Kinetik Reports Third Quarter 2025 Financial and Operating Results and Revises 2025 Financial Guidance

Kinetik Holdings Inc. (NYSE:KNTK) ("Kinetik" or the "Company") today reported financial results for the quarter ended September 30, 2025.

Kinetik reported net income including noncontrolling interest of $15.5 million and $109.2 million for the three and nine months ended September 30, 2025, respectively. Kinetik generated Adjusted EBITDA¹ of $242.6 million and $735.6 million, Distributable Cash Flow¹ of $158.5 million and $468.8 million, and Free Cash Flow¹ of $50.9 million and $179.2 million for the three and nine months ended September 30, 2025, respectively.

Highlights

• Closed divestiture of 27.5% non-operated equity interest in EPIC Crude Holdings, LP ("EPIC Crude")
• Achieved full commercial in-service at the Kings Landing Complex ("Kings Landing") in late September 2025
• Revising 2025 Adjusted EBITDA¹ Guidance range to $965 million to $1.005 billion as outlined in the Outlook & Guidance section
• Refining 2025 Capital Guidance range to $485 million to $515 million, including growth and maintenance
• Reached final investment decision ("FID") on the acid gas injection ("AGI") project at Kings Landing
• Finalized agreement for a residue natural gas pipeline connection for a new 1,350 MW gas-fired power generation facility owned by Competitive Power Ventures, Inc. ("CPV")
• Executed new five-year liquefied natural gas ("LNG") pricing agreement with INEOS Energy ("INEOS") for a total of 0.5 million tonnes per annum ("MTPA") at Port Arthur LNG
• Secured additional natural gas transport capacity to the U.S. Gulf Coast to meet growing customer demand

CEO Commentary

"Kinetik achieved a significant milestone in the third quarter of 2025 with the full commercial in-service of Kings Landing, adding critical processing capacity in New Mexico," said Jamie Welch, Kinetik's President & Chief Executive Officer. "The additional processing capacity is a significant step for our Delaware North customers, returning new volumes behind our system that had been curtailed for up to two years while also enabling resumption of development plans and new activity across the system. And today, we announced FID on the AGI project at Kings Landing, further positioning Kinetik to capture the significant sour gas opportunity in the Northern Delaware."

"The Permian continues to stand out - it remains one of the lowest cost sources of incremental hydrocarbons globally, and its producers continue to extract efficiency gains as they do more with less. That said, the Permian is not fully insulated from the current commodity headwinds. Delaware Basin rig count is down nearly 20% since the start of the year, and the Permian experienced substantial production shut-ins as Waha natural gas prices were negative. Industry consultants' updated forecasts are corroborating what we are seeing from our customers, which is slowing producer activity that likely results in slightly slower Permian natural gas production growth. In the face of these volume-related headwinds, the Company's positioning within the Delaware Basin, upcoming natural gas liquids contract expirations, and backlog of low multiple, high return organic investments reinforce management's conviction in Kinetik's long-term value proposition."

Financial Highlights

Other Financial Updates

The Midstream Logistics segment generated Adjusted EBITDA¹ of $151 million, a 13% decrease year-over-year. For the three months ended September 30, 2025, Kinetik processed natural gas volumes of 1.84 Bcf/d, an 8% increase year-over-year. Third quarter 2025 results were negatively affected by the delayed start-up of Kings Landing with lower than expected volumes at the complex in August and September, Waha price-related production shut-ins due to capacity constraints on Permian-to-Gulf Coast residual natural gas pipelines, and higher cost of goods sold on the Delaware South system.

The Pipeline Transportation segment generated Adjusted EBITDA¹ of $95 million, a nearly 1% decrease year-over-year with mostly in-line performance at the Company's operated and non-operated assets.

The Company has repurchased $176 million⁸ of Class A common stock year to date under the existing Repurchase Program, of which $100 million was repurchased during the third quarter of 2025.

