Kinetik ( (KNTK) ) has released its Q1 earnings. Here is a breakdown of the information Kinetik presented to its investors.
Kinetik Holdings Inc. is a fully integrated midstream C-corporation operating in the Delaware Basin, providing comprehensive services for natural gas, natural gas liquids, crude oil, and water, with a significant presence in Midland and Houston, Texas.
In its first quarter of 2025, Kinetik reported a net income of $19.3 million and an Adjusted EBITDA of $250 million, reflecting a 7% increase year-over-year. The company also achieved a 17% increase in gas processed volumes, reaching 1.80 Bcf/d, and made significant progress on the Kings Landing Complex in New Mexico, with operations expected to commence in the early third quarter of 2025.
Key financial highlights include a distributable cash flow of $157 million and a free cash flow of $120.4 million. Kinetik’s Board of Directors has authorized an increase in the share repurchase program to $500 million, demonstrating confidence in the company’s earnings growth and cash flow generation. Additionally, the company issued $250 million in sustainability-linked senior notes and renewed its accounts receivable securitization facility to $250 million.
Looking ahead, Kinetik maintains its 2025 Adjusted EBITDA guidance range of $1.09 billion to $1.15 billion, despite facing macroeconomic uncertainties such as potential tariff increases and fluctuating energy prices. The company remains focused on capitalizing on opportunities within the Permian Basin and is committed to maximizing shareholder value through strategic capital allocation and infrastructure development.
Kinetik’s management is optimistic about the company’s future, expecting a ramp-up in processed gas volumes and continued development in the Delaware Basin. The company is poised to navigate the current economic landscape while pursuing growth opportunities and maintaining financial flexibility.