Please wait

kinetik_lightbgcropa.jpg
Kinetik Reports Record Second Quarter 2026 Results and Raises Full Year 2026 Guidance
HOUSTON and MIDLAND, Texas, August 5, 2026 – Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik” or the “Company”) today reported record results for the quarter ended June 30, 2026 and increased its full year 2026 Adjusted EBITDA1 guidance.
Kinetik reported net income including noncontrolling interest of $123.1 million and $118.0 million for the three and six months ended June 30, 2026, respectively. Kinetik generated Adjusted EBITDA1 of $280.8 million and $532.0 million, Distributable Cash Flow1 of $194.9 million and $375.8 million, and Free Cash Flow1 of $105.2 million and $206.6 million for the three and six months ended June 30, 2026, respectively.
Highlights
•Record financial results in the second quarter of 2026, supported by outstanding operational execution, robust system performance, and commodity margin outperformance
•Final investment decision for Kings Landing II (“KLII”), expanding system processing capacity to 2.7 Bcf/d in 2028
•ECCC Pipeline placed into service, enhancing north-to-south system connectivity, with right-of-way procurement now underway to support an anticipated expansion in 2027
•Secured incremental firm Gulf Coast market access for residue gas, commencing in 2027 and providing producer customers with premium pricing options
•Executed new residue and natural gas liquids transport agreements, strengthening egress capacity portfolio and netback pricing for Delaware North processing complexes
•Board authorization of long-lead equipment procurement for the next processing capacity expansion beyond KLII, proactively aligning supply chain with accelerating customer development plans
•Increasing full year 2026 Financial Guidance:
◦Adjusted EBITDA1 guidance of $1.04 billion to $1.1 billion, reflecting stronger volumes, improved margins, and operational performance
◦Capital Expenditures2 guidance of approximately $560 million (including maintenance), driven by KLII, accelerated producer development into late 2026 and early 2027, optimization projects across operations, procurement of long-lead equipment for Kinetik’s next processing capacity expansion, and right-of-way procurement for an expansion of ECCC Pipeline
CEO Commentary
“Kinetik delivered exceptional second quarter 2026 results, significantly exceeding expectations,” said Jamie Welch, Kinetik’s President & Chief Executive Officer. “Our performance during the quarter demonstrates the strength and resilience of our integrated business model, the quality and diversification of our asset footprint, and our continued strong operational performance, which enabled Kinetik to deliver the strongest financial results in Company history.”

“We advanced numerous initiatives this quarter, including reaching final investment decision (“FID”) on KLII, completing the ECCC Pipeline with right-of-way procurement beginning for an anticipated 2027 expansion, and commencing drilling operations at the Kings Landing acid gas injection (“AGI”) well. Furthermore, we have initiated procurement of long-lead equipment for the next processing plant after KLII given updated development plans and new customer commitments.”

Welch added, “The increase to our 2026 Adjusted EBITDA1 guidance reflects not only outperformance in the first half of the year, but also an increase relative to original expectations for the remainder of the year. We now anticipate Adjusted EBITDA1 to be between $260 million and $270 million in the third quarter and $270 million to $280 million in the fourth quarter.”

“Momentum is building across our system and is expected to be a strong tailwind into 2027. Curtailments have eased, customer activity is pulling forward, and the market increasingly recognizes the critical role the Permian Basin plays in meeting growing U.S. natural gas demand, anchored by LNG exports and data center developments. Kinetik is exceptionally well positioned to capitalize on this structural growth, reinforcing our tremendous confidence in 2027 and beyond.”

