Kinetik Holdings Inc - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did KNTK Beat Earnings? Q3 2025 Results
Kinetik delivered a tale of two metrics in Q3 2025, posting revenue of $463.97 million that topped the $430.81 million consensus by 7.70% and grew 17.1% year-over-year, while earnings fell sharply short, with GAAP diluted EPS of just $0.03 missing the $0.28 consensus estimate by 89.26%. The most material drag was a combination of higher costs of sales, elevated operating expenses, and the absence of a $29.95 million gain on an equity method investment that had padded year-ago results, compressing net income to $15.55 million from $83.65 million a year earlier. Adjusted EBITDA also slipped to $242.63 million from $265.68 million, weighed down by a delayed commercial ramp-up at the Kings Landing Complex and producer curtailments tied to weak commodity prices and deeply negative Waha natural gas pricing. Looking ahead, management trimmed full-year 2025 Adjusted EBITDA guidance to a range of $965 million to $1.00 billion, citing those same headwinds alongside the closed EPIC Crude divestiture, with analysts already scrutinizing whether new projects can deliver the stable profits Kinetik's long-term investment case requires.
- Natural gas processing volumes of 1.84 Bcf/d, an 8% increase year-over-year
- Midstream Logistics Adjusted EBITDA decreased 13% YoY due to delayed Kings Landing start-up, Waha price-related production shut-ins, and higher COGS on Delaware South system
- Pipeline Transportation Adjusted EBITDA nearly flat YoY
- Higher product revenue driven by increased volumes and gas service revenues
- Negative impact from commodity headwinds and capacity constraints on Permian-to-Gulf Coast residue natural gas pipelines
“Kinetik achieved a significant milestone in the third quarter of 2025 with the full commercial in-service of Kings Landing, adding critical processing capacity in New Mexico. The additional processing capacity is a significant step for our Delaware North customers, returning new volumes behind our system that had been curtailed for up to two years while also enabling resumption of development plans and new activity across the system. And today, we announced FID on the AGI project at Kings Landing, further positioning Kinetik to capture the significant sour gas opportunity in the Northern Delaware.”
Kinetik CEO, on the earnings call
Forward Guidance & Outlook
Kinetik revised full-year 2025 Adjusted EBITDA guidance to $965 million to $1.005 billion, reflecting the slower-than-expected ramp to commercial in-service at Kings Landing in August and September, several short-term producer development delays and production curtailments from crude-focused customers driven by weakness in crude oil pricing and highly negative Waha natural gas prices, lower average commodity prices versus prior assumptions, and the October closing of the EPIC Crude divestiture. Capital guidance was refined to $485 million to $515 million, including growth, maintenance, and the contingent consideration paid to Morgan Stanley Energy Partners in October. The company plans to provide 2026 Adjusted EBITDA and Capital Guidance with full-year 2025 results in February 2026.
KNTK YoY Financials
KNTK Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.