$KNTK

Kinetik Holdings Inc.

CIK:0001692787|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Jun. 30, 2026

Jun. 30, 2025

Operating revenues:

Total revenues

$ 581,440

$ 426,738

$ 991,416

$ 870,001

Operating costs and expenses:

Costs of sales (excluding depreciation and amortization)

^[1],[2]

237,592

156,697

426,316

380,061

Operating expenses

71,922

68,045

142,223

131,648

Ad valorem taxes

8,393

6,559

17,168

13,350

General and administrative expenses

26,261

24,244

70,461

61,836

Depreciation and amortization expenses

103,331

93,763

205,164

186,436

Gain on disposal of assets, net

(36)

(25)

(55)

(65)

Total operating costs and expenses

447,463

349,283

861,277

773,266

Operating income

133,977

77,455

130,139

96,735

Other income (expense):

Interest and other income

297

2,732

464

3,517

Loss on debt extinguishment

(635)

Interest expense

(54,121)

(56,514)

(107,541)

(112,228)

Equity in earnings of unconsolidated affiliates

57,383

58,705

108,571

116,183

Total other income, net

3,559

4,288

1,494

6,837

Income before income taxes

137,536

81,743

131,633

103,572

Income tax expense

14,423

7,327

13,645

9,894

Net income including noncontrolling interest

123,113

74,416

117,988

93,678

Net income attributable to Common Unit limited partners

73,574

50,771

70,116

63,903

Net income attributable to holders of Class A Common Stock

$ 49,539

$ 23,645

$ 47,872

$ 29,775

Net income attributable to holders of Class A Common Stock, per share

Basic (in USD per share)

$ 0.65

$ 0.33

$ 0.62

$ 0.38

Diluted (in USD per share)

$ 0.64

$ 0.33

$ 0.61

$ 0.38

Weighted-average shares

Basic (in shares)

75,138

61,721

70,550

60,946

Diluted (in shares)

75,812

62,228

71,449

61,693

Service revenue

Operating revenues:

Total revenues

$ 86,891

$ 112,654

$ 180,663

$ 240,580

Product revenue

Operating revenues:

Total revenues

490,800

311,590

803,033

624,095

Other revenue

Operating revenues:

Total revenues

$ 3,749

$ 2,494

$ 7,720

$ 5,326

[1]	Costs of sales (excluding depreciation and amortization) is net of gas service revenues totaling $110.6 million and $73.6 million for the three months ended June 30, 2026 and 2025, respectively, and $212.8 million and $135.8 million for the six months ended June 30, 2026 and 2025, respectively, for certain volumes where we function as principal.
[2]	Includes amounts associated with related parties of $8.2 million and $7.0 million for the three months ended June 30, 2026 and 2025, respectively, and $15.4 million and $11.7 million for the six months ended June 30, 2026 and 2025, respectively.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income including noncontrolling interest	$ 117,988	$ 93,678
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	205,164	186,436
Amortization of deferred financing costs	3,913	3,984
Amortization of contract costs	4,004	3,310
Distributions from unconsolidated affiliates	130,222	126,941
Derivative settlement	(27,262)	(5,657)
Derivative fair value adjustment	18,829	(15,370)
Gain on disposal of assets, net	(55)	(65)
Equity in earnings of unconsolidated affiliates	(108,571)	(116,183)
Loss on debt extinguishment	0	635
Share-based compensation	29,727	30,348
Deferred income taxes	13,643	9,409
Changes in operating assets and liabilities:
Accounts and pledged receivable	(35,457)	(73)
Other assets	(5,281)	(5,525)
Accounts payable	(8,316)	(9,846)
Accrued liabilities	17,390	(19,142)
Other non-current liabilities	(14,332)	22,436
Operating leases	(86)	591
Net cash provided by operating activities	341,520	305,907
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment expenditures	(192,263)	(201,840)
Intangible asset expenditures	(12,096)	(15,567)
Investments in unconsolidated affiliates	0	(985)
Distributions from unconsolidated affiliates	0	2,853
Cash proceeds from disposal of assets	120	98
Net cash paid for acquisition	0	(176,163)
Net cash used in investing activities	(204,239)	(391,604)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowing under A/R Facility	83,900	73,300
Payments on A/R Facility	(24,100)	(24,200)
Proceeds from borrowings on long-term debt	0	1,400,000
Payments on long-term debt	0	(1,000,000)
Payments of debt issuance costs, net	(152)	(10,689)
Payments of debt discount, net	0	(1,200)
Proceeds from revolving line of credit	302,000	1,126,000
Payments on revolving line of credit	(232,000)	(1,151,000)
Cash dividends paid to Class A Common Stock shareholders	(112,146)	(94,950)
Distributions paid to Class C Common Unit limited partners	(150,904)	(151,883)
Repurchase of Class A Common Stock	0	(72,554)
Net cash (used in) provided by financing activities	(133,402)	92,824
Net change in cash	3,879	7,127
CASH, BEGINNING OF PERIOD	3,951	3,606
CASH, END OF PERIOD	7,830	10,733
SUPPLEMENTAL SCHEDULE OF INVESTING AND FINANCING ACTIVITIES
Cash paid for interest, net of amounts capitalized	104,725	103,441
Cash paid for income taxes, net	0	2,410
Property and equipment and intangible accruals in accounts payable and accrued liabilities	50,327	67,212
Right-of-use assets obtained in exchange for lease liabilities	0	17,732
Class A Common Stock issued through dividend and distribution reinvestment plan	1,087	724
Fair value of assets acquired in business combinations	0	191,815
Cash consideration paid	0	176,163
Liabilities assumed	$ 0	$ 15,652

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
CURRENT ASSETS:
Cash and cash equivalents	$ 7,830	$ 3,951
Accounts receivable, net of allowance for credit losses of $1,000 in 2026 and 2025	60,933	85,276
Accounts receivable pledged	225,000	165,200
Derivative assets	19,792	13,906
Prepaid and other current assets	36,134	33,703
Current assets	349,689	302,036
NONCURRENT ASSETS:
Property, plant and equipment, net	3,943,428	3,866,236
Intangible assets, net	493,561	553,230
Derivative asset, non-current	4,043	1,467
Operating lease right-of-use assets	50,110	71,147
Deferred tax assets	281,570	197,702
Deferred charges and other assets	87,918	89,991
Investments in unconsolidated affiliates	1,987,074	2,008,725
Goodwill	5,077	5,077
Noncurrent assets	6,852,781	6,793,575
Total assets	7,202,470	7,095,611
CURRENT LIABILITIES:
Accounts payable	48,643	42,067
Accrued expenses	173,055	172,050
Derivative liabilities	5,110	5,506
Current portion of operating lease liabilities	35,502	43,614
Current debt obligations	225,000	165,200
Other current liabilities	25,086	12,064
Current liabilities	512,396	440,501
NONCURRENT LIABILITIES
Long term debt, net	3,700,562	3,627,720
Contract liabilities	37,823	30,959
Operating lease liabilities	16,022	29,033
Derivative liabilities	425	0
Other liabilities	385	14,717
Deferred tax liabilities	22,815	22,299
Noncurrent liabilities	3,778,032	3,724,728
Total liabilities	4,290,428	4,165,229
COMMITMENTS AND CONTINGENCIES (Note 16)
Redeemable noncontrolling interest — Common Unit limited partners	4,097,184	3,495,762
EQUITY:
Additional paid-in capital	494,989	240,725
Accumulated deficit	(1,680,147)	(806,121)
Total equity	(1,185,142)	(565,380)
Total liabilities, noncontrolling interest and equity	7,202,470	7,095,611
Common Class A
EQUITY:
Common stock	8	6
Common Class C
EQUITY:
Common stock	$ 8	$ 10