1

Financial Highlights
Three Months Ended June 30,Six Months Ended June 30,
20262026
(In thousands, except ratios)
Net income including noncontrolling interest$123,113 $117,988 
Adjusted EBITDA1
$280,784 $531,984 
Midstream Logistics Adjusted EBITDA1
$204,766 $383,687 
Pipeline Transportation Adjusted EBITDA1
$83,001 $160,978 
Corporate and Other Adjusted EBITDA1
$(6,983)$(12,681)
Distributable Cash Flow1
$194,924 $375,755 
Dividend Coverage Ratio1,3
1.47x1.41x
Capital Expenditures2
$106,019 $197,352 
Free Cash Flow1
$105,203 $206,584 
Net Debt1,4
$3,940,170 
Liquidity (Cash and Revolver Availability)5
$1,072,230 
Leverage Ratio1,6
3.85x
Net Debt to Adjusted EBITDA Ratio1,7
3.84x
Common stock issued and outstanding8
162,375 
Dividend per share of issued and outstanding Common stock
$0.81 
Segment Insights
The Midstream Logistics segment generated Adjusted EBITDA1 of $204.8 million, a 35% increase year-over-year for the three months ended June 30, 2026. Kinetik processed natural gas volumes of 1.74 Bcf/d in the second quarter of 2026, flat year-over-year despite an estimated 250 MMcf/d of Waha price-related processed gas volume shut-ins. Second quarter 2026 results benefited from strong system operating performance, improved natural gas liquid (“NGL”) recoveries and condensate yields, optimization opportunities, and favorable commodity prices and spreads.

The Pipeline Transportation segment generated Adjusted EBITDA1 of $83.0 million, a 14% decrease year-over-year for the three months ended June 30, 2026, due to the Company’s divestiture in late 2025 of its equity interest in EPIC Crude Holdings, LP (“EPIC Crude”). Permian Highway Pipeline outperformed year-over-year on lower fuel costs and higher gross margin. Additionally, Shin Oak outperformed expectations due to more robust throughput volumes.
Raising 2026 Outlook and Guidance
Kinetik is increasing its full year 2026 Adjusted EBITDA1 guidance to be between $1.04 billion and $1.1 billion. The revised midpoint represents a 7% increase from the original 2026 guidance issued in February and an approximately 15% increase year-over-year pro forma the EPIC Crude divestiture.9

Updated Adjusted EBITDA1 guidance assumes:
•Approximately 25 MMcf/d of curtailments on average for the second half of 2026;
•2026 processed gas volume exit rate10 of nearly 2.2 Bcf/d, an increase of approximately 20% exit-to-exit; and
•Updated full year 2026 average commodity prices11 of $78.65 per barrel for WTI, $2.83 per MMBtu for Houston Ship Channel natural gas, ($0.26) per MMBtu for Waha Hub natural gas, and $0.62 per gallon for composite NGLs.

Kinetik is also increasing its 2026 Capital Expenditures2 guidance (including maintenance) to approximately $560 million to reflect:
•FID of KLII;
•Acceleration of customer development plans into late 2026 and early 2027;
•Optimization projects across operations;
•Purchase of long-lead equipment items relating to the next processing capacity expansion; and
•Right-of-way procurement for an expansion of ECCC Pipeline.
2

Strategic Projects & Commercial Activity
In May 2026, Kinetik reached FID on KLII. Upon completion, total Delaware North sour gas processing capacity will exceed 700 MMcf/d. Processing, amine, and residue compression equipment has been purchased. Total capital is expected to be approximately $260 million. KLII is now expected to be completed in mid-2028, earlier than previously communicated.

The ECCC Pipeline was placed into service, establishing a north-to-south connection across the western portion of Kinetik's system between Eddy and Culberson Counties. Rich gas throughput volumes on the pipeline are expected to increase throughout the balance of the year as Kings Landing I reaches full utilization. Given ECCC Pipeline utilization expectations and continued customer growth in New Mexico, Kinetik has initiated right-of-way procurement to support an expansion.

Following approval of all permitting earlier this year, the Company's acid gas injection and sour conversion project remains on schedule with site construction activities and drilling operations underway. Project in-service is expected by year-end 2026.

Kinetik continues to make progress on Diamond Volt, its 40 MW behind-the-meter power generation project at the Diamond Cryo Complex, with in-service anticipated in the second quarter of 2027.

Kinetik’s Board of Directors has also approved the purchase of long-lead equipment for a processing expansion beyond KLII, positioning the Company to keep pace with its customer growth as overall activity has continued to increase. These investments reinforce Kinetik's confidence in the long-term growth of its business.

Several commercial initiatives were recently executed that further strengthen Kinetik’s integrated Permian-to-Gulf Coast platform, address demand needs, and expand market optionality.

