Kinetik Reports Third Quarter 2026 Results

New gathering and processing agreements dedicated over 30,000 gross acres to Kinetik, with first flow anticipated in 2027.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

HOUSTON & MIDLAND, Texas--(BUSINESS WIRE)-- Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik” or the “Company”) today reported financial and operating results for the quarter ended September 30, 2026.

Kinetik reported net income including noncontrolling interest of $50.9 million and $168.9 million for the three and nine months ended September 30, 2026, respectively. Kinetik generated Adjusted EBITDA¹ of $278.1 million and $810.1 million, Distributable Cash Flow¹ of $213.7 million and $589.5 million, and Free Cash Flow¹ of $87.5 million and $294.1 million for the three and nine months ended September 30, 2026, respectively.

Highlights

• Record processed gas volumes of 1.94 Bcf/d
• Upsized Kings Landing II processing capacity by more than 25% to 380 MMcf/d
• Reached final investment decision on phase 1 of the ECCC Pipeline expansion, which is expected to increase throughput capacity by roughly 50% to approximately 225 MMcf/d
• Ordered long-lead equipment for the Company's next processing expansion beyond Kings Landing II
• Executed new and amended gathering and processing agreements in New Mexico and Texas
• Full year 2026 Adjusted EBITDA¹ expected to be at the high end of the $1.04 billion to $1.1 billion guidance range
• Anticipate full year 2026 Capital Expenditures² to be approximately 5% below guidance of $560 million

CEO Commentary

“Kinetik delivered another strong quarter with record processed gas volumes underscoring the strength and increasing scale of our business,” said Jamie Welch, Kinetik’s President & Chief Executive Officer. “As our strategic growth projects come online and processed gas volumes continue to increase, our financial performance is increasingly driven by durable, repeatable earnings.”

“The momentum we have built throughout the year has continued into the fourth quarter. Producer activity remains strong, processed gas volumes are tracking toward our approximately 2.2 Bcf/d fourth quarter 2026 target, and margins and costs continue to outperform our internal budget expectations.”

Welch added, “Our confidence in the long-term outlook for the Permian Basin has never been stronger. Producers are demonstrating success delineating new benches — which tend to have higher gas-to-oil ratios — making plays like the Woodford, Avalon, First Bone Spring, and Penn Shale more expansive throughout the Delaware Basin, a trend directly playing to Kinetik's strengths. Demand for gathering, processing, and treating capacity is outpacing existing infrastructure in many areas, reinforcing the strategic value of integrated systems. At the same time, more than 13 Bcf/d of incremental takeaway capacity is expected to come online between 2028 and 2030, which we believe will unlock the next wave of producer activity, substantially improve residue gas egress, and reduce Waha price volatility.”

Financial Highlights

		Three Months Ended September 30,				Nine Months Ended September 30,
			2026				2026
		(In thousands, except ratios)
Net income including noncontrolling interest		$	50,922			$	168,910
Adjusted EBITDA1		$	278,144			$	810,128
Midstream Logistics Adjusted EBITDA1		$	203,571			$	587,259
Pipeline Transportation Adjusted EBITDA1		$	78,511			$	239,487
Corporate and Other Adjusted EBITDA1		$	(3,938	)		$	(16,618	)
Distributable Cash Flow1		$	213,732			$	589,487
Dividend Coverage Ratio1,3		1.61x				1.48x
Capital Expenditures2		$	130,596			$	327,948
Free Cash Flow1		$	87,531			$	294,115
Net Debt1,4						$	3,942,976
Liquidity (Cash and Revolver Availability)5						$	1,069,424
Leverage Ratio1,6						3.70x
Net Debt to Adjusted EBITDA Ratio1,7						3.71x
Common stock issued and outstanding8							162,396
Quarterly dividend per share						$	0.81

Segment Insights

The Midstream Logistics segment generated Adjusted EBITDA¹ of $203.6 million, a 34% increase year-over-year for the three months ended September 30, 2026. Kinetik’s processed natural gas volumes increased to 1.94 Bcf/d in the third quarter of 2026, with an additional estimated 25 MMcf/d of Waha price-related gas volume that was shut-in. Third quarter 2026 results also benefited from continued strength in system operating performance and favorable commodity margins realized, which were partially offset by a reduction in residue gas marketing contributions. With all Delaware North processing facilities, including Kings Landing (“KL”), operating at full capacity for much of the third quarter of 2026, the ECCC Pipeline performed as designed, transporting surplus volumes to the Delaware South system.

