# EDGAR Filing Document

**Accession Number:** 0001692787
**File Stem:** 0001692787-25-000047
**Filing Date:** 2025-8
**Character Count:** 33552
**Document Hash:** b4e06255f8814e3876f5548034b23919
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001692787-25-000047.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0001692787-25-000047

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20250806

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250806

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Kinetik Holdings Inc.
- **CENTRAL INDEX KEY:** 0001692787
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATURAL GAS TRANSMISSION [4922]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 814675947
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38048
- **FILM NUMBER:** 251190949

**BUSINESS ADDRESS:**
- **STREET 1:** 2700 POST OAK BLVD.
- **STREET 2:** SUITE 300
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77056
- **BUSINESS PHONE:** 713-621-7330

**MAIL ADDRESS:**
- **STREET 1:** 2700 POST OAK BLVD.
- **STREET 2:** SUITE 300
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77056

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Altus Midstream Co
- **DATE OF NAME CHANGE:** 20181113

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Kayne Anderson Acquisition Corp
- **DATE OF NAME CHANGE:** 20161220

?xml version='1.0' encoding='ASCII'? apa-20250806

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**___________________________________**

**FORM 8-K**

**___________________________________**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)**

**of the Securities Exchange Act of 1934**

**August 6, 2025**

**Date of Report (date of earliest event reported)**

**___________________________________**

![Kinetik Logo.jpg](apa-20250806_g1.jpg)

**Kinetik Holdings Inc.**

**(Exact name of registrant as specified in its charter)**

**___________________________________**

---

| | | |
|:---|:---|:---|
| **Delaware**<br>**(State or other jurisdiction of** <br>**incorporation or organization)** | **001-38048**<br>**(Commission File Number)** | **81-4675947**<br>**(I.R.S. Employer Identification Number)** |
| **2700 Post Oak Blvd. Suite 300**<br>**Houston, Texas 77056** | **2700 Post Oak Blvd. Suite 300**<br>**Houston, Texas 77056** | **2700 Post Oak Blvd. Suite 300**<br>**Houston, Texas 77056** |
| **(Address of principal executive offices and zip code)** | **(Address of principal executive offices and zip code)** | **(Address of principal executive offices and zip code)** |
| **(713) 621-7330** | **(713) 621-7330** | **(713) 621-7330** |
| **(Registrant's telephone number, including area code)** | **(Registrant's telephone number, including area code)** | **(Registrant's telephone number, including area code)** |

---

**___________________________________**

**Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:**

**☐** **Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)**

**☐** **Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)**

**☐** **Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))**

**☐** **Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))**

---

| | | |
|:---|:---|:---|
| **Securities registered pursuant to Section 12(b) of the Act:** | **Securities registered pursuant to Section 12(b) of the Act:** | **Securities registered pursuant to Section 12(b) of the Act:** |
| **<u>Title of each class</u>** | **<u>Trading Symbol</u>** | **<u>Name of each exchange on which registered</u>** |
| **Class A Common Stock, par value $0.0001 per share** | **KNTK** | **New York Stock Exchange** |

---

**Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.**

Emerging growth company ☐

**If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.** ☐

------

**Item 2.02. Results of Operations and Financial Condition**

On August 6, 2025, Kinetik Holdings Inc. issued a press release announcing financial and operating results for the fiscal quarter ended June 30, 2025. The full text of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.

The information in this Current Report on Form 8-K, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of Section 18, and shall not be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as set forth by specific reference in such filing.

**Item 9.01. Financial Statements and Exhibits.**

(d) The following exhibits are being filed herewith.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description of Exhibit** |
| 99.1 | <u>[Press Release of Kinetik Holdings Inc. dated](kntkex991pressreleaseq22025.htm)</u> August 6, 2025 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

*&nbsp;&nbsp;&nbsp;&nbsp;*

---

| | | |
|:---|:---|:---|
| | | **Kinetik Holdings Inc.** |
| Dated: | August 6, 2025 | /s/ Steven Stellato |
| | | Steven Stellato |
| | | Executive Vice President, Chief Accounting and Chief Administrative Officer |

---

## Exhibit 99.1

![picture2.gif](picture2.gif)

