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Kinetik Reports Second Quarter 2025 Financial and Operating Results and Updates Full Year 2025 Guidance
•Generated second quarter net income of $74.4 million and Adjusted EBITDA1 of $242.9 million
•Commenced commissioning at the Kings Landing Complex (“Kings Landing”) with full commercial in-service expected in late September 2025, providing long overdue relief for producers with material curtailed production on the Delaware North system and allowing for resumption of new development activity
•Updating the Company’s 2025 Adjusted EBITDA1 Guidance range to $1.03 billion to $1.09 billion
•Continue to expect fourth quarter 2025 annualized Adjusted EBITDA1,2 of approximately $1.2 billion     
•Narrowing the 2025 Capital Guidance range to $460 million to $530 million, including growth and maintenance
•Began construction of the ECCC Pipeline, connecting the western portion of Kinetik’s system between Eddy and Culberson counties and providing further critical rich gas takeaway capacity relief for the Delaware North system
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 Adjusted EBITDA1 of $242.9 million and $493.0 million, Distributable Cash Flow1 of $153.3 million and $310.3 million, and Free Cash Flow1 of $7.9 million and $128.3 million for the three and six months ended June 30, 2025, respectively. For the three months ended June 30, 2025, Kinetik processed natural gas volumes of 1.75 Bcf/d.

“Kinetik navigated both successes and challenges in the second quarter of 2025,” said Jamie Welch, Kinetik’s President & Chief Executive Officer. “First and foremost, I am incredibly proud of our team’s focus on operational execution and meeting our customers’ needs during a period marked with macroeconomic uncertainty and market volatility. For the quarter, we reported Adjusted EBITDA1 of $243 million with processed gas volumes growing 11% year-over-year. That growth was partially offset by lower commodity pricing and higher operating costs.”

“Kinetik’s earnings trajectory remains weighted to the second half of 2025 with the full in-service of Kings Landing. The associated return of curtailed production and customer development activity at Delaware North will result in material processed gas volume growth throughout the fourth quarter of this year and into 2026.”

Welch continued, “With the expected in-service timing for Kings Landing, some delays in producer development activity to early 2026, as well as commodity price headwinds and associated operating cost increases, particularly relating to rental equipment and electricity, we are updating our full year 2025 Adjusted EBITDA1 Guidance range to $1.03 billion to $1.09 billion.”

“Capital Expenditures3 were $126 million in the second quarter as we started commissioning Kings Landing. We now anticipate Capital Expenditures3 to be more weighted to the third quarter of 2025 driven by timing of Kings Landing completion. We are narrowing full year Capital Guidance to $460 million to $530 million, including growth and maintenance Capital Expenditures3 and any contingent consideration tied to the final cost of Kings Landing.”

“Looking ahead, Management remains confident in Kinetik’s value proposition as we continue to see numerous commercial opportunities with both new and existing customers that are highly synergistic to our existing footprint and accretive to our business in 2026 and beyond.”
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Financial
a.Achieved quarterly net income of $74.4 million and Adjusted EBITDA1 of $242.9 million.
b.Repurchased $172.6 million4 of Class A common stock year to date under the existing Repurchase Program, of which $72.6 million was repurchased during the second quarter of 2025.
c.Completed refinancing of the Company’s Term Loan A and Revolving Credit Facility, extending maturities to May 30, 2028 and May 30, 2030, respectively.
d.Exited the quarter with a Leverage Ratio1,5 per the Company’s Credit Agreement of 3.6x and a Net Debt to Adjusted EBITDA1,6 Ratio of 4.0x.
Selected Key Metrics
Three Months Ended June 30,Six Months Ended June 30,
20252025
(In thousands, except ratios)
Net income including noncontrolling interest$74,416 $93,678 
Adjusted EBITDA1
$242,933 $492,950 
Distributable Cash Flow1
$153,303 $310,284 
Dividend Coverage Ratio1,7
1.2x1.2x
Capital Expenditures3
$126,267 $204,341 
Free Cash Flow1
$7,882 $128,275 
Leverage Ratio1,5
3.6x
Net Debt to Adjusted EBITDA Ratio1,6
4.0x
Common stock issued and outstanding8
156,322 