The Company secured firm access to additional Gulf Coast netback residue gas pricing in 2027, enhancing its integrated residue gas offering and providing its customers with premium price assurance.

Kinetik also signed residue gas and NGL transportation agreements for its Delaware North processing complexes, providing diversified market access, improving customer netbacks, and increasing operational flexibility. These agreements support continued customer growth and strengthen the outlook for Kinetik’s existing and expanding Delaware North processing capacity.
Conference Call & Webcast
Kinetik will host its second quarter 2026 results conference call on Thursday, August 6, 2026 at 8:00 am Central Time (9:00 am Eastern Time). 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 be available on the website following the call.
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. Information on the Company’s website does not constitute a portion of, and is not incorporated by reference into, this press release.
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.
Investor Contact
Alex Durkee
Shyam Patel
(713) 493-0900
3

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, outlooks, guidance 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, technology adoption, portfolio monetization opportunities, growth, expansion, cost reduction and other capital projects and the timing and cost thereof, future operations, 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 targeted 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, 2025 filed with the SEC on February 26, 2026. 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 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 news 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.Net of contributions in aid of construction, asset disposal proceeds, and returns of invested capital from unconsolidated affiliates.
3.Dividend Coverage Ratio is Distributable Cash Flow divided by total declared dividends.
4.Net Debt is defined as total current and long-term debt, excluding deferred financing costs, less cash and cash equivalents.
5.Liquidity is calculated as cash and cash equivalents of $7.8 million plus Revolving Credit Facility availability of $1,064.4 million as of June 30, 2026.
6.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.
7.Net Debt to Adjusted EBITDA Ratio is defined as Net Debt divided by last twelve months Adjusted EBITDA.
8.162.4 million shares, issued and outstanding shares as of June 30, 2026, is the sum of 78.9 million shares of Class A common stock and 83.4 million shares of Class C common stock.
4

9.2025 Adjusted EBITDA, excluding actual Adjusted EBITDA contributions from EPIC Crude.
10.Exit rate represents average processed gas volumes during the fourth quarter of 2026.
11.Market forward pricing as of July 28, 2026.
5

KINETIK HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(In thousands, except per share data)
Operating revenues:
Service revenue$86,891 $112,654 $180,663 $240,580 
Product revenue490,800 311,590 803,033 624,095 
Other revenue3,749 2,494 7,720 5,326 
Total operating revenues581,440 426,738 991,416 870,001 
Operating costs and expenses:
Costs of sales (excluding depreciation and amortization) (1)
237,592 156,697 426,316 380,061 
Operating expenses71,922 68,045 142,223 131,648 
Ad valorem taxes8,393 6,559 17,168 13,350 
General and administrative expenses26,261 24,244 70,461 61,836 
Depreciation and amortization expenses103,331 93,763 205,164 186,436 
Gain on disposal of assets, net(36)(25)(55)(65)
Total operating costs and expenses447,463 349,283 861,277 773,266 
Operating income133,977 77,455 130,139 96,735 
Other income (expense):
Interest and other income297 2,732 464 3,517 
Loss on debt extinguishment— (635)— (635)
Interest expense(54,121)(56,514)(107,541)(112,228)
Equity in earnings of unconsolidated affiliates57,383 58,705 108,571 116,183 
Total other income, net3,559 4,288 1,494 6,837 
 Income before income taxes137,536 81,743 131,633 103,572 
Income tax expense14,423 7,327 13,645 9,894 
Net income including noncontrolling interest123,113 74,416 117,988 93,678 
Net income attributable to Common Unit limited partners73,574 50,771 70,116 63,903 
Net income attributable to holders of Class A Common Stock$49,539 $23,645 $47,872 $29,775 
Net income attributable to holders of Class A Common Stock, per share
Basic$0.65 $0.33 $0.62 $0.38 
Diluted$0.64 $0.33 $0.61 $0.38 
Weighted-average shares
Basic75,138 61,721 70,550 60,946 
Diluted75,812 62,228 71,449 61,693 
(1)Cost of sales (exclusive of depreciation and amortization) is net of gas service revenues totaling $110.6 million and $73.6 million for the three months ended June 30, 2026 and 2025, respectively, and $212.8 million and $135.8 million for the six months ended June 30, 2026 and 2025, respectively, for certain volumes where we act as principal.

