Kinetik Reports Record Quarter and Outlines 2028 Expansion Plans
Kinetik Holdings Inc. (NYSE: KNTK) reported its strongest quarterly results in company history, with net income of $123.1 million for the second quarter ended June 30 and Adjusted EBITDA reaching $280.8 million. The midstream operator raised full-year guidance to a range of $1.04 billion to $1.1 billion due to strong performance in its Midstream Logistics segment, which saw a 35% year-over-year increase in Adjusted EBITDA despite flat natural gas volumes. Kinetik is leveraging this momentum for future growth with the Kings Landing II project, expected to boost sour gas processing capacity and total system throughput by mid-2028. The company also secured new Gulf Coast access agreements and expanded its pipeline infrastructure. However, challenges remain in other segments like Pipeline Transportation, which saw a 14% decline due to asset divestitures. Capital expenditures are rising sharply as Kinetik invests ahead of schedule for future projects, with net debt reaching $3.94 billion at quarter end and leverage ratio hitting 3.85 times EBITDA.
Topics: energy expansion_projects midstream