June 30, 2025March 31, 2025
(In thousands)
Net Debt1,9
$3,943,567 $3,734,955 
Operational and Construction
a.Commenced commissioning at Kings Landing with full commercial in-service expected in late September 2025.
b.Construction started on ECCC Pipeline with in-service expected during the first half of 2026.
c.Filed acid gas injection permit for Kings Landing with approval expected by the end of 2025.
Governance and Sustainability
a.Listed Kinetik’s common stock on NYSE Texas while maintaining its primary listing on the New York Stock Exchange.
b.Published 2024 Sustainability Report highlighting the Company’s sustainability initiatives, progress, and achievements.
c.Infinium commenced construction on Project Roadrunner, an ultra-low carbon electrofuels production site, in Reeves County, Texas. Kinetik will be the long-term CO2 feedstock provider upon expected completion in 2027.
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Upcoming Tour Dates
Kinetik plans to participate at the following upcoming conferences and events:
a.Citi Natural Resources Conference in Las Vegas on August 12th - 13th
b.Barclays CEO Energy-Power Conference in New York on September 3rd
c.PEP Energy Conference in Austin on September 29th
d.Wolfe Utilities, Midstream & Clean Energy Conference in New York on September 30th
Investor Presentation
An updated investor presentation will be available under Events and Presentations in the Investors section of the Company’s website at www.ir.kinetik.com.
Conference Call and Webcast
Kinetik will host its second quarter 2025 results conference call on Thursday, August 7, 2025 at 8:00 am Central Daylight Time (9:00 am Eastern Daylight Time) to discuss second quarter results. To access a live webcast of the conference call, please visit the Investors section of Kinetik’s website at www.ir.kinetik.com. A replay of the conference call will also be available on the website following the call.
About Kinetik Holdings Inc.
Kinetik is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation operating in the Delaware Basin. Kinetik is headquartered in Houston and Midland, Texas. Kinetik provides comprehensive gathering, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water. Kinetik posts announcements, operational updates, investor information and press releases on its website, www.kinetik.com.
Contacts
Kinetik Investors:
Alex Durkee
(713) 574-4743
investors@kinetik.com
Forward-looking statements
This news release 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,” “might,” “plan,” “seeks,” “possible,” “potential,” “predict,” “project,” “prospects,” “guidance,” “outlook,” “should,” “would,” “will,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about the Company’s future business strategy and plans, expectations, and objectives for the Company’s operations, including statements about strategy, synergies, sustainability goals and initiatives, portfolio monetization opportunities, expansion projects and the timing thereof, and future operations, and financial guidance; growth opportunities; the amount and timing of future shareholder returns; the Company’s projected dividend amounts and the timing thereof; and the Company’s leverage and financial profile. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties, which could cause our actual results, performance, and financial condition to differ materially from our expectations. See Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not
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possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future development, or otherwise, except as may be required by law.
Additional information
Additional information follows, including a reconciliation of Adjusted EBITDA, Distributable Cash Flow, Free Cash Flow, and Net Debt (non-GAAP financial measures) to the GAAP measures.
Non-GAAP financial measures
Kinetik’s financial information includes information prepared in conformity with generally accepted accounting principles (GAAP) as well as non-GAAP financial information. It is management’s intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP. Adjusted EBITDA, Distributable Cash Flow, Free Cash Flow, Dividend Coverage Ratio, Net Debt and Leverage Ratio are non-GAAP measures. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated. See “Reconciliation of GAAP to Non-GAAP Measures” elsewhere in this news release. This news release also includes certain forward-looking non-GAAP financial information. Reconciliations of these forward-looking non-GAAP measures to their most directly comparable GAAP measure are not available without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various reconciling items that would impact the most directly comparable forward-looking GAAP financial measure, that have not yet occurred, are out of Kinetik’s control and/or cannot be reasonably predicted. Accordingly, such reconciliation is excluded from this new release. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

1.A non-GAAP financial measure. See “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Measures” for further details.
2.A reconciliation of expected full year or annualized fourth quarter 2025 Adjusted EBITDA to net income (loss), the closest GAAP financial measure, cannot be provided without unreasonable efforts due to the inherent difficulty in quantifying certain amounts, including share-based compensation expense, which is affected by factors including future personnel needs and the future prices of our Class A Common Stock, which may be significant.
3.Net of contributions in aid of construction and returns of invested capital from unconsolidated affiliates.
4.Dollar value of Kinetik Class A common stock repurchased year to date as of August 6, 2025.
5.Leverage Ratio is total debt less cash and cash equivalents divided by last twelve months Adjusted EBITDA, calculated per the Company’s credit agreement. The calculation includes EBITDA Adjustments for Qualified Projects, Acquisitions and Divestitures.
6.Net Debt to Adjusted EBITDA Ratio is defined as Net Debt divided by last twelve months Adjusted EBITDA.
7.Dividend Coverage Ratio is Distributable Cash Flow divided by total declared dividends.
8.Issued and outstanding shares of 156,322,500 is the sum of 63,545,388 shares of Class A common stock and 92,777,112 shares of Class C common stock. Excludes 7,680,492 shares of Class C common stock issued on July 1, 2025 in connection with the Durango Permian acquisition.
9.Net Debt is defined as total current and long-term debt, excluding deferred financing costs, less cash and cash equivalents.


