UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 001-38048 KINETIK HOLDINGS INC. (Exact name of registrant as specified in its charter) (State or other jurisdict ...

Kinetik (KNTK) Q2 2025 Earnings Call August 07, 2025 09:00 AM ET Company ParticipantsAlex Durkee - Director - IRJamie Welch - CEO, President & DirectorTrevor Howard - SVP & CFOSpiro Dounis - DirectorKris Kindrick - SVP - CommercialMichael Blum - Managing DirectorBrandon Bingham - Associate Director - US Equity ResearchKeith Stanley - DirectorSaumya Jain - Equity Research AssociateConference Call ParticipantsJeremy Tonet - MD & Research AnalystTheresa Chen - Senior Analyst - Midstream & Refining Equity Resea ...

Kinetik (KNTK) Q2 2025 Earnings Call August 07, 2025 09:00 AM ET Speaker0Good morning all, and thank you for joining us for the Kinesics second quarter twenty twenty five My name is Carly and I'll be coordinating the call today. I'd now like to hand over to our host, Alex Durkey. The floor is yours.Speaker1Thank you. Good morning, and welcome to Kinetic's second quarter twenty twenty five earnings conference call. Our speakers today are Jamie Welch, President and Chief Executive Officer and Trevor Howard, S ...

Second Quarter 2025 Results August 6, 2025 Forward looking statements This presentation 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 or other characterizations of future events or circumstances, including any underlying assumptions. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may, ...

分组1 - Kinetik Holdings Inc. reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, but down from $0.54 per share a year ago, resulting in an earnings surprise of +135.71% [1] - The company posted revenues of $426.74 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 29.85%, compared to revenues of $359.46 million a year ago [2] - Kinetik Holdings has surpassed consensus EPS estimates only once in the last four quarters, indicating inconsistent performance [2] 分组2 - The stock has underperformed the market, losing about 25.7% since the beginning of the year, while the S&P 500 gained 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.34 on revenues of $689.08 million, and for the current fiscal year, it is $0.56 on revenues of $2.57 billion [7] - The Oil and Gas - Field Services industry, to which Kinetik belongs, is currently in the bottom 8% of the Zacks Industry Rank, suggesting a challenging environment for the stock [8]

Kinetik Reports Second Quarter 2025 Financial and Operating Results and Updates Full Year 2025 Guidance HOUSTON and MIDLAND, Texas, August 6, 2025 – Kinetik Holdings Inc. (NYSE: KNTK) ("Kinetik" or the "Company") today reported financial results for the quarter ended June 30, 2025. Second Quarter 2025 Results and Commentary For the three and six months ended June 30, 2025, Kinetik reported net income including noncontrolling interest of $74.4 million and $93.7 million, respectively. Kinetik generated Adjust ...

Group 1 - Kinetik Holdings Inc. (NYSE: KNTK) is a mid-cap midstream provider based in the Delaware basin [1] - The company's stock price has faced significant pressure since Liberation Day, indicating potential market volatility [1] - The advantages of owning a highly contracted midstream company are being questioned in the current market environment [1] Group 2 - The author has a beneficial long position in KNTK shares, indicating a personal investment interest [2] - The article reflects the author's opinions and is not influenced by external compensation [2]

Kinetik Holdings Inc. (NYSE: KNTK ) Midstream sector company in the US Permian Basin. The company is collecting, processing, and transporting natural gas, oil, and NGL. Recent months have shown a stable financial situation, rapid cash flow growth, and dividends that indicate the company is matureI am a passionate investor and financial advisor with a strong focus on equity markets, particularly growth and small-cap stocks. With a background in finance and upcoming master’s degree in the field, I combine pra ...