**Kinetik Reports Second Quarter 2025 Financial and Operating Results and Updates Full Year 2025 Guidance**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Generated second quarter net income of $74.4 million and Adjusted EBITDA<sup>1</sup> of $242.9 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Commenced commissioning at the Kings Landing Complex ("**Kings Landing**") with full commercial in-service expected in late September 2025, providing long overdue relief for producers with material curtailed production on the Delaware North system and allowing for resumption of new development activity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Updating the Company's 2025 Adjusted EBITDA<sup>1</sup> Guidance range to $1.03 billion to $1.09 billion

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Continue to expect fourth quarter 2025 annualized Adjusted EBITDA<sup>1,2</sup> of approximately $1.2 billion &nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Narrowing the 2025 Capital Guidance range to $460 million to $530 million, including growth and maintenance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Began construction of the ECCC Pipeline, connecting the western portion of Kinetik's system between Eddy and Culberson counties and providing further critical rich gas takeaway capacity relief for the Delaware North system

HOUSTON and MIDLAND, Texas, August 6, 2025 – Kinetik Holdings Inc. (NYSE: KNTK) ("**Kinetik**" or the "**Company**") today reported financial results for the quarter ended June 30, 2025.

**<u>Second Quarter 2025 Results and Commentary</u>**

For the three and six months ended June 30, 2025, Kinetik reported net income including noncontrolling interest of $74.4 million and $93.7 million, respectively.

Kinetik generated Adjusted EBITDA<sup>1</sup> of $242.9 million and $493.0 million, Distributable Cash Flow<sup>1</sup> of $153.3 million and $310.3 million, and Free Cash Flow<sup>1</sup> of $7.9 million and $128.3 million for the three and six months ended June 30, 2025, respectively. For the three months ended June 30, 2025, Kinetik processed natural gas volumes of 1.75 Bcf/d.

"Kinetik navigated both successes and challenges in the second quarter of 2025," said Jamie Welch, Kinetik's President & Chief Executive Officer. "First and foremost, I am incredibly proud of our team's focus on operational execution and meeting our customers' needs during a period marked with macroeconomic uncertainty and market volatility. For the quarter, we reported Adjusted EBITDA<sup>1</sup> of $243 million with processed gas volumes growing 11% year-over-year. That growth was partially offset by lower commodity pricing and higher operating costs."

"Kinetik's earnings trajectory remains weighted to the second half of 2025 with the full in-service of Kings Landing. The associated return of curtailed production and customer development activity at Delaware North will result in material processed gas volume growth throughout the fourth quarter of this year and into 2026."

Welch continued, "With the expected in-service timing for Kings Landing, some delays in producer development activity to early 2026, as well as commodity price headwinds and associated operating cost increases, particularly relating to rental equipment and electricity, we are updating our full year 2025 Adjusted EBITDA<sup>1</sup> Guidance range to $1.03 billion to $1.09 billion."

"Capital Expenditures<sup>3</sup> were $126 million in the second quarter as we started commissioning Kings Landing. We now anticipate Capital Expenditures<sup>3</sup> to be more weighted to the third quarter of 2025 driven by timing of Kings Landing completion. We are narrowing full year Capital Guidance to $460 million to $530 million, including growth and maintenance Capital Expenditures<sup>3</sup> and any contingent consideration tied to the final cost of Kings Landing."

"Looking ahead, Management remains confident in Kinetik's value proposition as we continue to see numerous commercial opportunities with both new and existing customers that are highly synergistic to our existing footprint and accretive to our business in 2026 and beyond."

------

**<u>Financial</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Achieved quarterly net income of $74.4 million and Adjusted EBITDA<sup>1</sup> of $242.9 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Repurchased $172.6 million<sup>4</sup> of Class A common stock year to date under the existing Repurchase Program, of which $72.6 million was repurchased during the second quarter of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Completed refinancing of the Company's Term Loan A and Revolving Credit Facility, extending maturities to May 30, 2028 and May 30, 2030, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Exited the quarter with a Leverage Ratio<sup>1,5</sup> per the Company's Credit Agreement of 3.6x and a Net Debt to Adjusted EBITDA<sup>1,6</sup> Ratio of 4.0x.

