Key Highlights

  • Processed gas volumes reached a record 1.94 Bcf/d in the third quarter, while an additional estimated 25 MMcf/d of Volume was shut in because of Waha price-related factors.
  • Adjusted EBITDA totaled USD 278.1 million in the quarter and USD 810.1 million across nine months. For the year, the company projects the top of its USD 1.04 billion to USD 1.1 billion span.
  • Quarterly net income, including the noncontrolling interest, stood at USD 50.9 million, while distributable Cash Flow reached USD 213.7 million and free cash flow USD 87.5 million.
  • Leverage sits at 3.71x adjusted EBITDA, as net Debt of USD 3,943.0 million is set against USD 1,069.4 million of liquidity, and the quarterly Dividend is USD 0.81 a share.

Record Volumes and a Firmer Midstream Business

Kinetik Holdings (NYSE:KNTK) reported third-quarter results on November 4, 2026. The company runs a Permian-to-Gulf Coast midstream network in the Delaware Basin, offering gathering, compression, processing and treating for gas, Natural Gas liquids, Crude Oil and water. Midstream Logistics adjusted EBITDA rose 34% to USD 203.6 million, supported by system performance and favorable Commodity margins, although lower residue gas Marketing contributions offset part of the gain. Pipeline Transportation adjusted EBITDA slid 18% to USD 78.5 million, largely because of the EPIC Crude Holdings divestiture, along with higher fuel costs at Permian Highway Pipeline and reduced throughput at Shin Oak.

Guidance Nudged Higher as Capital Spending Undershoots Plan

Management now expects 2026 adjusted EBITDA at the top of its USD 1.04 billion to USD 1.1 billion range, pointing to stronger well results, better Equity volumes and commodity prices above its August assumptions. Capital expenditures are forecast roughly 5% below the August guidance of USD 560 million, mainly because of disciplined execution and project timing. Nine-month capital spending came to USD 327.9 million and free cash flow to USD 294.1 million. Dividend coverage was 1.61x for the quarter and 1.48x for nine months. The fourth-quarter processed volume target sits near 2.2 Bcf/d, and the company said margins and costs are beating its internal budget. With the first Lone Star NGL contract expiring October 31, 2026 and the second at year-end, management expects system optimization to add more meaningful Margin in 2027.

Kings Landing II Expansion, ECCC Pipeline and Leverage Watch

Kinetik lifted planned Kings Landing II processing capacity by more than 25% to 380 MMcf/d at an unchanged cost of about USD 260 million, with in-service targeted for mid-2028. It also made a final Investment decision on phase 1 of the ECCC Pipeline expansion, boosting capacity roughly 50% to about 225 MMcf/d, with service expected in mid-2027. New agreements have dedicated more than 30,000 gross acres since August, one of them carrying a firm minimum volume commitment. Kinetik also committed to long-haul residue gas capacity from the Waha Hub to the Gulf Coast beginning in 2029. Risks include Waha price swings, producer activity and net leverage of 3.71x, and the call is set for November 5, 2026.

Where Things Stand

Mostly volume growth and a firmer outlook, not a one-off. Kinetik Holdings (NYSE:KNTK) processed 1.94 Bcf/d, lifted Midstream Logistics EBITDA 34% and guided to the high end of its range. The trade-offs are a declining pipeline segment after the EPIC divestiture and net debt near USD 3.9 billion. Watch the roughly 2.2 Bcf/d fourth-quarter target, the Lone Star NGL contract expiries at year-end and the next processing expansion decision. The release gives no price reaction, EPS figure or consensus comparison.