The Pipeline Transportation segment generated Adjusted EBITDA¹ of $78.5 million, an 18% decrease year-over-year for the three months ended September 30, 2026, primarily due to the Company’s EPIC Crude Holdings, LP divestiture, and to a lesser extent, higher fuel costs at Permian Highway Pipeline and lower throughput volumes at Shin Oak.

2026 Guidance & Outlook

Kinetik now expects its 2026 Adjusted EBITDA¹ to be at the high end of its $1.04 billion to $1.1 billion guidance range, reflecting (i) gas gathering and processing fee benefiting from stronger-than-expected well results; (ii) robust operating performance that has yielded stronger-than-expected equity volumes; and (iii) commodity prices outperforming the Company’s guidance assumptions set forth in August 2026.

Kinetik anticipates 2026 Capital Expenditures² (including maintenance) to be approximately 5% below its August 2026 guidance of $560 million. The capital reduction is largely driven by disciplined execution of the Company’s growth capital program and timing of project spend.

Strategic Projects & Commercial Activity

The Company advanced its portfolio of strategic growth projects, supporting increasing producer activity and long-term volume growth across its footprint.

In September, Kinetik increased the planned processing capacity of KLII by more than 25% to 380 MMcf/d. The expected capital cost remains unchanged at approximately $260 million, as several critical equipment components were under budget, and the project is on track for a mid-2028 in-service date.

Construction activities on the acid gas injection (“AGI”) and sour gas conversion project at KL progressed during the quarter, with the AGI well reaching total depth and acid gas compression equipment delivered on site. This project is expected to be completed by year-end.

The Company reached final investment decision (“FID”) on phase 1 of the ECCC Pipeline expansion, which should increase throughput capacity by roughly 50% to approximately 225 MMcf/d and unlock additional Delaware South processing access for Delaware North customers. Right-of-way acquisition activities were underway during the third quarter of 2026. Pipeline procurement and construction activities on the partial looping of the pipeline should commence in early 2027, with in-service anticipated mid-2027.

Commercial activity remained strong as Kinetik executed new and amended low-pressure gathering and processing agreements with customers across both New Mexico and Texas. Collectively, over 30,000 gross acres were dedicated to Kinetik since the beginning of August. Notably, certain of the dedicated acreage and committed volumes are prospective for the Woodford formation, an emerging play in the Delaware Basin that Kinetik believes will support additional long-term volume growth across its system. First flow for these agreements is anticipated in the second and third quarters of 2027. Importantly, one of these agreements includes a firm, minimum volume commitment from the customer, which provides enhanced cash flow visibility and further de-risks Kinetik’s pipeline and processing investments. The Company is procuring additional compression equipment to accommodate the expected producer volume growth.

The new agreements also provide support toward an FID of the Company’s next processing expansion beyond KLII. Long-lead residue compression equipment has been ordered, and procurement of front-end amine treating and the 400 MMcf/d cryogenic unit is in process. The exact location, in either Texas or New Mexico, has not yet been finalized, and Kinetik will provide further details in the future.

With the Company’s increased volume outlook and rising CO₂ concentrations from Loving and Lea Counties, Kinetik is undertaking an expansion of its front-end amine treating capacity and overall processing capability at its Pecos Bend facility. The Company is also making cost-effective plant modifications to further boost processing capacity and recoveries at the East Toyah, Pecos, and Diamond Cryo processing complexes.

