Kinetik Holdings Inc.

First-quarter 2026 adjusted EBITDA was $251 million, a quarterly record and above the high end of the prior range. Distributable cash flow was $181 million and free cash flow was $101 million. Midstream Logistics adjusted EBITDA was $179 million, up 12% year over year, while Pipeline Transportation adjusted EBITDA was $78 million, down year over year because of the EPIC Crude divestiture and lower Chinook throughput. Management reaffirmed 2026 adjusted EBITDA guidance of $950 million to $1.05 billion and CapEx guidance of $450 million to $510 million. They now expect processed gas volumes to grow low- to mid-single digits year over year in 2026, reflecting roughly 220 million cubic feet per day of curtailments on average.

Jamie Welch emphasized that the quarter reflected execution across commercial, operations, and financial priorities, and he framed the company as well positioned despite a tougher macro backdrop. He highlighted new and amended agreements in Texas and New Mexico, including a Durango amendment that expands acreage by roughly 25% and extends terms through 2039, and said the commercial work supports longer-term visibility and potential expansion at King’s Landing. He also stressed that the company is actively monetizing its footprint through fee-based power opportunities and securing longer-dated Gulf Coast and LNG pricing exposure.

Trevor Howard said the first quarter delivered record $251 million of adjusted EBITDA, with strong marketing gains offsetting about 170 million cubic feet per day of Waha-related shut-ins. He pointed to margin support from wider basis spreads, better operating performance, stronger commodity prices, and slightly lower unit operating costs, while also noting leverage of 3.9x and ample revolver capacity. On guidance, he kept 2026 EBITDA at $950 million to $1.05 billion, acknowledged lower gas volume assumptions from higher curtailments, and said CapEx should remain within the $450 million to $510 million range with spending weighted fairly evenly through the rest of the year.

Analysts focused on the Durango amendments, Pecos Power, King’s Landing 2 timing, 2027 growth, and whether marketing gains can keep offsetting Waha-driven curtailments. Management said Durango adds a modest 1% to 2% uplift to the base business in 2026 and increases the fee-based mix, while Pecos Power is a no-capex, fee-based opportunity and a template they may replicate. On King’s Landing 2, management said they are getting closer to a FID but want more commercial progress first; they also said the ECCC pipeline serves as a capital-light bridge. For 2027, management said a higher PDP base, NGL contract resets, and sour gas conversion benefits could set up a strong year, but they would not quantify growth yet.