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KINETIK HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

 Three Months Ended
June 30,		Six Months Ended
June 30,
 2025202420252024
(In thousands, except per share data)
Operating revenues:
Service revenue$112,654 $96,415 $240,580 $198,610 
Product revenue311,590 260,102 624,095 496,669 
Other revenue2,494 2,940 5,326 5,572 
Total operating revenues426,738 359,457 870,001 700,851 
Operating costs and expenses:
Costs of sales (excluding depreciation and amortization) (1)
156,697 146,513 380,061 300,200 
Operating expenses68,045 44,068 131,648 87,474 
Ad valorem taxes6,559 6,212 13,350 12,504 
General and administrative expenses24,244 31,091 61,836 65,227 
Depreciation and amortization expenses93,763 75,061 186,436 148,667 
(Gain) loss on disposal of assets, net(25)(76)(65)4,090 
Total operating costs and expenses349,283 302,869 773,266 618,162 
Operating income77,455 56,588 96,735 82,689 
Other income (expense):
Interest and other income2,732 309 3,517 400 
Loss on debt extinguishment(635)(525)(635)(525)
Gain on sale of equity method investment— 59,884 — 59,884 
Interest expense(56,514)(54,049)(112,228)(101,516)
Equity in earnings of unconsolidated affiliates58,705 55,955 116,183 116,424 
Total other income, net4,288 61,574 6,837 74,667 
Income before income taxes81,743 118,162 103,572 157,356 
Income tax expense7,327 9,214 9,894 13,001 
Net income including noncontrolling interest74,416 108,948 93,678 144,355 
Net income attributable to Common Unit limited partners50,771 71,756 63,903 95,613 
Net income attributable to holders of Class A Common Stock$23,645 $37,192 $29,775 $48,742 
Net income attributable to holders of Class A Common Stock, per share
Basic$0.33 $0.54 $0.38 $0.68 
Diluted$0.33 $0.54 $0.38 $0.67 
Weighted-average shares
Basic61,721 59,792 60,946 58,840 
Diluted62,228 60,279 61,693 59,503 
(1)Cost of sales (exclusive of depreciation and amortization) is net of gas service revenues totaling $73.6 million and $54.7 million for the three months ended June 30, 2025 and 2024, respectively, and $135.8 million and $99.2 million for the six months ended June 30, 2025 and 2024, respectively, for certain volumes, where we act as principal.

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KINETIK HOLDINGS INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
(In thousands)
Net Income Including Noncontrolling Interests to Adjusted EBITDA
Net income including noncontrolling interest (GAAP)
$74,416 $108,948 $93,678 $144,355 
Add back:
Interest expense56,514 54,049 112,228 101,516 
Income tax expense7,327 9,214 9,894 13,001 
Depreciation and amortization expenses93,763 75,061 186,436 148,667 
Amortization of contract costs1,655 1,655 3,310 3,310 
Proportionate EBITDA from unconsolidated affiliates88,100 85,922 175,630 174,324 
Share-based compensation9,695 15,136 30,348 37,697 
(Gain) loss on disposal of assets, net(25)(76)(65)4,090 
Loss on debt extinguishment635 525 635 525 
Commodity hedging unrealized loss— — — 6,883 
Integration costs2,433 2,510 5,971 2,551 
Acquisition transaction costs— 3,232 — 3,232 
Other one-time costs or amortization5,186 2,581 11,792 5,006 
Deduct:
Interest income
318 310 1,108 887 
Gain on sale of equity method investment— 59,884 — 59,884 
Commodity hedging unrealized gain37,743 8,205 19,616 — 
Equity income from unconsolidated affiliates58,705 55,955 116,183 116,424 
Adjusted EBITDA(1) (non-GAAP)
$242,933 $234,403 $492,950 $467,962 
Distributable Cash Flow(2)
Adjusted EBITDA (non-GAAP)$242,933 $234,403 $492,950 $467,962 
Proportionate EBITDA from unconsolidated affiliates(88,100)(85,922)(175,630)(174,324)
Returns on invested capital from unconsolidated affiliates63,604 75,429 126,941 152,642 
Interest expense(56,514)(54,049)(112,228)(101,516)
Unrealized gain on interest rate swaps(741)(189)(1,411)(9,566)
Maintenance capital expenditures(7,879)(6,780)(20,338)(17,780)
Distributable cash flow (non-GAAP)
$153,303 $162,892 $310,284 $317,418 
Free Cash Flow(3)
Distributable cash flow (non-GAAP)$153,303 $162,892 $310,284 $317,418 
Cash interest adjustment(22,476)(29,144)10,197 (29,395)
Realized (loss) gain on interest rate swaps(2)3,953 (344)7,905 
Growth capital expenditures(123,498)(32,160)(189,210)(80,413)
Capitalized interest(4,555)(986)(7,859)(1,930)
Investments in unconsolidated affiliates(97)— (985)(3,273)
Returns of invested capital from unconsolidated affiliates2,293 — 2,853 1,240 
Contributions in aid of construction2,914 894 3,339 1,408 
Free cash flow (non-GAAP)
$7,882 $105,449 $128,275 $212,960 
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KINETIK HOLDINGS INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
Six Months Ended June 30,
20252024
(In thousands)
Reconciliation of net cash provided by operating activities to Adjusted EBITDA
Net cash provided by operating activities$305,907 $279,222 
Net changes in operating assets and liabilities11,559 49,046 
Interest expense112,228 101,516 
Amortization of deferred financing costs(3,984)(3,582)
Current income tax expense485 610 
Returns on invested capital from unconsolidated affiliates(126,941)(152,642)
Proportionate EBITDA from unconsolidated affiliates175,630 174,324 
Derivative fair value adjustment and settlement21,027 2,683 
Commodity hedging unrealized (gain) loss(19,616)6,883 
Interest income
(1,108)(887)
Integration costs5,971 2,551 
Acquisition transaction costs— 3,232 
Other one-time cost or amortization11,792 5,006 
Adjusted EBITDA(1) (non-GAAP)
$492,950 $467,962 
Distributable Cash Flow(2)
Adjusted EBITDA (non-GAAP)$492,950 $467,962 
Proportionate EBITDA from unconsolidated affiliates(175,630)(174,324)
Returns on invested capital from unconsolidated affiliates126,941 152,642 
Interest expense(112,228)(101,516)
Unrealized gain on interest rate swaps(1,411)(9,566)
Maintenance capital expenditures(20,338)(17,780)
Distributable cash flow (non-GAAP)
$310,284 $317,418 
Free Cash Flow(3)
Distributable cash flow (non-GAAP)$310,284 $317,418 
Cash interest adjustment10,197 (29,395)
Realized (loss) gain on interest rate swaps (344)7,905 
Growth capital expenditures(189,210)(80,413)
Capitalized interest(7,859)(1,930)
Investments in unconsolidated affiliates(985)(3,273)
Returns of invested capital from unconsolidated affiliates2,853 1,240 
Contributions in aid of construction3,339 1,408 
Free cash flow (non-GAAP)
$128,275 $212,960 