Kinetik also further strengthened its downstream commercial position with two new agreements. First, the Company committed to additional transport capacity on a new long-haul residue gas pipeline connecting the Waha Hub to the Gulf Coast, with the agreement expected to commence in 2029. Second, the Company secured firm access to additional Gulf Coast residue gas pricing, commencing in 2027. Kinetik believes incremental residue gas takeaway capacity will be required to support long-term Permian production growth, and these agreements represent a continuation of its long-term commercial strategy to expand Gulf Coast market access for the residue natural gas of its producer customers.

The Company reached an important milestone in the evolution of its natural gas liquids (“NGL”) transportation and fractionation agreements portfolio as the first of the Lone Star NGL contracts in Texas expired on October 31, 2026, and the remaining contract with Lone Star NGL in Texas will expire at year-end. As these agreements roll off, Kinetik now forecasts more meaningful margin contributions from system optimization in 2027 than previously expected.

Construction-related activities continued at Diamond Volt, the behind-the-meter power generation project at Diamond Cryo, which is expected to be in-service by mid-2027.

Conference Call & Webcast

Kinetik will host its third quarter 2026 results conference call on Thursday, November 5, 2026 at 8:00 am Central Time (9:00 am Eastern Time). To access a live webcast of the conference call, please visit the Investors section of Kinetik’s website at www.ir.kinetik.com. A replay of the conference call will be available on the website following the call.

Investor Presentation

An updated investor presentation will be available under Events and Presentations in the Investors section of the Company’s website at www.ir.kinetik.com. Information on the Company’s website does not constitute a portion of, and is not incorporated by reference into, this press release.

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, technology adoption, portfolio monetization opportunities, growth, expansion, cost reduction and other capital projects and the timing and cost thereof, future operations, financial guidance, anticipated processed gas volumes, producer activity, expected industry takeaway capacity, growth opportunities, the amount and timing of future shareholder returns, the Company’s projected dividend amounts and the timing thereof, and the Company’s targeted leverage and financial profile. 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.

Additional information

Additional information follows, including a reconciliation of Adjusted EBITDA, Distributable Cash Flow, Free Cash Flow, and Net Debt (non-GAAP financial measures) to the most directly comparable GAAP financial measures.

Non-GAAP financial measures

Kinetik’s financial information includes information prepared in conformity with generally accepted accounting principles (GAAP) as well as non-GAAP financial information. It is management’s intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP. Adjusted EBITDA, Distributable Cash Flow, Free Cash Flow, Dividend Coverage Ratio, Net Debt, Net Debt to Adjusted EBITDA Ratio, and Leverage Ratio are non-GAAP measures. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated. See “Reconciliation of GAAP to Non-GAAP Measures” elsewhere in this news release. This news release also includes certain forward-looking non-GAAP financial information. Reconciliations of these forward-looking non-GAAP measures to their most directly comparable GAAP measure are not available without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various reconciling items that would impact the most directly comparable forward-looking GAAP financial measure, that have not yet occurred, are out of Kinetik’s control and/or cannot be reasonably predicted. Accordingly, such reconciliation is excluded from this news release. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

1.	A non-GAAP financial measure. See “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Measures” for further details.
2.	Net of contributions in aid of construction, asset disposal proceeds, and returns of invested capital from unconsolidated affiliates.
3.	Dividend Coverage Ratio is Distributable Cash Flow divided by total declared dividends.
4.	Net Debt is defined as total short-term and long-term debt, excluding deferred financing costs, premiums and discounts, less cash and cash equivalents.
5.	Liquidity is calculated as cash and cash equivalents of $7.0 million plus Revolving Credit Facility availability of $1,062.4 million as of September 30, 2026.
6.	Leverage Ratio is total debt less cash and cash equivalents divided by last twelve months Adjusted EBITDA, calculated per the Company’s credit agreement. The calculation includes EBITDA Adjustments for Qualified Projects, Acquisitions and Divestitures.
7.	Net Debt to Adjusted EBITDA Ratio is defined as Net Debt divided by last twelve months Adjusted EBITDA.
8.	162.4 million shares, issued and outstanding shares as of September 30, 2026, is the sum of 80.5 million shares of Class A common stock and 81.9 million shares of Class C common stock.