**<u>Selected Key Metrics</u>**

---

| | | |
|:---|:---|:---|
| | **Three Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2025** |
| | **(In thousands, except ratios)** | **(In thousands, except ratios)** |
| Net income including noncontrolling interest | $74416 | $93678 |
| Adjusted EBITDA<sup>1</sup> | $242933 | $492950 |
| Distributable Cash Flow<sup>1</sup> | $153303 | $310284 |
| Dividend Coverage Ratio<sup>1,7</sup> | 1.2x | 1.2x |
| Capital Expenditures<sup>3</sup> | $126267 | $204341 |
| Free Cash Flow<sup>1</sup> | $7882 | $128275 |
| Leverage Ratio<sup>1,5</sup> |  | 3.6x |
| Net Debt to Adjusted EBITDA Ratio<sup>1,6</sup> |  | 4.0x |
| Common stock issued and outstanding<sup>8</sup> |  | 156322 |

---

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **March 31, 2025** |
| | **(In thousands)** | **(In thousands)** |
| Net Debt<sup>1,9</sup> | $3943567 | $3734955 |

---

**<u>Operational and Construction</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Commenced commissioning at Kings Landing with full commercial in-service expected in late September 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Construction started on ECCC Pipeline with in-service expected during the first half of 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Filed acid gas injection permit for Kings Landing with approval expected by the end of 2025.

**<u>Governance and Sustainability</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Listed Kinetik's common stock on NYSE Texas while maintaining its primary listing on the New York Stock Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Published 2024 Sustainability Report highlighting the Company's sustainability initiatives, progress, and achievements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Infinium commenced construction on Project Roadrunner, an ultra-low carbon electrofuels production site, in Reeves County, Texas. Kinetik will be the long-term CO2 feedstock provider upon expected completion in 2027.

------

**<u>Upcoming Tour Dates</u>**

Kinetik plans to participate at the following upcoming conferences and events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Citi Natural Resources Conference in Las Vegas on August 12th - 13th

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Barclays CEO Energy-Power Conference in New York on September 3rd

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.PEP Energy Conference in Austin on September 29th

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Wolfe Utilities, Midstream & Clean Energy Conference in New York on September 30th

**<u>Investor Presentation</u>**

An updated investor presentation will be available under Events and Presentations in the Investors section of the Company's website at www.ir.kinetik.com.

**<u>Conference Call and Webcast</u>**

Kinetik will host its second quarter 2025 results conference call on Thursday, August 7, 2025 at 8:00 am Central Daylight Time (9:00 am Eastern Daylight Time) to discuss second quarter results. To access a live webcast of the conference call, please visit the Investors section of Kinetik's website at www.ir.kinetik.com. A replay of the conference call will also be available on the website following the call.

**<u>About Kinetik Holdings Inc.</u>**

Kinetik is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation operating in the Delaware Basin. Kinetik is headquartered in Houston and Midland, Texas. Kinetik provides comprehensive gathering, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water. Kinetik posts announcements, operational updates, investor information and press releases on its website, www.kinetik.com.

**<u>Contacts</u>** 

Kinetik Investors:

Alex Durkee

(713) 574-4743

investors@kinetik.com

**<u>Forward-looking statements</u>** 

This news release includes certain statements that may constitute "forward-looking statements" for purposes of the federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "seeks," "possible," "potential," "predict," "project," "prospects," "guidance," "outlook," "should," "would," "will," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about the Company's future business strategy and plans, expectations, and objectives for the Company's operations, including statements about strategy, synergies, sustainability goals and initiatives, portfolio monetization opportunities, expansion projects and the timing thereof, and future operations, and financial guidance; growth opportunities; the amount and timing of future shareholder returns; the Company's projected dividend amounts and the timing thereof; and the Company's leverage and financial profile. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties, which could cause our actual results, performance, and financial condition to differ materially from our expectations. See Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not

------

possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future development, or otherwise, except as may be required by law.

**<u>Additional information</u>**

Additional information follows, including a reconciliation of Adjusted EBITDA, Distributable Cash Flow, Free Cash Flow, and Net Debt (non-GAAP financial measures) to the GAAP measures.

