by the continued growth and robust development activity in the Northern Delaware Basin,” said Jamie Welch, President & CEO of Kinetik. “Our decision to proceed with KLII at this expanded scale is a direct response to this activity. Today’s announcement reflects the strength of our existing acreage footprint, the accelerated pace of customer development plans, and sustained commercial momentum. Importantly, the construction and design of KLII preserves the ability to add a third 200 Mmcf/d processing plant at the Kings Landing complex.”

Upon completion of KLII in the second half of 2028, Kinetik’s system-wide processing capacity will exceed 2.7 billion cubic feet per day, with more than 700 Mmcf/d of sour gas processing capacity in northern Eddy and Lea Counties.

KLII is estimated to cost approximately $260 million. With KLII’s increased processing capacity, Kinetik now expects to be at the top end of its 2026 Capital Expenditures¹ Guidance range of $450 million to $510 million.

About Kinetik Holdings Inc.

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 gathering, 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.

Forward-Looking Statements

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, outlooks, guidance 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 business strategy and plans, expectations, and objectives for the Company’s operations, including statements about strategy, synergies, growth, expansion, and other capital projects and the timing and cost thereof, future operations, financial guidance, growth opportunities. While forward-looking statements are based on assumptions and analyses 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 I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 26, 2026. 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 obligation 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.

1.

Net of contributions in aid of construction and returns of invested capital from unconsolidated affiliates.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260519707056/en/

Kinetik Investors:
Alex Durkee
Shyam Patel
(713) 493-0900
investors@kinetik.com

Source: Kinetik Holdings Inc.