KNTK · Kinetik Holdings Inc.

Kinetik Holdings Inc. delivered record first quarter 2026 financial results with Adjusted EBITDA of $251.2 million, surpassing internal expectations and marking a new quarterly high after accounting for the EPIC Crude divestiture. This performance was propelled by robust system operating efficiency, elevated fee and commodity margins, reduced unit operating costs, and expanded Waha to Houston Ship Channel basis spreads in the Midstream Logistics segment, which saw a 12% year-over-year Adjusted EBITDA increase to $178.9 million on 1.81 Bcf/d processed gas volumes despite 170 Mmcf/d of Waha price-related shut-ins. The Pipeline Transportation segment reported $78.0 million in Adjusted EBITDA, down 17% year-over-year primarily due to the divestiture, though Permian Highway Pipeline and Kinetik NGL showed modest growth from lower fuel costs and higher fee margins. CEO Jamie Welch highlighted the company's fee-based model insulating it from commodity volatility, with commercial wins like Durango contract amendments extending 75% of legacy volumes into the 2030s, adding acreage and sour services to boost future EBITDA. Strategic projects including Kings Landing acid gas injection (in-service year-end 2026) and ECCC Pipeline (Q2 2026) advance operational capacity. Amid Waha Hub oversupply averaging negative $2.37/MMBtu through April, Kinetik revised processed gas volume growth to low-to-mid single digits but affirmed full-year Adjusted EBITDA guidance of $950-$1,050 million and Capex of $450-$510 million, supported by Gulf Coast pricing hedges through 2030 and Permian egress expansions.