Financial Data and Key Metrics Changes - In Q4 2025, the company reported adjusted EBITDA of $252 million, with distributable cash flow of $152 million and free cash flow of -$12 million [13] - For the full year, adjusted EBITDA was $988 million, slightly above the midpoint of revised guidance, with capital expenditures of $497 million [14] - The company expects 2026 adjusted EBITDA to be between $950 million and $1.05 billion, representing over 7% growth year-over-year when adjusting for the sale of EPIC Crude [15][17] Business Line Data and Key Metrics Changes - Midstream logistics delivered $173 million of adjusted EBITDA, up 15% year-over-year, driven by gas volume growth and Gulf Coast marketing gains [13] - Pipeline transportation generated $84 million of adjusted EBITDA, down year-over-year due to the EPIC Crude divestiture [13] - The company amended gas gathering and processing agreements with its two largest legacy customers, enhancing long-term cash flow visibility and increasing expected EBITDA beginning in 2026 [7] Market Data and Key Metrics Changes - Permian natural gas production is expected to grow nearly 4% annually through 2030, supported by rising gas-to-oil ratios and attractive gas-rich plays [9] - The company anticipates Waha gas price volatility during pipeline maintenance seasons, but takeaway gas pipeline utilization near 90% should provide pricing relief [10] - The U.S. Gulf Coast remains the most attractive natural gas demand story globally, with LNG capacity expansions expected to increase gas demand by nearly 12 billion cubic feet per day through 2030 [10] Company Strategy and Development Direction - The company aims to restore investor confidence in 2026 by meeting or exceeding financial estimates, tightening operating cost discipline, and delivering projects on time and on budget [11] - The capital allocation framework has shifted to a growth-oriented model, focusing on high-return projects and increasing capital returns to shareholders through annual dividend increases [18] - The company is strategically positioned at the crossroads of rising low-cost natural gas supply and growing demand along the U.S. Gulf Coast [8] Management's Comments on Operating Environment and Future Outlook - The management acknowledged that 2025 was a challenging year due to commodity price volatility and macroeconomic uncertainty, but they managed to deliver year-over-year EBITDA growth [4] - The management expressed renewed confidence heading into 2026, citing the restructuring of key contracts and increased commercial activity in the Northern Delaware [22][23] - The company is optimistic about the growth trajectory, with expectations of high single-digit growth in processed gas volumes across the system [15][39] Other Important Information - The company achieved full commercial in-service at Kings Landing, which doubled processing capacity in Delaware North and is performing exceptionally well [5] - The company reached FID on the Kings Landing sour gas conversion project, expected to be in service by year-end 2026, increasing total permitted acid gas injection capacity [5] - The company plans to increase dividends annually by 3%-5% until dividend coverage reaches 1.6 times [19] Q&A Session Summary Question: What is the outlook for 2026 and the renewed confidence? - Management highlighted the successful restructuring of contracts and increased commercial activity as key factors for renewed confidence heading into 2026 [22][23] Question: How does the company view growth beyond 2026? - Management indicated that they expect growth to be above average, with significant opportunities arising from new egress projects and deeper zone developments [25][81] Question: Can you provide details on curtailments and volume guidance? - Management noted that they had 170 million cubic feet a day of curtailments in Q4 2025, with expectations of about 100 million cubic feet a day of curtailments for 2026 [36][39] Question: What is the status of Kings Landing 2? - Management confirmed that they are progressing with commercial negotiations for Kings Landing 2 and expect to make an announcement in 2026 [41][42] Question: How is the company managing Waha price volatility? - Management mentioned securing additional Gulf Coast capacity and restructuring contracts to mitigate the impact of Waha price volatility [66][68] Question: What is the company's approach to strategic interest and M&A? - Management stated they are open to evaluating opportunities that maximize shareholder value but will not comment on specific market rumors [70]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported adjusted EBITDA of $252 million, with full-year adjusted EBITDA at $988 million, slightly above the midpoint of revised guidance [13][14] - Distributable cash flow for Q4 was $152 million, while free cash flow was -$12 million [13] - Capital expenditures for the full year were $497 million, in line with revised guidance, and the company repurchased $176 million of Class A common stock [14] Business Line Data and Key Metrics Changes - Midstream logistics delivered $173 million of adjusted EBITDA, up 15% year-over-year, driven by gas volume growth and Gulf Coast marketing gains [13] - Pipeline transportation generated $84 million of adjusted EBITDA, down year-over-year due to the EPIC Crude divestiture [13] - The company expects adjusted EBITDA for 2026 to be between $950 million and $1.05 billion, representing over 7% growth year-over-year when adjusting for the sale of EPIC Crude [15] Market Data and Key Metrics Changes - Permian natural gas production is expected to grow nearly 4% annually through 2030, supported by rising gas-to-oil ratios and attractive gas-rich plays [9] - The company anticipates Waha gas price volatility during pipeline maintenance seasons, but takeaway gas pipeline utilization near 90% should provide pricing relief [10] - The U.S. Gulf Coast remains the most attractive natural gas demand story globally, with LNG capacity expansions expected to increase gas demand by nearly 12 billion cubic feet per day through 2030 [10] Company Strategy and Development Direction - The company aims to restore investor confidence in 2026 through consistent execution, disciplined capital allocation, and transparent communication [4] - A focus on reducing operating costs and enhancing profitability is a key strategy moving forward [6] - The company has shifted to a growth-oriented capital allocation framework, targeting leverage between 3.5 and 4 times