KINETIK HOLDINGS INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
			2026				2025				2026				2025
		(In thousands, except per share data)
Operating revenues:
Service revenue		$	116,576			$	103,338			$	297,239			$	343,918
Product revenue			447,923				357,608				1,250,956				981,703
Other revenue			4,902				3,023				12,622				8,349
Total operating revenues			569,401				463,969				1,560,817				1,333,970
Operating costs and expenses:
Cost of sales (excluding depreciation and amortization)(1)			300,330				235,391				726,646				615,452
Operating expenses			71,634				76,137				213,857				207,785
Ad valorem taxes			7,524				7,099				24,692				20,449
General and administrative expenses			22,379				30,096				92,840				91,932
Depreciation and amortization expenses			103,803				95,409				308,967				281,845
(Gain) loss on disposal of assets, net			(7	)			50				(62	)			(15	)
Total operating costs and expenses			505,663				444,182				1,366,940				1,217,448
Operating income			63,738				19,787				193,877				116,522
Other income (expense):
Interest and other income			195				303				659				3,820
Loss on debt extinguishment			—				—				—				(635	)
Interest expense			(54,709	)			(61,721	)			(162,250	)			(173,949	)
Equity in earnings of unconsolidated affiliates			47,225				58,289				155,796				174,472
Total other income (expense), net			(7,289	)			(3,129	)			(5,795	)			3,708
Income before income taxes			56,449				16,658				188,082				120,230
Income tax expense			5,527				1,109				19,172				11,003
Net income including noncontrolling interest			50,922				15,549				168,910				109,227
Net income attributable to Common Unit limited partners			28,834				10,284				98,950				74,187
Net income attributable to holders of Class A Common Stock		$	22,088			$	5,265			$	69,960			$	35,040
Net income attributable to holders of Class A Common Stock, per share
Basic		$	0.26			$	0.03			$	0.88			$	0.41
Diluted		$	0.26			$	0.03			$	0.87			$	0.41
Weighted-average shares
Basic			79,947				61,866				73,717				61,256
Diluted			81,008				62,428				74,896				62,120

(1)

Cost of sales (exclusive of depreciation and amortization) is net of gas service revenues totaling $101.1 million and $88.3 million for the three months ended September 30, 2026 and 2025, respectively, and $314.0 million and $224.1 million for the nine months ended September 30, 2026 and 2025, respectively, for certain volumes where we act as principal.

KINETIK HOLDINGS INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES
		Three Months Ended September 30,								Nine Months Ended September 30,
			2026				2025				2026				2025
		(In thousands)
Net Income Including Noncontrolling Interests to Adjusted EBITDA
Net income including noncontrolling interest (GAAP)		$	50,922			$	15,549			$	168,910			$	109,227
Add back:
Interest expense			54,709				61,721				162,250				173,949
Income tax expense			5,527				1,109				19,172				11,003
Depreciation and amortization expenses			103,803				95,409				308,967				281,845
Amortization of contract cost assets			2,054				1,744				6,058				5,054
Proportionate EBITDA from unconsolidated affiliates			67,623				87,715				212,530				263,345
Share-based compensation			9,346				14,229				39,074				44,577
Loss on disposal of assets, net			—				50				—				—
Loss on debt extinguishment			—				—				—				635
Commodity hedging unrealized loss			27,800				6,485				25,189				—
Contingent liability fair value adjustment			—				5,700				—				5,700
Integration costs			—				6,650				368				12,621
Acquisition/divestiture transaction costs			—				812				—				812
Litigation costs			2,959				3,746				19,947				9,142
Other one-time costs or amortization			828				170				4,180				6,566
Deduct:
Interest income			195				166				659				1,274
Gain on disposal of assets, net			7				—				62				15
Commodity hedging unrealized gain			—				—				—				13,131
Equity in earnings of unconsolidated affiliates			47,225				58,289				155,796				174,472
Adjusted EBITDA(1) (non-GAAP)		$	278,144			$	242,634			$	810,128			$	735,584
Distributable Cash Flow(2)
Adjusted EBITDA (non-GAAP)		$	278,144			$	242,634			$	810,128			$	735,584
Proportionate EBITDA from unconsolidated affiliates			(67,623	)			(87,715	)			(212,530	)			(263,345	)
Returns on invested capital from unconsolidated affiliates			73,204				78,263				203,426				205,204
Interest expense			(54,709	)			(61,721	)			(162,250	)			(173,949	)
Unrealized (gain) loss on interest rate swaps			(2,790	)			779				(8,612	)			(632	)
Maintenance capital expenditures			(12,494	)			(13,752	)			(40,675	)			(34,090	)
Distributable cash flow (non-GAAP)		$	213,732			$	158,488			$	589,487			$	468,772
Free Cash Flow(3)
Distributable cash flow (non-GAAP)		$	213,732			$	158,488			$	589,487			$	468,772
Growth capital expenditures			(127,556	)			(153,625	)			(298,871	)			(342,835	)
Capitalized interest			(8,099	)			(4,449	)			(8,099	)			(12,308	)
Investments in unconsolidated affiliates			(431	)			(221	)			(431	)			(1,206	)
Returns of invested capital from unconsolidated affiliates			—				—				—				2,853
Contributions in aid of construction			9,885				13,710				12,029				17,049
Free cash flow (non-GAAP)		$	87,531			$	13,903			$	294,115			$	132,325