Financial Performance - Total operating revenues for Q1 2025 reached $443.3 million, a 30% increase from $341.4 million in Q1 2024[15] - Service revenue increased to $127.9 million, up 25% from $102.2 million year-over-year[15] - Product revenue rose to $312.5 million, representing a 32% increase compared to $236.6 million in the same period last year[15] - Operating income decreased to $19.3 million, down 26% from $26.1 million in Q1 2024[15] - Net income attributable to Class A Common Stock Shareholders was $6.1 million, a decline of 47% from $11.6 million in Q1 2024[15] - Net income including noncontrolling interest decreased by 46% to $19.3 million compared to $35.4 million for the same period in 2024[140] - Adjusted EBITDA increased by $16.5 million, or 7%, to $250.0 million for the three months ended March 31, 2025, compared to $233.6 million for the same period in 2024[154] Cash and Assets - Cash and cash equivalents increased to $8.8 million, up from $3.6 million at the end of 2024[18] - Total assets grew to $7.0 billion, an increase from $6.8 billion at the end of 2024[18] - Total long-term debt as of March 31, 2025, was $3,595.0 million, an increase from $3,390.0 million as of December 31, 2024[61] - The Company had available committed borrowing capacity of $693.6 million as of March 31, 2025, compared to $657.2 million at the end of 2024[180] Investments and Acquisitions - The Durango Acquisition, completed on June 24, 2024, had an adjusted purchase price of approximately $785.7 million, allowing the company to expand its footprint into New Mexico and the Northern Delaware Basin[42] - The company completed the Barilla Draw Acquisition for a total of $194.1 million, enhancing its natural gas and crude gathering capabilities[136] - The company plans to issue 7.7 million shares of Class C Common Stock as deferred consideration on July 1, 2025[25] Debt and Interest - Interest expense increased by $8.2 million, or 17%, to $55.7 million, primarily due to decreased gains on interest rate swaps[148] - The fair value of the Company's consolidated debt was $3.74 billion as of March 31, 2025, up from $3.52 billion as of December 31, 2024[69] - A 1.0% increase in interest rates would result in an annualized interest expense change of approximately $16.9 million based on outstanding borrowings[186] Revenue Segments - Total segment operating revenue for the Midstream Logistics segment was $440.86 million, contributing to a consolidated revenue of $443.26 million for the three months ended March 31, 2025[115] - For the three months ended March 31, 2025, the Company reported revenues of $128.3 million from Permian Highway, $59.5 million from Breviloba, and $102.4 million from EPIC, compared to $126.2 million, $50.9 million, and $84.1 million respectively in the same period of 2024[58] Expenses - Cost of sales (excluding depreciation and amortization) increased by $69.7 million, or 45%, to $223.4 million, driven by higher NGL and condensate volumes sold[145] - Operating expenses rose by $20.2 million, or 47%, to $63.6 million, with significant contributions from the Durango and Barilla Draw acquisitions[146] - Depreciation and amortization expenses increased by $19.1 million, or 26%, to $92.7 million, largely due to the Durango and Barilla Draw acquisitions[147] Equity and Dividends - Common Unit limited partners received distributions totaling $70.52 million during the period[24] - Kinetik Holdings Inc. declared dividends on Class A Common Stock at a rate of $0.75 per share, amounting to $43.20 million[24] - During the quarter ended March 31, 2025, the Company made cash dividend payments of $123.2 million, with $0.4 million reinvested in shares of Class A Common Stock[74] Market and Economic Conditions - The annual inflation rate in the U.S. was 2.4% as of March 2025, with the Federal Open Market Committee maintaining the federal funds rate target range at 4.25% - 4.50%[139] - The U.S. government imposed a 25% tariff on steel imports on March 12, 2025, which may adversely affect the Company's construction costs[196] Strategic Initiatives - Kinetik Holdings provided an optimistic outlook, projecting a revenue growth of 10-12% for the next quarter[212] - The company is investing in new product development, with a budget allocation of $30 million for R&D in the upcoming fiscal year[212] - Kinetik is expanding its market presence, targeting a 25% increase in market share through strategic partnerships and acquisitions[212] - Kinetik is implementing new sustainability initiatives, including the issuance of 6.625% Sustainability-Linked Senior Notes to fund green projects[212] - The company emphasized the importance of technology upgrades, with a focus on enhancing user experience and operational efficiency[212]

Financial Data and Key Metrics Changes - Kinetic reported first quarter adjusted EBITDA of $250 million, a 7% year-over-year increase driven by process gas volume growth and margin expansion in the Midstream Logistics segment [7][14] - Distributable cash flow was $157 million, and free cash flow reached $120 million [14] - The company affirmed full-year adjusted EBITDA guidance of $1.09 billion to $1.15 billion, expecting a meaningful acceleration in adjusted EBITDA growth during the second half of the year [16][17] Business Line Data and Key Metrics Changes - The Midstream Logistics segment generated adjusted EBITDA of $159 million, up 11% year-over-year due to increased process gas volumes and margin expansion from Northern Delaware assets [14] - The Pipeline Transportation segment reported adjusted EBITDA of $94 million, down 2% year-over-year, primarily due to the absence of contributions from Gulf Coast Express following the sale of equity interest [16] Market Data and Key Metrics Changes - Kinetic's operations are primarily focused on the Permian Basin, which is expected to remain resilient despite macroeconomic challenges [9][10] - The company anticipates over 1 billion cubic feet per day of gas growth per year, even if Permian crude production remains flat [10] Company Strategy and Development Direction - Kinetic is focused on providing flow assurance and operational reliability to producer customers, with a strong emphasis on organic and inorganic growth opportunities [10][12] - The company announced a $500 million share repurchase program, reflecting management's confidence in Kinetic's value proposition [13][21] - Future capital expenditures are expected to be discretionary and flexible, with less than $50 million of committed growth capital in 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged elevated volatility and macroeconomic uncertainty but expressed confidence in Kinetic's ability to navigate these challenges [7][20] - The company is seeing some indirect impacts of lower commodity prices, leading to adjustments in gas process volume growth assumptions from approximately 20% to high teens growth [18][19] - Management remains optimistic about the long-term growth outlook, projecting a 10% compound annual growth rate through 2029 [23][26] Other Important Information - Kinetic has made substantial progress on strategic projects, including the commissioning of the King's Landing complex [7][19] - The company has a strong hedging strategy, with approximately 83% of expected gross profit sourced from fixed fee agreements [17][18] Q&A Session Summary Question: Long-term growth drivers - Management highlighted that the 10% compound annual growth rate is supported by contractual resets and growth in New Mexico, with a focus on operational efficiency [23][26] Question: Capital allocation and buybacks - Management confirmed a flexible approach to capital allocation, emphasizing the value seen in the current share price and the potential for M&A opportunities [28][30] Question: Macro environment and CapEx adjustments - Management indicated that further production cuts could lead to adjustments in capital expenditures, but emphasized a customer-specific approach to decision-making [49][52] Question: Commodity exposure and hedging - Management stated that approximately 83% of gross profit is fee-based, with plans to continue hedging against commodity price fluctuations [61][63] Question: Performance of acquired assets - The Barilla Draw acquisition has exceeded expectations, with significant activity anticipated in the coming years [105][106]