**<u>Non-GAAP financial measures</u>**

Kinetik's financial information includes information prepared in conformity with generally accepted accounting principles (GAAP) as well as non-GAAP financial information. It is management's intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP. Adjusted EBITDA, Distributable Cash Flow, Free Cash Flow, Dividend Coverage Ratio, Net Debt and Leverage Ratio are non-GAAP measures. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated. See "Reconciliation of GAAP to Non-GAAP Measures" elsewhere in this news release. This news release also includes certain forward-looking non-GAAP financial information. Reconciliations of these forward-looking non-GAAP measures to their most directly comparable GAAP measure are not available without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various reconciling items that would impact the most directly comparable forward-looking GAAP financial measure, that have not yet occurred, are out of Kinetik's control and/or cannot be reasonably predicted. Accordingly, such reconciliation is excluded from this new release. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.A non-GAAP financial measure. See "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Measures" for further details.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.A reconciliation of expected full year or annualized fourth quarter 2025 Adjusted EBITDA to net income (loss), the closest GAAP financial measure, cannot be provided without unreasonable efforts due to the inherent difficulty in quantifying certain amounts, including share-based compensation expense, which is affected by factors including future personnel needs and the future prices of our Class A Common Stock, which may be significant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Net of contributions in aid of construction and returns of invested capital from unconsolidated affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Dollar value of Kinetik Class A common stock repurchased year to date as of August 6, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Leverage Ratio is total debt less cash and cash equivalents divided by last twelve months Adjusted EBITDA, calculated per the Company's credit agreement. The calculation includes EBITDA Adjustments for Qualified Projects, Acquisitions and Divestitures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.Net Debt to Adjusted EBITDA Ratio is defined as Net Debt divided by last twelve months Adjusted EBITDA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.Dividend Coverage Ratio is Distributable Cash Flow divided by total declared dividends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.Issued and outstanding shares of 156,322,500 is the sum of 63,545,388 shares of Class A common stock and 92,777,112 shares of Class C common stock. Excludes 7,680,492 shares of Class C common stock issued on July 1, 2025 in connection with the Durango Permian acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.Net Debt is defined as total current and long-term debt, excluding deferred financing costs, less cash and cash equivalents.

------

**KINETIK HOLDINGS INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **(In thousands, except per share data)** | **(In thousands, except per share data)** | **(In thousands, except per share data)** | **(In thousands, except per share data)** |
| Operating revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Service revenue | $112654 | $96415 | $240580 | $198610 |
| &nbsp;&nbsp;&nbsp;Product revenue | 311590 | 260102 | 624095 | 496669 |
| &nbsp;&nbsp;&nbsp;Other revenue | 2494 | 2940 | 5326 | 5572 |
| Total operating revenues | 426738 | 359457 | 870001 | 700851 |
| Operating costs and expenses: |  |  |  |  |
| &nbsp;&nbsp;Costs of sales (excluding depreciation and amortization) <sup>(1)</sup> | 156697 | 146513 | 380061 | 300200 |
| &nbsp;&nbsp;&nbsp;Operating expenses | 68045 | 44068 | 131648 | 87474 |
| &nbsp;&nbsp;&nbsp;Ad valorem taxes | 6559 | 6212 | 13350 | 12504 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 24244 | 31091 | 61836 | 65227 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization expenses | 93763 | 75061 | 186436 | 148667 |
| &nbsp;&nbsp;&nbsp;(Gain) loss on disposal of assets, net | (25) | (76) | (65) | 4090 |
| Total operating costs and expenses | 349283 | 302869 | 773266 | 618162 |
| Operating income | 77455 | 56588 | 96735 | 82689 |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest and other income | 2732 | 309 | 3517 | 400 |
| &nbsp;&nbsp;&nbsp;Loss on debt extinguishment | (635) | (525) | (635) | (525) |
| &nbsp;&nbsp;&nbsp;Gain on sale of equity method investment |  | 59884 |  | 59884 |
| &nbsp;&nbsp;&nbsp;Interest expense | (56514) | (54049) | (112228) | (101516) |
| &nbsp;&nbsp;&nbsp;Equity in earnings of unconsolidated affiliates | 58705 | 55955 | 116183 | 116424 |
| Total other income, net | 4288 | 61574 | 6837 | 74667 |
| &nbsp;&nbsp;&nbsp;Income before income taxes | 81743 | 118162 | 103572 | 157356 |
| Income tax expense | 7327 | 9214 | 9894 | 13001 |
| Net income including noncontrolling interest | 74416 | 108948 | 93678 | 144355 |
| &nbsp;&nbsp;&nbsp;Net income attributable to Common Unit limited partners | 50771 | 71756 | 63903 | 95613 |
| Net income attributable to holders of Class A Common Stock | $23645 | $37192 | $29775 | $48742 |
| Net income attributable to holders of Class A Common Stock, per share |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.33 | $0.54 | $0.38 | $0.68 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.33 | $0.54 | $0.38 | $0.67 |
| Weighted-average shares |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic | 61721 | 59792 | 60946 | 58840 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted | 62228 | 60279 | 61693 | 59503 |

---

(1)Cost of sales (exclusive of depreciation and amortization) is net of gas service revenues totaling $73.6 million and $54.7 million for the three months ended June 30, 2025 and 2024, respectively, and $135.8 million and $99.2 million for the six months ended June 30, 2025 and 2024, respectively, for certain volumes, where we act as principal.

