| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 581.44 | 41.8% | 36.3% |
| Total Income | 581.44 | 41.8% | 36.3% |
| Expenditure | 447.46 | 8.1% | 28.1% |
| PBT | 137.54 | 2431.2% | 68.3% |
| Net Profit | 49.54 | 3066.5% | 109.5% |
| OPM | 23.04% | 23.98pp | 4.89pp |
| NPM | 8.52% | 8.93pp | 2.98pp |
| EPS | 0.65 | 1028.6% | 97.0% |
Kinetik Reports Record Second Quarter 2026 Results and Raises Full Year 2026 Guidance
06 Aug 2026 · 6 Aug, 3:39 pm
Summary
Kinetik Holdings Inc. reported record results for the second quarter of 2026, driven by strong operational execution and favorable commodity margins. The company has advanced several strategic initiatives, including the final investment decision for the Kings Landing II expansion and the placement of the ECCC Pipeline into service. Kinetik is raising its full-year 2026 Adjusted EBITDA guidance to a range of $1.04 billion to $1.1 billion, reflecting improved performance and outlook. Management expressed strong confidence in continued growth into 2027 and beyond, citing easing curtailments, accelerating customer activity, and growing U.S. natural gas demand.
Key Highlights
- 1
Kinetik reported record financial results for the quarter ended June 30, 2026, driven by operational execution, robust system performance, and commodity margin outperformance.
- 2
The company made a final investment decision for Kings Landing II (KLII), which will expand system processing capacity to 2.7 Bcf/d by 2028.
- 3
The ECCC Pipeline was placed into service, enhancing north-to-south system connectivity, with expansion plans underway for 2027.
- 4
Kinetik secured incremental firm Gulf Coast market access for residue gas, commencing in 2027, and executed new residue and natural gas liquids transport agreements.
- 5
The Board authorized long-lead equipment procurement for the next processing capacity expansion beyond KLII, anticipating accelerating customer development plans.
- 6
Full year 2026 Adjusted EBITDA guidance was raised to $1.04 billion - $1.1 billion, reflecting stronger volumes, improved margins, and operational performance.
- 7
Capital Expenditures guidance for 2026 was increased to approximately $560 million, driven by KLII, accelerated producer development, and expansion projects.
Management Comments
Jamie Welch
Kinetik delivered exceptional second quarter 2026 results, significantly exceeding expectations. Our performance during the quarter demonstrates the strength and resilience of our integrated business model, the quality and diversification of our asset footprint, and our continued strong operational performance, which enabled Kinetik to deliver the strongest financial results in Company history. We advanced numerous initiatives this quarter, including reaching final investment decision (“FID”) on KLII, completing the ECCC Pipeline with right-of-way procurement beginning for an anticipated 2027 expansion, and commencing drilling operations at the Kings Landing acid gas injection (“AGI”) well. Furthermore, we have initiated procurement of long-lead equipment for the next processing plant after KLII given updated development plans and new customer commitments. The increase to our 2026 Adjusted EBITDA1 guidance reflects not only outperformance in the first half of the year, but also an increase relative to original expectations for the remainder of the year. We now anticipate Adjusted EBITDA1 to be between $260 million and $270 million in the third quarter and $270 million to $280 million in the fourth quarter. Momentum is building across our system and is expected to be a strong tailwind into 2027. Curtailments have eased, customer activity is pulling forward, and the market increasingly recognizes the critical role the Permian Basin plays in meeting growing U.S. natural gas demand, anchored by LNG exports and data center developments. Kinetik is exceptionally well positioned to capitalize on this structural growth, reinforcing our tremendous confidence in 2027 and beyond.
Informational and educational content only. Not investment advice.