Kinetik Holdings Crushes Q1, Locks in Durable Earnings

Kinetik Holdings delivers exceptional Q1 results, with record adjusted EBITDA of $251 million, surpassing expectations. This success is attributed to strategic commercial deals, robust operations, and prudent financial management. Despite global macro shifts, the company maintains strong financial performance. Commercially, Kinetik secures new customers and amends contracts in Texas and New Mexico, increasing dedicated acreage by 25% on a key deal. Seventy-five percent of legacy volumes are now extended into the mid to late thirties with improved margins. Operations remain stable, with safety as a priority. The ECCC pipeline is nearing completion, and the Kings Landing sour conversion is underway for year-end 2026 service. Producers face challenges due to low Waha hub prices, leading to shut-ins and increased drilling activity. However, Kinetiks Gulf Coast takeaway shields them from volume hits, turning them into margin wins. The company affirms full-year 2026 EBITDA guidance at $950 million to $1.05 billion, with capex remaining at $450 to $510 million. Higher NGL and crude prices, along with hedges and cost optimizations, contribute to this outlook. Power gen tie-ins like Pecos Power add zero-capex fees. While near-term Waha volatility exists, Kinetiks new Permian takeaway capacity ensures durable earnings through the decade. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/f3022d736232e976