6

KINETIK HOLDINGS INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(In thousands)
Net Income Including Noncontrolling Interests to Adjusted EBITDA
Net income including noncontrolling interest (GAAP)$123,113 $74,416 $117,988 $93,678 
Add back:
Interest expense54,121 56,514 107,541 112,228 
Income tax expense14,423 7,327 13,645 9,894 
Depreciation and amortization expenses103,331 93,763 205,164 186,436 
Amortization of contract costs2,054 1,655 4,004 3,310 
Proportionate EBITDA from unconsolidated affiliates74,878 88,100 144,907 175,630 
Share-based compensation9,064 9,695 29,727 30,348 
Loss on debt extinguishment— 635 — 635 
Integration costs— 2,433 368 5,971 
Litigation costs5,375 2,381 16,988 5,396 
Other one-time costs or amortization1,739 2,805 3,353 6,396 
Deduct:
Interest income
297 318 464 1,108 
Gain on disposal of assets, net
36 25 55 65 
Commodity hedging unrealized gain49,598 37,743 2,611 19,616 
Equity in earnings of unconsolidated affiliates57,383 58,705 108,571 116,183 
Adjusted EBITDA(1) (non-GAAP)
$280,784 $242,933 $531,984 $492,950 
Distributable Cash Flow(2)
Adjusted EBITDA (non-GAAP)$280,784 $242,933 $531,984 $492,950 
Proportionate EBITDA from unconsolidated affiliates(74,878)(88,100)(144,907)(175,630)
Returns on invested capital from unconsolidated affiliates61,913 63,604 130,222 126,941 
Interest expense(54,121)(56,514)(107,541)(112,228)
Unrealized gain on interest rate swaps(2,476)(741)(5,822)(1,411)
Maintenance capital expenditures(16,298)(7,879)(28,181)(20,338)
Distributable cash flow (non-GAAP)
$194,924 $153,303 $375,755 $310,284 
Free Cash Flow(3)
Distributable cash flow (non-GAAP)$194,924 $153,303 $375,755 $310,284 
Growth capital expenditures(91,088)(123,498)(171,315)(189,210)
Investments in unconsolidated affiliates— (97)— (985)
Returns of invested capital from unconsolidated affiliates— 2,293 — 2,853 
Contributions in aid of construction1,367 2,914 2,144 3,339 
Free cash flow (non-GAAP)
$105,203 $34,915 $206,584 $126,281 
7

KINETIK HOLDINGS INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
Six Months Ended June 30,
20262025
(In thousands)
Reconciliation of net cash provided by operating activities to Adjusted EBITDA
Net cash provided by operating activities$341,520 $305,907 
Net changes in operating assets and liabilities46,082 11,559 
Interest expense107,541 112,228 
Amortization of deferred financing costs(3,913)(3,984)
Current income tax expense2 485 
Returns on invested capital from unconsolidated affiliates(130,222)(126,941)
Proportionate EBITDA from unconsolidated affiliates144,907 175,630 
Derivative fair value adjustment and settlement8,433 21,027 
Commodity hedging unrealized gain(2,611)(19,616)
Interest income(464)(1,108)
Integration costs368 5,971 
Litigation costs16,988 5,396 
Other one-time cost or amortization3,353 6,396 
Adjusted EBITDA(1) (non-GAAP)
$531,984 $492,950 

June 30,March 31,December 31,
202620262025
(In thousands)
Net Debt(4)
Short-term debt$225,000 $187,100 $165,200 
Long-term debt, net3,700,562 3,644,128 3,627,720 
Plus: Debt issuance costs, net22,438 23,872 25,280 
Total debt3,948,000 3,855,100 3,818,200 
Less: Cash and cash equivalents7,830 720 3,951 
Net debt (non-GAAP)
$3,940,170 $3,854,380 $3,814,249 
(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 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.
8

