Kinetik Reports Third Quarter 2026 Results
Kinetik Holdings Inc. (KNTK) filed an SEC Form 8-K — Results of Operations and Financial Condition. Kinetik Reports Third Quarter 2026 Results HOUSTON and MIDLAND, Texas, November 4, 2026 – Kinetik Holdings Inc. (NYSE: KNTK) (“ Kinetik ” or the “ Company ”) today reported financial and operating results for the quarter ended September 30, 2026. Kinetik reported net income inclu
How this was made
The 30-second read
Why it matters
The raised EBITDA guidance reflects stronger gas volumes and fee upside, likely supporting a positive price reaction.
Market read
The earnings release provides fresh guidance that could move KNTK and influence peers in the midstream sector.
What to watch
Capital expenditure reduction may limit future growth if projects are delayed.
Kinetik Reports Third Quarter 2026 Results
Third-quarter operating revenue, operating income, net income, Adjusted EBITDA, Distributable Cash Flow and Free Cash Flow were higher than the prior-year quarter, while record processed gas volumes supported Midstream Logistics growth and the company expects full-year Adjusted EBITDA at the high end of its guidance range.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total operating revenues, three months ended September 30, 2026GAAP | $569.4M | – | – |
| Service revenue, three months ended September 30, 2026GAAP | $116.6M | – | – |
| Product revenue, three months ended September 30, 2026GAAP | $447.9M | – | – |
| Other revenue, three months ended September 30, 2026GAAP | $4.90M | – | – |
| Cost of sales excluding depreciation and amortization, three months ended September 30, 2026GAAP | 300.3M | – | – |
| Operating expenses, three months ended September 30, 2026GAAP | 71.63M | – | – |
| Ad valorem taxes, three months ended September 30, 2026GAAP | 7.52M | – | – |
| General and administrative expenses, three months ended September 30, 2026GAAP | 22.38M | – | – |
| Depreciation and amortization expenses, three months ended September 30, 2026GAAP | 103.8M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $63.74M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | $54.71M | – | – |
| Equity in earnings of unconsolidated affiliates, three months ended September 30, 2026GAAP | 47.23M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $56.45M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | 5.53M | – | – |
| Net income including noncontrolling interest, three months ended September 30, 2026GAAP | $50.92M | – | – |
| Net income attributable to holders of Class A Common Stock, three months ended September 30, 2026GAAP | $22.09M | – | – |
| Net income attributable to holders of Class A Common Stock, per share basic, three months ended September 30, 2026GAAP | $ 0.26 | – | – |
| Net income attributable to holders of Class A Common Stock, per share diluted, three months ended September 30, 2026GAAP | $ 0.26 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $278.1M | – | – |
| Distributable Cash Flow, three months ended September 30, 2026non-GAAP | $213.7M | – | – |
| Free Cash Flow, three months ended September 30, 2026non-GAAP | $87.53M | – | – |
| Capital Expenditures, three months ended September 30, 2026other | $130.6M | – | – |
| Dividend Coverage Ratio, three months ended September 30, 2026non-GAAP | 1.61x | – | – |
| Total operating revenues, nine months ended September 30, 2026GAAP | $1.56B | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $193.9M | – | – |
| Net income including noncontrolling interest, nine months ended September 30, 2026GAAP | $168.9M | – | – |
| Net income attributable to holders of Class A Common Stock, per share basic, nine months ended September 30, 2026GAAP | $ 0.88 | – | – |
| Net income attributable to holders of Class A Common Stock, per share diluted, nine months ended September 30, 2026GAAP | $ 0.87 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $810.1M | – | – |
| Distributable Cash Flow, nine months ended September 30, 2026non-GAAP | $589.5M | – | – |
| Free Cash Flow, nine months ended September 30, 2026non-GAAP | $294.1M | – | – |
| Capital Expenditures, nine months ended September 30, 2026other | $327.9M | – | – |
| Dividend Coverage Ratio, nine months ended September 30, 2026non-GAAP | 1.48x | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $614.4M | – | – |
| Net debt, September 30, 2026non-GAAP | $3.94B | – | – |
| Leverage Ratio, September 30, 2026non-GAAP | 3.70x | – | – |
| Net Debt to Adjusted EBITDA Ratio, September 30, 2026non-GAAP | 3.71x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Midstream Logistics, three months ended September 30, 2026Adjusted EBITDA was $203.6 million, a 34% increase year-over-year. Results benefited from record processed natural gas volumes, continued strength in system operating performance and favorable commodity margins realized, partially offset by a reduction in residue gas marketing contributions. | $ 564,509 (In thousands), Total segment operating revenue | – | – |
| Pipeline Transportation, three months ended September 30, 2026Adjusted EBITDA was $78.5 million, an 18% decrease year-over-year, primarily due to the EPIC Crude Holdings, LP divestiture, and to a lesser extent higher fuel costs at Permian Highway Pipeline and lower throughput volumes at Shin Oak. | $ 11,598 (In thousands), Total segment operating revenue | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
full year 2026 outlook
- NoteAdjusted EBITDA expected to be at the high end of the $1.04 billion to $1.1 billion guidance range.
