Kinetik Holdings Inc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −5.20%.
Did KNTK Beat Earnings? Q4 2025 Results
Kinetik Holdings delivered a headline-grabbing Q4 2025 earnings beat, though the story behind the numbers requires important context. The Permian Basin midstream operator posted EPS of $2.16 against a consensus estimate of just $0.33, a 554.55% beat driven almost entirely by a $415.41 million one-time gain on the sale of its equity interest in EPIC Crude Holdings, which closed October 31, 2025. Revenue of $430.42 million grew 11.6% year over year but fell 9.19% short of the $473.99 million consensus, with weak Waha Hub natural gas pricing triggering production shut-ins that cut volumes more than 8% below management expectations. Operationally, the Midstream Logistics segment posted solid 15% Adjusted EBITDA growth to $173.08 million, while full-year record Adjusted EBITDA reached $987.70 million. Questions about the durability of underlying margins have surfaced given the non-recurring profit driver. Looking ahead, Kinetik guided 2026 Adjusted EBITDA to $950 million to $1.05 billion, representing 7% growth at the midpoint, with improving natural gas fundamentals expected as approximately 5 Bcf/d of new Permian takeaway capacity comes online by early 2027.
- Midstream Logistics Adjusted EBITDA increased 15% year-over-year to $173.1 million in Q4
- Gulf Coast marketing gains partially offset Waha price-related production shut-ins
- Gas processed volumes of 1.79 Bcf/d, a 3% increase year-over-year
- $415.4 million gain on sale of equity interest in EPIC Crude Holdings
- Record full-year Adjusted EBITDA of $987.7 million
“2025 was a year of challenges and strategic progress for Kinetik as we navigated a difficult operating environment.”
Kinetik CEO, on the earnings call
Forward Guidance & Outlook
Kinetik issued 2026 full-year guidance with Adjusted EBITDA of $950 million to $1,050 million, representing 7% growth year-over-year at the midpoint (excluding EPIC Crude contributions). Capital expenditures are guided at $450 million to $510 million, with approximately 70% allocated to New Mexico. The midpoint assumes high single-digit percentage growth in gas processed volumes, ECCC Pipeline in-service during Q2 2026, Kings Landing AGI and sour conversion project in-service by year-end 2026, and specific commodity price assumptions. The company anticipates continued volatility for much of 2026 but expects tailwinds from operating leverage and improving natural gas fundamentals as approximately 5 Bcf/d of new Permian takeaway capacity comes online by end of Q1 2027. Beyond 2026, management sees material earnings growth from NGL contract expirations, volume growth, enhanced sour gas treating, cost optimization, and improving basis differentials.
KNTK YoY Financials
KNTK Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.