KINETIK HOLDINGS INC.
RESULTS OF OPERATIONS BY SEGMENT
The following tables present the Segment Adjusted EBITDA of the Company’s reportable segments and reconciliations of the segment profits to consolidated income before income tax expenses for the three and six months ended June 30, 2026 and 2025:
Midstream LogisticsPipeline Transportation
Corporate and Other(1)
EliminationConsolidated
For the Three Months Ended June 30, 2026(In thousands)
Revenue$575,599 $2,092 $— $— $577,691 
Other revenue3,737 12 — — 3,749 
Intersegment revenue(2)
— 6,556 — (6,556)— 
Total segment operating revenue579,336 8,660 — (6,556)581,440 
Costs of sales (excluding depreciation and amortization expense)(238,087)495 — — (237,592)
Intersegment costs of sales(6,556)— — 6,556 — 
Operating expenses(3)
(79,512)(803)— — (80,315)
General and administrative expenses(4,509)(229)(21,523)— (26,261)
Proportionate EMI EBITDA— 74,878 — — 74,878 
Other segment items(4)
(45,906)— 14,540 — (31,366)
Segment Adjusted EBITDA(5)
$204,766 $83,001 $(6,983)$— $280,784 
Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes
Segment Adjusted EBITDA(5)
$204,766 $83,001 $(6,983)$— $280,784 
Add back:
Other interest income— — 297 — 297 
Gain on disposal of assets, net
36 — — — 36 
Commodity hedging unrealized gain49,598 — — — 49,598 
Equity in earnings of unconsolidated affiliates— 57,383 — — 57,383 
Deduct:
Interest expense55 — 54,066 — 54,121 
Depreciation and amortization expenses100,994 2,331 6 — 103,331 
Contract assets amortization
2,054 — — — 2,054 
Proportionate EMI EBITDA— 74,878 — — 74,878 
Share-based compensation
— — 9,064 — 9,064 
Litigation costs— — 5,375 — 5,375 
Other one-time costs or amortization1,638 — 101 — 1,739 
Income (loss) before income taxes$149,659 $63,175 $(75,298)$— $137,536 

9

Midstream LogisticsPipeline Transportation
Corporate and Other(1)
EliminationConsolidated
For the Three Months Ended June 30, 2025(In thousands)
Revenue$421,813 $2,431 $— $— $424,244 
Other Revenue2,492 2 — — 2,494 
Intersegment revenue(2)
— 7,674 — (7,674)— 
Total segment operating revenue424,305 10,107 — (7,674)426,738 
Costs of sales (excluding depreciation and amortization expense)(156,263)(434)— — (156,697)
Intersegment costs of sales(7,674)— — 7,674 — 
Operating expenses(3)
(73,888)(716)— — (74,604)
General and administrative expenses(4,996)(288)(18,960)— (24,244)
Proportionate EMI EBITDA— 88,100 — — 88,100 
Other segment items(4)
(30,277)— 13,917 — (16,360)
Segment Adjusted EBITDA(5)
$151,207 $96,769 $(5,043)$— $242,933 
Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes
Segment adjusted EBITDA(5)
$151,207 $96,769 $(5,043)$— $242,933 
Add back:
Other interest income— — 318 — 318 
Gain on disposal of assets25 — — — 25 
Commodity hedging unrealized gain37,743 — — — 37,743 
Equity in earnings of unconsolidated affiliates— 58,705 — — 58,705 
Deduct:
Interest expense32 — 56,482 — 56,514 
Depreciation and amortization expenses91,449 2,309 5 — 93,763 
Contract assets amortization1,655 — — — 1,655 
Proportionate EMI EBITDA— 88,100 — — 88,100 
Share-based compensation— — 9,695 — 9,695 
Loss on debt extinguishment— — 635 — 635 
Integration costs1,972 — 461 — 2,433 
Litigation costs— — 2,381 — 2,381 
Other one-time costs or amortization1,425 — 1,380 — 2,805 
Income (loss) before income taxes$92,442 $65,065 $(75,764)$— $81,743 

