Description

Kinetik Holdings Holds Its $950 Million To $1.05 Billion EBITDA Outlook — Here’s Why!

Kinetik reported record adjusted EBITDA of $251 million in the first quarter of 2026, exceeding the high end of its prior guidance range, supported by solid performance across its commercial, operational, and financial segments. Distributable cash flow stood at $181 million with free cash flow of $101 million. The Midstream Logistics segment drove growth with a 12% year-over-year increase to $179 million in adjusted EBITDA on largely flat volumes, benefiting from Gulf Coast takeaway capacity and favorable spread-based marketing gains that offset significant volume curtailments caused by negative regional gas prices. Conversely, the Pipeline Transportation segment saw adjusted EBITDA decline to $78 million, reflecting divestitures and lower throughput. Commercially, Kinetik extended and amended legacy contracts in New Mexico’s Durango region, consolidating agreements and expanding dedicated acreage, pushing contract durations into the late 2030s and increasing fee-based revenue exposure at the expense of some commodity risk.