- NoteCapital Expenditures (including maintenance) anticipated to be approximately 5% below its August 2026 guidance of $560 million.
- NoteProcessed gas volumes are tracking toward the approximately 2.2 Bcf/d fourth quarter 2026 target.
Capital returns
- Quarterly dividend per share: $ 0.81.
- Dividend Coverage Ratio: 1.61x for the three months ended September 30, 2026.
- 162.4 million shares, issued and outstanding shares as of September 30, 2026, comprising 80.5 million shares of Class A common stock and 81.9 million shares of Class C common stock.
What drove it
- Record processed gas volumes of 1.94 Bcf/d in the third quarter of 2026, with an additional estimated 25 MMcf/d of Waha price-related gas volume that was shut-in.
- All Delaware North processing facilities, including Kings Landing, operated at full capacity for much of the third quarter of 2026; the ECCC Pipeline transported surplus volumes to the Delaware South system.
- Gas gathering and processing fee benefited from stronger-than-expected well results, operating performance yielded stronger-than-expected equity volumes, and commodity prices outperformed the company's August 2026 guidance assumptions.
- Kinetik increased planned Kings Landing II processing capacity by more than 25% to 380 MMcf/d while expected capital cost remained unchanged at approximately $260 million.
- More than 30,000 gross acres were dedicated to Kinetik since the beginning of August through new and amended gathering and processing agreements in New Mexico and Texas.
Concerns
- Pipeline Transportation Adjusted EBITDA decreased 18% year-over-year, primarily due to the EPIC Crude Holdings, LP divestiture, with higher fuel costs at Permian Highway Pipeline and lower throughput volumes at Shin Oak also contributing.
- Third-quarter results were partially offset by a reduction in residue gas marketing contributions.
- An estimated 25 MMcf/d of Waha price-related gas volume was shut-in during the third quarter of 2026.
- Net debt was $ 3,942,976 (In thousands) and the Net Debt to Adjusted EBITDA Ratio was 3.71x as of September 30, 2026.
What to watch
- Processed gas volumes tracking toward the approximately 2.2 Bcf/d fourth quarter 2026 target.
- Completion of the Kings Landing acid gas injection and sour gas conversion project by year-end.
- ECCC Pipeline expansion phase 1 procurement and construction expected to commence in early 2027, with in-service anticipated mid-2027.
- Kings Landing II is on track for a mid-2028 in-service date.
- First flow under recently executed gathering and processing agreements is anticipated in the second and third quarters of 2027.
- The remaining Lone Star NGL contract in Texas expires at year-end; Kinetik forecasts more meaningful system-optimization margin contributions in 2027 than previously expected.
Balance sheet and cash flow
- Cash and cash equivalents: $7.0 million as of September 30, 2026.
- Revolving Credit Facility availability: $1,062.4 million as of September 30, 2026.
- Liquidity (Cash and Revolver Availability): $ 1,069,424 (In thousands).
- Total debt: $ 3,950,000 (In thousands) as of September 30, 2026.
- Net debt: $ 3,942,976 (In thousands) as of September 30, 2026.
- Net cash provided by operating activities: $ 614,387 (In thousands) for the nine months ended September 30, 2026.
- Free Cash Flow: $ 87,531 (In thousands) for the three months ended September 30, 2026 and $ 294,115 (In thousands) for the nine months ended September 30, 2026.