while planning to increase dividends annually by 3%-5% until dividend coverage reaches 1.6 times [18][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2025 as a challenging year due to commodity price volatility and macroeconomic uncertainty but highlighted strategic progress and foundational initiatives [4] - The company is optimistic about the growth potential in 2026, driven by the restructuring of contracts and increased commercial activity in the Northern Delaware Basin [22][23] - Management expressed confidence in the long-term growth trajectory, emphasizing the importance of operational reliability and partnerships with producers [87][88] Other Important Information - The company achieved full commercial in-service at Kings Landing, doubling processing capacity in Delaware North, and is progressing on the Kings Landing sour gas conversion project [5][6] - The ECCC pipeline is on schedule for in-service next quarter, providing additional growth opportunities [6] - The company has executed long-term agreements with CPV and INEOS, demonstrating its ability to create differentiated pricing solutions [8] Q&A Session Summary Question: What is giving the company renewed confidence heading into 2026? - Management highlighted the successful restructuring of contracts and increased commercial activity in the Northern Delaware, which opens up significant opportunities [22][23] Question: How does the company view growth beyond 2026? - Management indicated a strong setup for growth, with expectations of significant contributions from new egress projects coming online [25][28] Question: Can you provide details on curtailment volumes and expectations for 2026? - The company experienced 170 million cubic feet a day of curtailments in Q4 2025, with expectations of about 100 million cubic feet a day of curtailments for 2026 [36][38] Question: What is the status of Kings Landing 2? - Management confirmed ongoing commercial negotiations and anticipates an announcement regarding Kings Landing 2 in 2026 [41][42] Question: How is the company managing around Waha price volatility? - The company secured additional Gulf Coast capacity and restructured contracts to mitigate the impact of shut-ins [66][68] Question: What is the company's approach to inbound strategic interest? - Management stated they are always willing to evaluate opportunities that maximize shareholder value [70]

Financial Data and Key Metrics Changes - The second quarter of 2025 marked the highest adjusted EBITDA in the partnership's history, indicating a successful operational performance [2] - Operationally, there was increased throughput across all product lines and large operated basins, contributing to the rise in adjusted EBITDA and adjusted gross margin [2][3] - Operating expenses (OpEx) remained relatively flat compared to Q1, with ongoing internal cost optimization efforts expected to yield further improvements in the latter half of the year [3][4] Business Line Data and Key Metrics Changes - The Delaware Basin achieved record oil, gas, and water throughput, significantly contributing to the overall increase in adjusted EBITDA [3] - Expectations for throughput growth rates for the remainder of the year include mid-single digits for gas, low-single digits for crude oil, and mid-single digits for water [4] Market Data and Key Metrics Changes - The company is experiencing strong support from existing agreements, providing insight into producers' activities and long-term forecasts, which bolstered confidence in sanctioning new projects [5][6] Company Strategy and Development Direction - The company sanctioned a second train at the North Loving plant, expected to come online in 2027, driven by strong existing agreements and successful organic development of the system [5][6] - The capital budget for 2026 is projected to be at least $1.1 billion, with significant spending allocated to new projects like Pathfinder and North Loving 2, which are expected to drive growth [9][10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term delivery of existing contract structures and the organic success seen over the past 12 to 18 months, particularly in gas gathering and processing contracts [6][8] - The company remains focused on executing infrastructure development, with the Pathfinder pipeline project on track to be operational in 2027 [8] Other Important Information - The majority of the capital expenditures for Pathfinder and North Loving 2 will occur in 2026, with ongoing adjustments based on producer forecasts [10][12] Q&A Session Summary Question: Can you talk about the decision to sanction another plant right now? - The decision was based on strong support from existing agreements and confidence in long-term delivery from producers [5][6] Question: Can you provide an update on the Pathfinder pipeline project? - The project is on track for a 2027 launch, with positive discussions with customers regarding long-term solutions [8]

Financial Performance & Guidance - Kinetik achieved record financial results in 2024, with Adjusted EBITDA of $971.1 million, representing a 16% year-over-year growth[7, 12] - The company anticipates 2025 Adjusted EBITDA to be in the range of $1.09 billion to $1.15 billion, with a midpoint of $1.12 billion, reflecting a 15% year-over-year increase[19, 31] - Kinetik expects its 4Q25E annualized Adjusted EBITDA to exceed $1.2 billion[19] - Capital expenditures for 2024 were $264.5 million, resulting in a reinvestment ratio of 27%[11, 12] - The company projects 2025 capital expenditures to be between $450 million and $540 million, with a midpoint of $495 million[19, 31] Segment Performance - Midstream Logistics contributed $614.1 million, or 62%, to the total Adjusted EBITDA in 2024[12] - Pipeline Transportation accounted for $377.6 million, or 38%, of the total Adjusted EBITDA in 2024[12] - In 4Q24, Midstream Logistics Adjusted EBITDA was $150 million, a 3% increase year-over-year, while Pipeline Transportation Adjusted EBITDA was $92 million, a 9% increase year-over-year[17, 18] Growth & Strategy - Kinetik is strategically investing in projects like the Kings Landing Complex (adding 220 Mmcfpd of processing capacity), the Eddy County Project, and the ECCC Pipeline to drive future growth[19, 30] - The company expects approximately 20% year-over-year growth in gas processed volumes across its system in 2025[31, 40] - Kinetik aims for a leverage target of 3.5x and is currently at 3.4x, with a goal of achieving investment-grade credit ratings[5, 54]