KINETIK HOLDINGS INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
		Nine Months Ended September 30,
			2026				2025
		(In thousands)
Reconciliation of net cash provided by operating activities to Adjusted EBITDA
Net cash provided by operating activities		$	614,387			$	494,030
Net changes in operating assets and liabilities			(2,174	)			(13,652	)
Interest expense			162,250				173,949
Amortization of deferred financing costs			(5,889	)			(5,892	)
Current income tax expense			2				509
Returns on invested capital from unconsolidated affiliates			(203,426	)			(205,204	)
Proportionate EBITDA from unconsolidated affiliates			212,530				263,345
Derivative fair value adjustment and settlement			(16,577	)			13,763
Commodity hedging unrealized loss (gain)			25,189				(13,131	)
Interest income			(659	)			(1,274	)
Integration costs			368				12,621
Acquisition/divestiture transaction costs			—				812
Litigation costs			19,947				9,142
Other one-time cost or amortization			4,180				6,566
Adjusted EBITDA(1) (non-GAAP)		$	810,128			$	735,584

		September 30,			June 30,			March 31,			December 31,
			2026			2026			2026			2025
		(In thousands)
Net Debt(4)
Short-term debt		$	225,000		$	225,000		$	187,100		$	165,200
Long-term debt, net			3,704,022			3,700,562			3,644,128			3,627,720
Plus: Debt issuance costs, net			20,978			22,438			23,872			25,280
Total debt			3,950,000			3,948,000			3,855,100			3,818,200
Less: Cash and cash equivalents			7,024			7,830			720			3,951
Net debt (non-GAAP)		$	3,942,976		$	3,940,170		$	3,854,380		$	3,814,249
(1) Adjusted EBITDA is defined as net income including noncontrolling interest adjusted for interest, taxes, depreciation and amortization, gain or loss on disposal of assets and debt extinguishment, the proportionate EBITDA from our equity method investment (“EMI”) pipelines, share-based compensation expense, noncash increases and decreases related to commodity hedging activities, integration and transaction costs and extraordinary losses and unusual or non-recurring charges. Adjusted EBITDA provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted EBITDA should not be considered as an alternative to the GAAP measure of net income including non-controlling interest or any other measure of financial performance presented in accordance with GAAP.   (2) Distributable Cash Flow is defined as Adjusted EBITDA, adjusted for the proportionate EBITDA from unconsolidated affiliates, returns on invested capital from unconsolidated affiliates, interest expense, net of amounts capitalized, unrealized gains or losses on interest rate swaps and maintenance capital expenditures. Distributable Cash Flow should not be considered as an alternative to the GAAP measure of net income including non-controlling interest or any other measure of financial performance presented in accordance with GAAP. We believe that Distributable Cash Flow is a useful measure to compare cash generation performance from period to period and to compare the cash generation performance for specific periods to the amount of cash dividends we make.   (3) Free Cash Flow is defined as Distributable Cash Flow adjusted for growth capital expenditures, investments in unconsolidated affiliates, returns of invested capital from unconsolidated affiliates, capitalized interest and contributions in aid of construction. Free Cash Flow should not be considered as an alternative to the GAAP measure of net income including non-controlling interest or any other measure of financial performance presented in accordance with GAAP. We believe that Free Cash Flow is a useful performance measure to compare cash generation performance from period to period and to compare the cash generation performance for specific periods to the amount of cash dividends that we make.   (4) Net Debt is defined as total short-term and long-term debt, excluding deferred financing costs, premiums and discounts, less cash and cash equivalents. Net Debt illustrates our total debt position less cash on hand that could be utilized to pay down debt at the balance sheet date. Net Debt should not be considered as an alternative to the GAAP measure of total long-term debt, or any other measure of financial performance presented in accordance with GAAP.

