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Kinetik

Kinetik (KNTK) Q1 2026 Earnings

Reported May 6, 2026 at 5:43 PM ET · SEC Source

Q1 26 EPS

$-0.07

MISS 129.26%

Est. $0.24

Q1 26 Revenue

$410.0M

MISS 6.41%

Est. $438.0M

vs S&P Since Q1 26

-0.9%

TRAILING MARKET

KNTK +2.3% vs S&P +3.2%

Market Reaction

Did KNTK Beat Earnings? Q1 2026 Results

Kinetik Holdings Inc. Delivered a disappointing first quarter for fiscal 2026, missing on both the top and bottom lines as a steep $46.99 million unrealized commodity hedging loss and sharply lower service revenue weighed on results. The Permian Basi… Read more Kinetik Holdings Inc. Delivered a disappointing first quarter for fiscal 2026, missing on both the top and bottom lines as a steep $46.99 million unrealized commodity hedging loss and sharply lower service revenue weighed on results. The Permian Basin midstream operator posted an adjusted EPS of negative $0.07, falling well short of the $0.24 consensus estimate by 129.26%, while revenue came in at $409.98 million, missing expectations by 6.41% and sliding 7.5% from the year-ago period's $443.26 million. Service revenue bore much of the burden, dropping to $93.77 million from $127.93 million a year earlier, contributing to a GAAP net loss of $5.13 million versus net income of $19.26 million in Q1 2025. Waha Hub oversupply proved more severe than anticipated, with curtailments now estimated at 220 Mmcf/d against an original assumption of 100 Mmcf/d, prompting Kinetik to revise its volume growth outlook to low- to mid-single digits; nonetheless, the company affirmed full-year Adjusted EBITDA guidance of $950 million to $1.05 billion, citing wider Permian-to-Gulf Coast differentials as a meaningful offset. Notably, an affiliate tied to I Squared Capital has been steadily reducing its stake in recent months through open-market share sales, adding a layer of headline noise around the quarter.

Key Takeaways

  • • Stronger than expected system operating performance in Midstream Logistics
  • • Higher fee and commodity margins
  • • Lower unit operating costs
  • • Wider Waha to Houston Ship Channel basis spreads
  • • Gulf Coast transportation position offsetting Waha price-related curtailments
  • • Lower fuel costs and higher fee gross margin in Permian Highway Pipeline and Kinetik NGL

KNTK Forward Guidance & Outlook

Kinetik affirmed full-year 2026 Adjusted EBITDA guidance of $950 million to $1,050 million and capital expenditures guidance of $450 million to $510 million (including maintenance). Year-over-year processed gas volume growth is now estimated at low- to mid-single-digit percentage points, revised from original assumptions due to more severe Waha Hub oversupply. The company now estimates approximately 220 Mmcf/d of Waha price-related curtailments versus the original assumption of approximately 100 Mmcf/d. Despite these curtailments, management noted that Gulf Coast transportation positions more than offset the impact by capitalizing on wider Permian-to-Gulf Coast price differentials. Producer activity is expected to pull forward into early 2027, supported by more than 5 Bcf/d of new Permian egress capacity expected in-service by early 2027, with an additional approximately 6 Bcf/d anticipated in 2028 and 2029.

24/7 Wall St

KNTK YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

KNTK Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q1 26

“Kinetik delivered a strong start to 2026, reflecting the strategic positioning of the business, as well as successful commercial and operational execution. Accounting for the divestiture of our stake in EPIC Crude Holdings LP, first quarter 2026 Adjusted EBITDA of $251 million represents a new quarterly record for the Company. Our financial performance was above internal expectations and reinforces our confidence in our 2026 guidance.”

— Jamie Welch, Q1 2026 Earnings Press Release

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