In October, Kinetik closed the sale of its 27.5% equity interest in EPIC Crude. Proceeds of over $500 million in net upfront cash paid down the Company's Revolving Credit Facility balance and ultimately will be utilized to fund attractive, mid-single digit organic growth and cost reduction projects over the next two years.

Outlook & Guidance

Kinetik now estimates full year 2025 Adjusted EBITDA¹ to be between $965 million and $1.005 billion as a result of the following:

• The slower than expected ramp to commercial in-service at Kings Landing in August and September;
• Several short-term producer development delays and existing production curtailments from crude-focused customers driven by ongoing weakness in crude oil pricing and highly negative short-term Waha natural gas prices due to scheduled and unscheduled Permian natural gas pipeline maintenance;
• Lower average commodity prices compared to Guidance assumptions; and
• Adjusted for the EPIC Crude sale closing in October.

The Company is tightening the 2025 Capital Guidance range to be between $485 million and $515 million, including the contingent consideration paid to Morgan Stanley Energy Partners in October 2025.

Kinetik plans to provide 2026 Adjusted EBITDA¹ and Capital Guidance with full year 2025 results in February 2026.

Strategic Projects & Commercial Update

Kinetik achieved full commercial in-service at Kings Landing in late September 2025. The new processing complex in Eddy County, New Mexico adds over 200 Mmcf/d of gas processing capacity. Construction progressed in the third quarter at the ECCC Pipeline which will connect the western portion of Kinetik's system between Eddy and Culberson counties. In-service is expected during the second quarter of 2026.

Adding to the projects currently in backlog, Kinetik reached FID on its AGI project at Kings Landing, enabling the Company to take high levels of H₂S and CO₂ at all three of the Delaware North processing complexes. The project in-service date is expected by year end 2026. In addition, commercial negotiations continue as the Company works toward finalizing the next stage of a processing capacity expansion at Kings Landing.

Kinetik is also pursuing scalable power solutions in the Permian Basin:

• Kinetik finalized an agreement with CPV to connect its owned and operated residue gas pipeline into the 1,350 MW CPV Basin Ranch Energy Center ("CPV Basin Ranch") in Ward County, Texas that will be used as one of the primary sources of residue natural gas supply for that plant. CPV Basin Ranch reached FID in October with expected in-service in 2029, and the capital for the Kinetik pipeline connection will be fully reimbursed by CPV.

Additionally, Kinetik executed new commercial arrangements to support Permian residue gas takeaway:

• A five-year LNG pricing agreement with INEOS at Port Arthur LNG, commencing in early 2027. Under the contract, Kinetik will deliver residue natural gas at a designated interconnect on the Permian Highway Pipeline, ultimately representing approximately 0.5 MTPA. The gas will be priced monthly based on the European TTF index, offering Kinetik producer customers further diversification of natural gas pricing. This agreement underscores Kinetik's differentiated service offering and its commitment to unique, innovative, and competitive solutions in the Permian Basin.
• Additional firm transport capacity to the U.S. Gulf Coast, which is expected to commence in 2028. This pipeline capacity enhances market access for Kinetik's Permian producers and reflects its continued support to address the critical takeaway constraints at the Waha Hub.

Conference Call & Webcast

Kinetik will host its third quarter 2025 results conference call on Thursday, November 6, 2025 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.

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.

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, sustainability goals and initiatives, technology adoption, portfolio monetization opportunities, growth, expansion, cost reduction and other capital projects and the timing and cost thereof, 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 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. Dividend Coverage Ratio is Distributable Cash Flow divided by total declared dividends.
3. Net of contributions in aid of construction and returns of invested capital from unconsolidated affiliates.
4. Net Debt is defined as total current and long-term debt, excluding deferred financing costs, less cash and cash equivalents.
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. 161.7 million shares, issued and outstanding shares as of September 30, 2025, is the sum of 64.1 million shares of Class A common stock and 97.6 million shares of Class C common stock.
8. Dollar value of Kinetik Class A common stock repurchased year to date as of October 31, 2025.