KINETIK HOLDINGS INC. RESULTS OF OPERATIONS BY SEGMENT   The following tables present the Segment Adjusted EBITDA of the Company’s reportable segments and reconciliations of the segment profits to consolidated income before income tax expenses for the three and nine months ended September 30, 2026 and 2025:
		Midstream Logistics				Pipeline Transportation				Corporate and Other(1)				Elimination				Consolidated
For the Three Months Ended September 30, 2026		(In thousands)
Revenue		$	561,866			$	2,633			$	—			$	—			$	564,499
Other revenue			2,643				2,259				—				—				4,902
Intersegment revenue(2)			—				6,706				—				(6,706	)			—
Total segment operating revenue			564,509				11,598				—				(6,706	)			569,401
Cost of sales (excluding depreciation and amortization expenses)			(300,536	)			206				—				—				(300,330	)
Intersegment cost of sales			(6,706	)			—				—				6,706				—
Operating expenses(3)			(78,443	)			(715	)			—				—				(79,158	)
General and administrative expenses			(5,847	)			(201	)			(16,331	)			—				(22,379	)
Proportionate EMI EBITDA			—				67,623				—				—				67,623
Other segment items(4)			30,594				—				12,393				—				42,987
Segment Adjusted EBITDA(5)		$	203,571			$	78,511			$	(3,938	)		$	—			$	278,144
Reconciliation of Segment Adjusted EBITDA to income before income taxes
Segment Adjusted EBITDA(5)		$	203,571			$	78,511			$	(3,938	)		$	—			$	278,144
Add back:
Other interest income			—				—				195				—				195
Gain on disposal of assets, net			7				—				—				—				7
Equity in earnings of unconsolidated affiliates			—				47,225				—				—				47,225
Deduct:
Interest expense			—				—				54,709				—				54,709
Depreciation and amortization expenses			101,460				2,337				6				—				103,803
Amortization of contract cost assets			2,054				—				—				—				2,054
Proportionate EMI EBITDA			—				67,623				—				—				67,623
Share-based compensation			—				—				9,346				—				9,346
Commodity hedging unrealized loss			27,800				—				—				—				27,800
Litigation costs			—				—				2,959				—				2,959
Other one-time costs or amortization			740				—				88				—				828
Income (loss) before income taxes		$	71,524			$	55,776			$	(70,851	)		$	—			$	56,449