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KINETIK HOLDINGS INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
June 30,March 31,
20252025
(In thousands)
Net Debt(4)
Short-term debt$189,300 $148,800 
Long-term debt, net3,736,972 3,568,457 
Plus: Debt issuance costs, net28,028 26,543 
Total debt3,954,300 3,743,800 
Less: Cash and cash equivalents10,733 8,845 
Net debt (non-GAAP)
$3,943,567 $3,734,955 

(1) Adjusted EBITDA is defined as net income including noncontrolling interest adjusted for interest, taxes, depreciation and amortization, gain or loss on disposal of assets and debt extinguishment, the proportionate EBITDA from our EMI pipelines, share-based compensation expense, noncash increases and decreases related to commodity hedging activities, integration and transaction costs and extraordinary losses and unusual or non-recurring charges. Adjusted EBITDA provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted EBITDA should not be considered as an alternative to the GAAP measure of net income including non-controlling interest or any other measure of financial performance presented in accordance with GAAP.
(2) Distributable Cash Flow is defined as Adjusted EBITDA, adjusted for the proportionate EBITDA from unconsolidated affiliates, returns on invested capital from unconsolidated affiliates, interest expense, net of amounts capitalized, unrealized gains or losses on interest rate swaps and maintenance capital expenditures. Distributable Cash Flow should not be considered as an alternative to the GAAP measure of net income including non-controlling interest or any other measure of financial performance presented in accordance with GAAP. We believe that Distributable Cash Flow is a useful measure to compare cash generation performance from period to period and to compare the cash generation performance for specific periods to the amount of cash dividends we make.
(3) Free Cash Flow is defined as Distributable Cash Flow adjusted for growth capital expenditures, investments in unconsolidated affiliates, returns of invested capital from unconsolidated affiliates, cash interest, capitalized interest, realized gains or losses on interest rate swaps and contributions in aid of construction. Free Cash flow should not be considered as an alternative to the GAAP measure of net income including non-controlling interest or any other measure of financial performance presented in accordance with GAAP. We believe that Free Cash Flow is a useful performance measure to compare cash generation performance from period to period and to compare the cash generation performance for specific periods to the amount of cash dividends that we make.
(4) Net Debt is defined as total short-term and long-term debt, excluding deferred financing costs, premiums and discounts, less cash and cash equivalents. Net Debt illustrates our total debt position less cash on hand that could be utilized to pay down debt at the balance sheet date. Net Debt should not be considered as an alternative to the GAAP measure of total long-term debt, or any other measure of financial performance presented in accordance with GAAP.
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