Kinetik

Kinetik (KNTK) Q1 2025 Earnings

Reported May 7, 2025 at 4:49 PM ET · SEC Source

Q1 25 EPS

$0.05

MISS 85.91%

Est. $0.35

Q1 25 Revenue

$443.3M

BEAT +10.15%

Est. $402.4M

vs S&P Since Q1 25

-6.2%

TRAILING MARKET

KNTK +26.8% vs S&P +33.0%

Market Reaction

Did KNTK Beat Earnings? Q1 2025 Results

Kinetik Holdings posted a quietly encouraging first quarter for 2025, with revenue of $443.26 million and earnings per share of $0.05 as the midstream operator navigated winter weather disruptions and a volatile macro backdrop that CEO Jamie Welch ac… Read more Kinetik Holdings posted a quietly encouraging first quarter for 2025, with revenue of $443.26 million and earnings per share of $0.05 as the midstream operator navigated winter weather disruptions and a volatile macro backdrop that CEO Jamie Welch acknowledged had tested the business. The quarter's standout metric was a 7% year-over-year increase in Adjusted EBITDA to $250.02 million, driven by a 17% surge in gas processed volumes to 1.80 Bcf/d, with the return to production at Alpine High providing meaningful sequential lift. GAAP net income fell to $19.26 million from $35.41 million a year ago, pressured by rising depreciation, amortization, and interest costs tied to the company's expanding infrastructure footprint. Looking ahead, Kinetik affirmed its full-year 2025 Adjusted EBITDA guidance of $1.09 billion to $1.15 billion, framing the year as a tale of two halves, with volumes expected to ramp materially once the Kings Landing Complex in New Mexico begins operations in early Q3, though softer commodity prices could trim full-year Adjusted EBITDA by approximately $20 million if sustained.

Key Takeaways

  • 17% year-over-year growth in gas processed volumes to 1.80 Bcf/d
  • Margin expansion in the Midstream Logistics segment
  • Return to production at Alpine High driving sequential volume growth
  • Fee-based and take-or-pay contract structures providing revenue visibility
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KNTK YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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KNTK Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q1 26

“The start to 2025 has been marked with early successes, macroeconomic uncertainty, and the prospect of exciting potential opportunities. Despite winter weather and the recent, elevated volatility, Kinetik is pleased to report another solid quarter that slightly exceeded our internal estimates. Adjusted EBITDA of $250 million represents a 7% increase year-over-year driven by growth in processed gas volumes and margin expansion in the Midstream Logistics segment. Processed gas volumes were up sequentially, largely driven by the return to production at Alpine High.”

— Jamie Welch, Q1 2025 Earnings Press Release