Kinetik posts Q1 loss on divestitures, price curtailments; adj EBITDA beats estimates

Kinetik Holdings

06/05/2026 21:47

Overview

U.S. midstream energy firm's Q1 Adjusted EBITDA rose, beating analyst expectations

Company posted Q1 net loss of $5.1 mln, impacted by divestiture and price curtailments

Kinetik affirmed full-year 2026 Adjusted EBITDA guidance and secured new long-term agreements

Outlook

Kinetik affirms 2026 Adjusted EBITDA guidance of $950 mln to $1,050 mln

Company maintains 2026 capital expenditures guidance at $450 mln to $510 mln

Processed gas volume growth for 2026 now seen at low- to mid-single-digit percentage

Result Drivers

MIDSTREAM LOGISTICS GROWTH - Higher fee and commodity margins, improved system performance, and wider Waha to Houston Ship Channel basis spreads drove Midstream Logistics segment growth, partly offset by Waha price-related curtailments

PIPELINE TRANSPORTATION DECLINE - Lower Pipeline Transportation segment results due to divestiture of EPIC Crude equity interest

LONG-TERM AGREEMENTS - Amended and new agreements in Texas and New Mexico extended contract terms, increased dedicated acreage, and are expected to boost annual Adjusted EBITDA

Company press release: ID:nBwMTTkwa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
-$5.10 mln
Q1 Adjusted EBITDA
Beat
$251.20 mln
$236.21 mln (14 Analysts)
Q1 Free Cash Flow
$101.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the oil & gas transportation services peer group is "buy"

Wall Street's median 12-month price target for Kinetik Holdings Inc is $51.00, about 1.1% above its May 5 closing price of $50.45

The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 26 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)