Kinetik Holdings Inc. (KNTK) SEC Filings & Earnings Calls

Loss of major shareholder influence

“ISQ no longer has the right to designate any directors to the Board, and each of the A&R SHA and the Voting Agreement terminated automatically as to ISQ.”

Geopolitical Energy Market Volatility

“Recent geopolitical developments in the Middle East, including the ongoing military conflict involving Iran, disruptions and uncertainty surrounding maritime traffic through the Strait of Hormuz and related impacts on global energy markets, have contributed to heightened volatility in crude oil, natural gas, and NGL pricing and increased uncertainty in globa”

Service Revenue Decline from Lower Gathered Volumes

“Service revenue for the three months ended June 30, 2026 decreased by $25.8 million, or 23%, to $86.9 million, compared to $112.7 million for the same period in 2025, driven by decreases in period-over-period gathered and processed gas volumes of 101.1 MMcf per day, or 5%, and 1.6 MMcf per day, or 0.1%, respectively.” · word for word

Litigation Costs

“General and administrative expenses increased by $8.6 million, or 14%, to $70.5 million for the six months ended June 30, 2026, compared to $61.8 million for the same period in 2025. The increase was mainly driven by an increase in litigation related fees of $12.0 million” · word for word

Waha price-related curtailments impacted volumes; estimated 250 MMcf/d shut-ins in Q2

“Flat year-over-year despite an estimated 250 MMcf/d of Waha price-related processed gas volume shut-ins.” · word for word

Pipeline Transportation segment EBITDA declined 14% YoY due to EPIC Crude divestiture

“Pipeline Transportation segment Adjusted EBITDA $83.0 million, a 14% decrease year-over-year, due to divestiture of EPIC Crude.”

Commodity Price Volatility and Geopolitical Risk

“Recent geopolitical developments in the Middle East, including the ongoing military conflict involving Iran, the closure of the Strait of Hormuz and related disruptions to global energy markets, each have contributed to heightened volatility in crude oil, natural gas, and NGL pricing and increased uncertainty in global supply chains.” · word for word

Legal and Litigation Costs

“General and administrative expenses increased by $6.6 million, or 18%, to $44.2 million for the three months ended March 31, 2026, compared to $37.6 million for the same period in 2025. The increase was mainly driven by an increase in legal fees of $9.0 million.” · word for word

Waha natural gas price volatility causing volume curtailments; revised volume growth assumptions lower.

“Year to date through April, the Waha Hub is even more oversupplied and volatile than our original expectations with Waha gas daily averaging negative $2.37 per Mmbtu.” · word for word

Geopolitical tensions in the Middle East introduce commodity price volatility, though fee-based model provides insulation.

“While geopolitical tensions in the Middle East have introduced near-term commodity price volatility, Kinetik's fee-based, domestic midstream business model provides meaningful insulation.” · word for word

Gas price-sensitive customers deferring 2026 activity; some pull-forward to early 2027.

“Gas price-sensitive customers have deferred some 2026 activity in response to negative Waha pricing.” · word for word

Commodity Price Volatility

“Persistent commodity price volatility, inflationary pressures, and moderated producer activity created a difficult operating backdrop.” · word for word

Producer Activity Moderation

“moderated producer activity created a difficult operating backdrop.” · word for word

Liquidity risk is low; the amendment extends the facility and provides flexibility. No covenant breach or distress indicated.

“Extension of termination date and accordion feature suggest proactive liquidity management.”

Waha gas price weakness caused production shut-ins; volumes down 8% vs expectations.

“Volumes down over 8% versus our expectations due to weak Waha gas pricing” · word for word

High leverage ratio of 3.9x Net Debt to Adjusted EBITDA.

“Net Debt to Adjusted EBITDA Ratio of 3.9x”

Geographic concentration in Permian Basin

“The majority of the Company’s operating assets are currently located in the Permian Basin, making it vulnerable to risks associated with operating in a single geographic area.” · word for word

Dependence on customer drilling activity

“Because of the natural decline in hydrocarbon production from existing wells, the Company’s success depends, in part, on its ability to maintain or increase hydrocarbon throughput volumes on its midstream systems, which depends on its customers’ levels of development and completion activity on its dedicated acreage.” · word for word

Commodity price exposure

“The Company’s exposure to commodity price risk may change over time and the Company cannot guarantee the terms of any existing or future agreements for its midstream services with its customers.” · word for word

Regulatory and climate change risk

“Legislation, executive orders and regulatory initiatives relating to climate change could have a material adverse effect on our business, demand for our services, financial condition, results of operations and cash flows, while potential physical effects of climate change could disrupt the Company’s operations, cause damage to its pipelines and other facilit” · word for word

Commodity price exposure

“The increase in volumes sold was partially offset by decreases in period-over-period NGL and condensate prices of $2.05 per barrel, or 10% and $8.87 per barrel, or 12%, respectively.” · word for word

Cost inflation

“Operating expenses increased by $20.3 million, or 36%, to $76.1 million for the three months ended September 30, 2025, compared to $55.8 million for the same period in 2024.” · word for word

Integration risk from acquisitions

“Integration costs $6,650 thousand for the three months ended September 30, 2025, compared to $2,540 thousand for the same period in 2024.”

Volume headwinds from producer activity slowdown and negative Waha prices; guidance cut reflects near-term uncertainty.

“Slower producer activity, production shut-ins, lower commodity prices, delayed Kings Landing ramp.”