Description

Kinetik Holdings: A $988 Million EBITDA Base Faces Commodity Price Headwinds!

Kinetik Holdings reported mixed results for the full year 2025 amid ongoing challenges in the energy sector, including commodity price volatility, inflationary pressures, and subdued customer development activity. Despite these headwinds, the company managed to deliver year-over-year EBITDA growth, with adjusted EBITDA reaching $988 million, slightly above the midpoint of revised guidance. The fourth quarter saw adjusted EBITDA of $252 million and distributable cash flow of $152 million, while free cash flow was negative $12 million. Midstream Logistics contributed $173 million in adjusted EBITDA, up 15% year-over-year, driven by gas volume growth and marketing gains, partially offset by Waha price-related production curtailments. Pipeline Transportation segment adjusted EBITDA declined due to the sale of EPIC Crude, which generated approximately $500 million in proceeds used for debt reduction, enhancing liquidity and deleveraging.