Analysis
Kinetik reported a stronger third quarter across its principal financial measures. Total operating revenues were $ 569,401 (In thousands), compared with $ 463,969 (In thousands) in the prior-year quarter. Operating income was $ 63,738 (In thousands), compared with $ 19,787 (In thousands), while net income including noncontrolling interest was $ 50,922 (In thousands), compared with $ 15,549 (In thousands). Adjusted EBITDA rose to $ 278,144 (In thousands) from $ 242,634 (In thousands), and Free Cash Flow was $ 87,531 (In thousands), compared with $ 13,903 (In thousands).
Operating momentum was concentrated in Midstream Logistics. The segment generated $ 203.6 million of Adjusted EBITDA, up 34% year-over-year, supported by record processed gas volumes of 1.94 Bcf/d. Kinetik cited continued strength in system operating performance and favorable commodity margins realized, although reduced residue gas marketing contributions were a partial offset. Delaware North processing facilities, including Kings Landing, operated at full capacity for much of the quarter, with the ECCC Pipeline moving surplus volumes to Delaware South.
Pipeline Transportation was the counterweight. Segment Adjusted EBITDA was $ 78.5 million, down 18% year-over-year. The company attributed the decline primarily to the EPIC Crude Holdings, LP divestiture, and also cited higher fuel costs at Permian Highway Pipeline and lower Shin Oak throughput volumes. At the consolidated level, nine-month net cash provided by operating activities was $ 614,387 (In thousands), while nine-month Free Cash Flow was $ 294,115 (In thousands).
Capital deployment remains directed toward processing, treating and pipeline capacity. Kinetik increased KLII planned capacity by more than 25% to 380 MMcf/d without changing expected capital cost of approximately $260 million. It also reached FID on phase 1 of the ECCC Pipeline expansion, intended to increase throughput capacity by roughly 50% to approximately 225 MMcf/d. The company expects 2026 capital expenditures, including maintenance, to be approximately 5% below its August guidance of $560 million, citing disciplined execution and project-spend timing.
The outlook is constructive. Kinetik expects full-year 2026 Adjusted EBITDA at the high end of its $1.04 billion to $1.1 billion guidance range, reflecting stronger-than-expected well results, stronger-than-expected equity volumes and commodity prices outperforming August assumptions. Balance-sheet measures showed net debt of $ 3,942,976 (In thousands), liquidity of $ 1,069,424 (In thousands), a 3.70x Leverage Ratio and a 3.71x Net Debt to Adjusted EBITDA Ratio as of September 30, 2026. The $ 0.81 quarterly dividend per share was covered 1.61x by Distributable Cash Flow in the quarter.
Management, verbatim
Kinetik delivered another strong quarter with record processed gas volumes underscoring the strength and increasing scale of our business.
Jamie Welch, President & Chief Executive Officer
The momentum we have built throughout the year has continued into the fourth quarter. Producer activity remains strong, processed gas volumes are tracking toward our approximately 2.2 Bcf/d fourth quarter 2026 target, and margins and costs continue to outperform our internal budget expectations.
Jamie Welch, President & Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Non-GAAP EPS was not reported.
- Prior-quarter comparisons were not reported for the income-statement metrics.
- A total repurchase amount was not reported.
- A prior earnings-release outlook section was not provided; therefore, no comparison of actual results with prior guidance is included.
- Full-year 2026 revenue, gross margin, operating-expense and tax-rate guidance were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
KNTK filed an SEC Form 8‑K reporting its third‑quarter 2026 financial results and updated outlook.
Ticker impact
KNTK reported Q3 2026 results with net income $50.9M and updated guidance, expecting full‑year Adjusted EBITDA at the high end of its $1.04B‑$1.1B range.
likely upward pressure as the market prices in higher EBITDA expectations
The company’s record gas volumes and higher fee outlook support the raised guidance, which should attract buying interest.
Market effects
Midstream gas processing sector may see broader optimism from KNTK’s volume growth.
Permian Basin producers could benefit from increased processing capacity.
Limited to U.S. energy and midstream markets.
Counterpoint
If gas price volatility rises, higher capacity could lead to over‑supply and margin pressure.
Key entities
- CompanyKinetik Holdings Inc.
Midstream gas gathering and processing firm listed on NYSE.
