Earnings Analysis November 4, 2026

Kinetik Holdings Inc ($KNTK) Q3 2026 Earnings Analysis: Revenue Beat · Annual Guidance Aiming for Upper End

Earnings Report

Revenue: $569.4 million (Q3 2026, +22.7% YoY, vs. $544 million expected) ✅ Beat

EPS (Earnings Per Share): GAAP diluted $0.26 (Q3 2026); the $0.56 expected figure is based on adjusted metrics, making direct comparison impossible (Indeterminate)

Guidance: Maintained (outlook at the upper end of the range); 2026 adjusted EBITDA is projected at the upper end of the previous $1.04 billion–$1.1 billion range; capital expenditures reduced by approximately 5% from the previous $560 million

Stock Reaction: After-hours -5.04% ($48.59, as of 07:09 Nov 05 KST)

Highlights

23% Revenue Growth: Q3 2026 revenue reached $569.4 million, up 22.7% from the same period last year.

Record Processed Gas: Surpassed previous records at 1.94 billion cubic feet per day.

Upper End of Annual Guidance: The company directly provided an outlook at the upper end of the $1.04 billion–$1.1 billion adjusted EBITDA range.

Midstream logistics adjusted EBITDA was $203.6 million, a 34% increase year-over-year. Dividend coverage was 1.61x against a quarterly dividend of $0.81.

Lowlights

Pipeline Segment -18%: Adjusted EBITDA was $78.51 million, directly caused by the sale of EPIC Crude Holdings.

$54.71 million Interest Expense: Offset most of the $63.74 million operating income during the same period.

25 million cubic feet per day interruption: Volume that could not be processed due to Waha pricing.

Net income attributable to Class A common stock was $22.09 million, up from $5.27 million in the same period last year. Net income including non-controlling interests was $50.92 million.

What Management Said

CEO Jamie Welch stated that processed gas volumes reached an all-time high and that volumes are increasing toward a target of approximately 2.2 billion cubic feet per day in the fourth quarter. The company noted that costs and margins are exceeding internal budgets and projected that annual adjusted EBITDA will reach the upper end of the existing guidance range.

Market Reaction and Future Key Points

Although revenue exceeded expectations and the annual guidance was presented at the upper end of the previous range, after-hours shares fell 5.04%. It was also confirmed that adjusted EBITDA in the pipeline segment decreased by 18% year-over-year for the same quarter.

It remains to be seen whether the Q4 2026 processed gas volume actually reaches the target of approximately 2.2 billion cubic feet per day.

We must monitor whether the completion schedules for the Kingsland Phase 2 (KLII) expansion and the ECCC pipeline expansion are met.

The key factor is when the 25 million cubic feet per day that was suspended due to Waha pricing will be restored.

Earnings Call Summary

Once the company script is released following the earnings call, the key takeaways from the call will be added here. We will select and summarize only the most important points, such as how management explained the results and guidance and what analysts asked.