Kinetik Holdings Stock Earnings Reports

Kinetik reported a record first quarter driven by strong commercial execution, operational reliability and financial discipline. Key results: adjusted EBITDA of $251 million (record), distributable cash flow of $181 million, free cash flow of $101 million, and leverage of 3.9x. Commercial highlights include multiple contract amendments to legacy Durango agreements (one amendment expanded dedicated acreage ~25% and extended term to 2039), ~75% of legacy Durango gas processing volumes amended in recent months, and new zero-CapEx interconnection with Pecos Power (monetizing residue gas for in-basin power). Operationally, the ECCC pipeline is near completion (in-service later this quarter), King’s Landing sour conversion / AGI has full approvals, construction underway, first AGI well spud planned for summer, and Phase 1 sour conversion on track for year-end 2026 (total TAG capacity ~26.5 MMcf/d; permitted >31 MMcf/d). Financially, management affirmed 2026 adjusted EBITDA guidance of $950 million to $1.05 billion despite revising processed gas volume growth down to low- to mid-single-digit % y/y due to higher-than-expected price-related curtailments (~220 MMcf/d average for 2026 vs. the 100 MMcf/d assumed earlier). Gulf Coast takeaway capacity contracted late last year materially offset Waha-related shut-ins via spread-based marketing gains; commodity price moves (WTI +30% since prior strip, NGL composite & propane +20%) and additional hedges imply ~+$20 million uplift to 2026 adjusted EBITDA at current forwards (excluding Gulf Coast marketing). 2026 CapEx guidance remains $450–510 million (Q1 spend $91 million), with ~70% of budgeted New Mexico-focused. Management is pursuing cost and operating efficiencies (Palantir pilot underway) and continues to prioritize disciplined commercial conversion, reliable operations, and conservative financial stewardship, positioning the company for multi-year durability as broader Permian residue-gas takeaway capacity ramps in 2027–2029.