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]