Kinetik Holdings Q3FY26: Record volumes, KL2 upsized, 2027 growth seen

Kinetik (KNTK) expects its integrated system to reach full utilization by 2027, with capacity expansions and new processing facilities. The company signed agreements for 30,000 gross dedicated acres, anticipating first flows in 2027. Kinetik revised its 2027 margin expectations upwards, now forecasting over 50% above previous estimates. Capital spending for 2026 is expected to be 5% below earlier estimates. Net debt was $3.9 billion at quarter-end, with leverage at 3.7 times.

Kinetik Holdings Inc. aims to process 2.2 billion cubic feet of gas daily in Q4 2026, with adjusted EBITDA nearing the high end of its annual guidance. CEO Jamie Welch cited record gas volumes and improved producer activity for Q3 results. The company expects 2023 capex to be 5% below its $560 million guidance and full system utilization by late 2027.

Kinetik Holdings Inc (KNTK) reported record volumes and upsized its KL2 project. CEO Jamie Welch expects volume growth to double, with processing capacity additions accelerating. The company plans to maintain dividend growth within 3% to 5% annually. Management highlighted opportunities in the Woodford and Penn Shale formations, anticipating significant gas growth. They also discussed stable producer activity and potential gas-directed drilling in the Permian.

Kinetik reported 3Q 2026 revenue of $569.4M, up year over year, driven by higher NGL and condensate sales volumes and prices. Net income attributable to Class A shareholders was $0.26 per diluted share. Midstream Logistics EBITDA rose 34%, while Pipeline Transportation EBITDA fell 18% due to divestiture impacts. The ECCC Pipeline was completed and entered service in June 2026, according to the company.

Kinetik Holdings (KNTK) reported Q3 2026 adjusted EBITDA of $278M, up 34% YoY in Midstream Logistics. The company expanded processing capacity and signed new agreements, expecting full system utilization by late 2027. They forecast high-end EBITDA for 2026, with capital expenditures 5% below guidance. Kinetik plans to maintain dividend coverage at 1.6x before increasing it in line with earnings.

Kinetik reported Q3 2026 net income of $50.9 million, revenue of $569.4 million, and Adjusted EBITDA of $278.1 million. The company expects full-year Adjusted EBITDA at the high end of its $1.04B-$1.1B guidance range. Processed gas volumes reached a record 1.94 Bcf/d, and Kinetik announced expansions and new agreements.