0001692787-26-000092
SEC filingKinetik reported a $410.0M revenue decline of 7.5% year-over-year and a swing to operating and net losses, driven by lower gas service revenues under the agent model and elevated legal costs — while operating cash flow remained resilient at $180.4M and free cash flow totaled $97.4M.
Revenue decreased 7.5% to $410.0M compared to $443.3M in Q1 FY2025. This decline was primarily driven by lower gas service revenues on gathered gas volumes where Kinetik functions as an agent versus principal — a structural shift affecting revenue recognition without corresponding changes in physical throughput.
Operating income declined to a loss of $3.8M from $19.3M in the prior-year quarter, representing a 119.9% year-over-year decrease. The increase in legal fees was a primary driver of this deterioration, partially offset by a decrease in labor and professional fees. Net income followed a similar trajectory, falling to a loss of $1.7M from $19.3M, resulting in diluted EPS of $-0.07 versus $0.05 in Q1 FY2025. These results reflect GAAP accounting outcomes without inclusion of non-GAAP adjustments or reconciliations not present in the authoritative financial packet.
Net cash provided by operating activities totaled $180.4M, up modestly from $176.8M in Q1 FY2025. Capital expenditures increased to $83.0M from $74.5M, reflecting ongoing investment in infrastructure. Free cash flow — defined as operating cash flow less capital expenditures — was $97.4M. This level of free cash flow supports the Company’s capital-intensive operations, including construction and maintenance of gathering, processing, and EMI pipeline assets.