Kinetik Holdings Inc

Latest Results (19.05.2026):

Kinetik Holdings Inc. reported results for the quarter ended December 31, 2025 (Q4 2025). The company delivered Q4 net income including noncontrolling interest of $416.7 million and record full‑year Adjusted EBITDA of $987.7 million, with Q4 Adjusted EBITDA of $252.1 million and Q4 Distributable Cash Flow of $151.7 million.

Key financials (Q4 2025 / FY 2025)

Q4 2025 net income including noncontrolling interest was $416.7 million (FY 2025: $525.9 million). Adjusted EBITDA was $252.1 million for Q4 and $987.7 million for the full year (a company record). Distributable Cash Flow was $151.7 million in Q4 and $620.5 million for 2025. Free Cash Flow was negative $12.0 million in Q4 and $167.2 million for the year. Capital expenditures were $138.9 million in Q4 and $497.1 million for the year.

Segments and operational metrics

The Midstream Logistics segment produced Q4 Adjusted EBITDA of $173.1 million (up 15% YoY) and processed 1.79 Bcf/d of natural gas in Q4 (+3% YoY). Pipeline Transportation Adjusted EBITDA was $84.0 million in Q4 (down 9% YoY), impacted by the October 31, 2025 divestiture of the company’s equity interest in EPIC Crude; the gain on that sale was $415.4 million recorded in other income in Q4.

Cash, leverage and capital returns

As of December 31, 2025, Net Debt was $3.814 billion with a Leverage Ratio target cited in the release at 3.8x (Net Debt / Adjusted EBITDA ~3.9x). Dividend Coverage was 1.2x for Q4 and full year. Kinetik repurchased $176.0 million of Class A common stock in 2025 (including $3.5 million in Q4).

Drivers of Q4 cash flow variation

Q4 Distributable Cash Flow and Free Cash Flow were reduced partly by a $31.3 million decrease in distributions received from Permian Highway Pipeline (PHP) due to a timing change that pushed the distribution into January 2026; management states this timing change has no other impact.

2026 guidance and outlook

Kinetik issued full‑year 2026 guidance: Adjusted EBITDA $950 million to $1,050 million (midpoint ≈ +7% YoY) and Capital Expenditures $450 million to $510 million (including maintenance). The guidance assumptions include mid‑single digit to high single‑digit gas volume growth, ECCC Pipeline in‑service in Q2 2026, Kings Landing AGI/sour conversion by year‑end 2026, and specified commodity price assumptions.

Strategic projects and commercial progress

The company highlighted amended long‑term G&P contracts in New Mexico with legacy Durango customers that increase 2026 Adjusted EBITDA and extend terms into the mid‑2030s, FID on a 40 MW behind‑the‑meter gas‑fired power project at Diamond Cryo, ongoing construction of the ECCC Pipeline, and advancement of Kings Landing AGI and sour conversion (target in‑service by year‑end 2026).

Capital allocation priorities

Kinetik updated its capital allocation framework to prioritize growth‑oriented reinvestment while preserving flexibility. Targets include maintaining leverage in a 3.5x–4.0x range, opportunistic share repurchases, and modest dividend increases (targeting 3%–5% annual increases until Dividend Coverage reaches ~1.6x, after which dividends are expected to grow with earnings).