10


Midstream LogisticsPipeline Transportation
Corporate and Other(1)
EliminationConsolidated
For the Six Months Ended June 30, 2026(In thousands)
Revenue$979,319 $4,377 $— $— $983,696 
Other revenue7,698 22 — — 7,720 
Intersegment revenue(2)
— 13,380 — (13,380)— 
Total segment operating revenue987,017 17,779 — (13,380)991,416 
Costs of sales (excluding depreciation and amortization expense)(426,674)358 — — (426,316)
Intersegment costs of sales(13,380)— — 13,380 — 
Operating expenses(3)
(157,814)(1,577)— — (159,391)
General and administrative expenses(10,019)(489)(59,953)— (70,461)
Proportionate EMI EBITDA— 144,907 — — 144,907 
Other segment items(4)
4,557 — 47,272 — 51,829 
Segment Adjusted EBITDA(5)
$383,687 $160,978 $(12,681)$— $531,984 
Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes
Segment adjusted EBITDA(5)
$383,687 $160,978 $(12,681)$— $531,984 
Add back:
Other interest income— — 464 — 464 
Gain on disposal of assets55 — — — 55 
Commodity hedging unrealized gain2,611 — — — 2,611 
Equity income from unconsolidated affiliates— 108,571 — — 108,571 
Deduct:
Interest expense103 — 107,438 — 107,541 
Depreciation and amortization expenses200,492 4,660 12 — 205,164 
Contract assets amortization4,004 — — — 4,004 
Proportionate EMI EBITDA— 144,907 — — 144,907 
Share-based compensation— — 29,727 — 29,727 
Integration costs— — 368 — 368 
Litigation costs— — 16,988 — 16,988 
Other one-time costs or amortization3,164 — 189 — 3,353 
Income (loss) before income taxes$178,590 $119,982 $(166,939)$— $131,633 

11

Midstream LogisticsPipeline Transportation
Corporate and Other(1)
EliminationConsolidated
For the Six Months Ended June 30, 2025(In thousands)
Revenue$859,838 $4,837 $— $— $864,675 
Other revenue5,322 4 — — 5,326 
Intersegment revenue(2)
— 12,478 — (12,478)— 
Total segment operating revenue865,160 17,319 — (12,478)870,001 
Costs of sales (excluding depreciation and amortization expense)(379,623)(438)— — (380,061)
Intersegment costs of sales(12,478)— — 12,478 — 
Operating expenses(3)
(143,797)(1,201)— — (144,998)
General and administrative expenses(12,121)(660)(49,055)— (61,836)
Proportionate EMI EBITDA— 175,630 — — 175,630 
Other segment items(4)
(5,736)— 39,950 — 34,214 
Segment Adjusted EBITDA(5)
$311,405 $190,650 $(9,105)$— $492,950 
Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes
Segment adjusted EBITDA(5)
$311,405 $190,650 $(9,105)$— $492,950 
Add back:
Other interest income— — 1,108 — 1,108 
Gain on disposal of assets, net65 — — — 65 
Equity income from unconsolidated affiliates— 116,183 — — 116,183 
Commodity hedging unrealized gain19,616 — — — 19,616 
Deduct:
Interest expense60 — 112,168 — 112,228 
Depreciation and amortization expenses181,808 4,616 12 — 186,436 
Contract assets amortization3,310 — — — 3,310 
Proportionate EMI EBITDA— 175,630 — — 175,630 
Share-based compensation— — 30,348 — 30,348 
Loss on debt extinguishment— — 635 — 635 
Integration costs4,447 — 1,524 — 5,971 
Litigation costs— — 5,396 — 5,396 
Other one-time costs or amortization3,714 — 2,682 — 6,396 
Income (loss) before income taxes$137,747 $126,587 $(160,762)$— $103,572 
(1)Corporate and Other represents those results that: (i) are not specifically attributable to an operating segment; (ii) are not individually reportable or (iii) have not been allocated to a reportable segment for the purpose of evaluating their performance, including certain general and administrative expense items. Items are included here to reconcile the operating segments’ profit and loss with the Company’s consolidated results.
(2)The Company accounts for intersegment sales at market prices, while it accounts for asset transfers at book value. Intersegment revenue is eliminated at consolidation.
(3)Operating expenses includes ad valorem taxes.
(4)Other segment items include certain other income items, share-based compensation, adjustments related to amortization of contract costs, commodity hedging unrealized gain or loss, integration costs, litigation costs and other one-time costs or amortization.
(5)Adjusted EBITDA is defined as net income or loss including noncontrolling interest adjusted for interest, taxes, depreciation and amortization, gain or loss on disposal of assets, 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.
12