		Midstream Logistics				Pipeline Transportation				Corporate and Other(1)				Elimination				Consolidated
For the Three Months Ended September 30, 2025		(In thousands)
Revenue		$	458,621			$	2,325			$	—			$	—			$	460,946
Other Revenue			3,021				2				—				—				3,023
Intersegment revenue(2)			—				5,793				—				(5,793	)			—
Total segment operating revenue			461,642				8,120				—				(5,793	)			463,969
Cost of sales (excluding depreciation and amortization expenses)			(236,001	)			610				—				—				(235,391	)
Intersegment cost of sales			(5,793	)			—				—				5,793				—
Operating expenses(3)			(82,486	)			(750	)			—				—				(83,236	)
General and administrative expenses			(6,610	)			(241	)			(23,245	)			—				(30,096	)
Proportionate EMI EBITDA			—				87,715				—				—				87,715
Other segment items(4)			20,606				—				19,067				—				39,673
Segment Adjusted EBITDA(5)		$	151,358			$	95,454			$	(4,178	)		$	—			$	242,634
Reconciliation of Segment Adjusted EBITDA to income before income taxes
Segment adjusted EBITDA(5)		$	151,358			$	95,454			$	(4,178	)		$	—			$	242,634
Add back:
Other interest income			—				—				166				—				166
Equity in earnings of unconsolidated affiliates			—				58,289				—				—				58,289
Deduct:
Interest expense			37				—				61,684				—				61,721
Depreciation and amortization expenses			93,095				2,308				6				—				95,409
Amortization of contract cost assets			1,744				—				—				—				1,744
Proportionate EMI EBITDA			—				87,715				—				—				87,715
Share-based compensation			—				—				14,229				—				14,229
Loss on disposal of assets, net			50				—				—				—				50
Commodity hedging unrealized loss			6,485				—				—				—				6,485
Contingent liability fair value adjustment			5,700				—				—				—				5,700
Integration costs			6,552				—				98				—				6,650
Acquisition/divestiture transaction costs			—				—				812				—				812
Litigation costs			—				—				3,746				—				3,746
Other one-time costs or amortization			(12	)			—				182				—				170
Income (loss) before income taxes		$	37,707			$	63,720			$	(84,769	)		$	—			$	16,658

		Midstream Logistics				Pipeline Transportation				Corporate and Other(1)				Elimination				Consolidated
For the Nine Months Ended September 30, 2026		(In thousands)
Revenue		$	1,541,185			$	7,010			$	—			$	—			$	1,548,195
Other revenue			10,342				2,280				—				—				12,622
Intersegment revenue(2)			—				20,086				—				(20,086	)			—
Total segment operating revenue			1,551,527				29,376				—				(20,086	)			1,560,817
Cost of sales (excluding depreciation and amortization expenses)			(727,210	)			564				—				—				(726,646	)
Intersegment cost of sales			(20,086	)			—				—				20,086				—
Operating expenses(3)			(236,257	)			(2,292	)			—				—				(238,549	)
General and administrative expenses			(15,865	)			(691	)			(76,284	)			—				(92,840	)
Proportionate EMI EBITDA			—				212,530				—				—				212,530
Other segment items(4)			35,150				—				59,666				—				94,816
Segment Adjusted EBITDA(5)		$	587,259			$	239,487			$	(16,618	)		$	—			$	810,128
Reconciliation of Segment Adjusted EBITDA to income before income taxes
Segment adjusted EBITDA(5)		$	587,259			$	239,487			$	(16,618	)		$	—			$	810,128
Add back:
Other interest income			—				—				659				—				659
Gain on disposal of assets			62				—				—				—				62
Equity income from unconsolidated affiliates			—				155,796				—				—				155,796
Deduct:
Interest expense			103				—				162,147				—				162,250
Depreciation and amortization expenses			301,953				6,997				17				—				308,967
Amortization of contract cost assets			6,058				—				—				—				6,058
Proportionate EMI EBITDA			—				212,530				—				—				212,530
Share-based compensation			—				—				39,074				—				39,074
Commodity hedging unrealized loss			25,189				—				—				—				25,189
Integration costs			—				—				368				—				368
Litigation costs			—				—				19,947				—				19,947
Other one-time costs or amortization			3,903				—				277				—				4,180
Income (loss) before income taxes		$	250,115			$	175,756			$	(237,789	)		$	—			$	188,082

		Midstream Logistics				Pipeline Transportation				Corporate and Other(1)				Elimination				Consolidated
For the Nine Months Ended September 30, 2025		(In thousands)
Revenue		$	1,318,459			$	7,162			$	—			$	—			$	1,325,621
Other revenue			8,343				6				—				—				8,349
Intersegment revenue(2)			—				18,271				—				(18,271	)			—
Total segment operating revenue			1,326,802				25,439				—				(18,271	)			1,333,970
Cost of sales (excluding depreciation and amortization expenses)			(615,624	)			172				—				—				(615,452	)
Intersegment cost of sales			(18,271	)			—				—				18,271				—
Operating expenses(3)			(226,283	)			(1,951	)			—				—				(228,234	)
General and administrative expenses			(18,731	)			(901	)			(72,300	)			—				(91,932	)
Proportionate EMI EBITDA			—				263,345				—				—				263,345
Other segment items(4)			14,870				—				59,017				—				73,887
Segment Adjusted EBITDA(5)		$	462,763			$	286,104			$	(13,283	)		$	—			$	735,584
Reconciliation of Segment Adjusted EBITDA to income before income taxes
Segment adjusted EBITDA(5)		$	462,763			$	286,104			$	(13,283	)		$	—			$	735,584
Add back:
Other interest income			—				—				1,274				—				1,274
Gain on disposal of assets, net			15				—				—				—				15
Equity income from unconsolidated affiliates			—				174,472				—				—				174,472
Commodity hedging unrealized gain			13,131				—				—				—				13,131
Deduct:
Interest expense			97				—				173,852				—				173,949
Depreciation and amortization expenses			274,903				6,924				18				—				281,845
Amortization of contract cost assets			5,054				—				—				—				5,054
Proportionate EMI EBITDA			—				263,345				—				—				263,345
Share-based compensation			—				—				44,577				—				44,577
Loss on debt extinguishment			—				—				635				—				635
Contingent liability fair value adjustment			5,700				—				—				—				5,700
Integration costs			10,999				—				1,622				—				12,621
Acquisition/divestiture transaction costs			—				—				812				—				812
Litigation costs			—				—				9,142				—				9,142
Other one-time costs or amortization			3,702				—				2,864				—				6,566
Income (loss) before income taxes		$	175,454			$	190,307			$	(245,531	)		$	—			$	120,230

(1)		Corporate and Other represents those results that: (i) are not specifically attributable to an operating segment; (ii) are not individually reportable or (iii) have not been allocated to a reportable segment for the purpose of evaluating their performance, including certain general and administrative expense items. Items are included here to reconcile the operating segments’ profit and loss with the Company’s consolidated results.
(2)		The Company accounts for intersegment sales at market prices, while it accounts for asset transfers at book value. Intersegment revenue is eliminated at consolidation.
(3)		Operating expenses includes ad valorem taxes.
(4)		Other segment items include certain other income items, share-based compensation, adjustments related to amortization of contract costs, commodity hedging unrealized gain or loss, integration costs, litigation costs and other one-time costs or amortization.
(5)		Adjusted EBITDA is defined as net income or loss including noncontrolling interest adjusted for interest, taxes, depreciation and amortization, gain or loss on disposal of assets and debt extinguishment, the proportionate EBITDA from our EMI pipelines, share-based compensation expense, noncash increases and decreases related to commodity hedging activities, integration and transaction costs and extraordinary losses and unusual or non-recurring charges. Adjusted EBITDA provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted EBITDA should not be considered as an alternative to the GAAP measure of net income including non-controlling interest or any other measure of financial performance presented in accordance with GAAP.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261104064606/en/

Investor Contact

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

Source: Kinetik Holdings Inc.

Key Terms

final investment decision technical

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.

acid gas injection technical

Acid gas injection is a process that pumps acidic gases (such as hydrogen sulfide or carbon dioxide) into deep, sealed rock formations underground for long‑term storage or to support oil and gas production. Investors care because it reduces surface emissions and regulatory liability but requires permits, ongoing monitoring and capital expenditure; like putting hazardous waste into a locked vault, it lowers environmental risk while creating operational and financial commitments.

non-gaap financial measure financial

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

minimum volume commitment financial

A minimum volume commitment is a promise by a buyer, underwriter or market maker to trade or buy at least a specified number of shares or securities over a set period. It matters to investors because it guarantees a baseline level of demand and liquidity—similar to a store agreeing to buy a minimum stock of a product—reducing the chance of thin trading, big price swings, or difficulty selling holdings.