------

**KINETIK HOLDINGS INC.**

**RECONCILIATION OF GAAP TO NON-GAAP MEASURES** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(In thousands)** | **(In thousands)** | **(In thousands)** | **(In thousands)** |
| **Net Income Including Noncontrolling Interests to Adjusted EBITDA** |  |  |  |  |
| Net income including noncontrolling interest (GAAP) | $74416 | $108948 | $93678 | $144355 |
| Add back: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 56514 | 54049 | 112228 | 101516 |
| &nbsp;&nbsp;&nbsp;Income tax expense | 7327 | 9214 | 9894 | 13001 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization expenses | 93763 | 75061 | 186436 | 148667 |
| &nbsp;&nbsp;&nbsp;Amortization of contract costs | 1655 | 1655 | 3310 | 3310 |
| &nbsp;&nbsp;&nbsp;Proportionate EBITDA from unconsolidated affiliates | 88100 | 85922 | 175630 | 174324 |
| &nbsp;&nbsp;&nbsp;Share-based compensation | 9695 | 15136 | 30348 | 37697 |
| &nbsp;&nbsp;&nbsp;(Gain) loss on disposal of assets, net | (25) | (76) | (65) | 4090 |
| &nbsp;&nbsp;&nbsp;Loss on debt extinguishment | 635 | 525 | 635 | 525 |
| &nbsp;&nbsp;&nbsp;Commodity hedging unrealized loss |  |  |  | 6883 |
| &nbsp;&nbsp;&nbsp;Integration costs | 2433 | 2510 | 5971 | 2551 |
| &nbsp;&nbsp;&nbsp;Acquisition transaction costs |  | 3232 |  | 3232 |
| &nbsp;&nbsp;&nbsp;Other one-time costs or amortization | 5186 | 2581 | 11792 | 5006 |
| Deduct: |  |  |  |  |
| &nbsp;&nbsp;Interest income | 318 | 310 | 1108 | 887 |
| &nbsp;&nbsp;&nbsp;Gain on sale of equity method investment |  | 59884 |  | 59884 |
| &nbsp;&nbsp;&nbsp;Commodity hedging unrealized gain | 37743 | 8205 | 19616 |  |
| &nbsp;&nbsp;&nbsp;Equity income from unconsolidated affiliates | 58705 | 55955 | 116183 | 116424 |
| **Adjusted EBITDA**<sup>(1)</sup> (non-GAAP) | $242933 | $234403 | $492950 | $467962 |
| **Distributable Cash Flow**<sup>(2)</sup> |  |  |  |  |
| Adjusted EBITDA (non-GAAP) | $242933 | $234403 | $492950 | $467962 |
| Proportionate EBITDA from unconsolidated affiliates | (88100) | (85922) | (175630) | (174324) |
| Returns on invested capital from unconsolidated affiliates | 63604 | 75429 | 126941 | 152642 |
| Interest expense | (56514) | (54049) | (112228) | (101516) |
| Unrealized gain on interest rate swaps | (741) | (189) | (1411) | (9566) |
| Maintenance capital expenditures | (7879) | (6780) | (20338) | (17780) |
| **Distributable cash flow** (non-GAAP) | $153303 | $162892 | $310284 | $317418 |
| **Free Cash Flow**<sup>(3)</sup> |  |  |  |  |
| Distributable cash flow (non-GAAP) | $153303 | $162892 | $310284 | $317418 |
| Cash interest adjustment | (22476) | (29144) | 10197 | (29395) |
| Realized (loss) gain on interest rate swaps | (2) | 3953 | (344) | 7905 |
| Growth capital expenditures | (123498) | (32160) | (189210) | (80413) |
| Capitalized interest | (4555) | (986) | (7859) | (1930) |
| Investments in unconsolidated affiliates | (97) |  | (985) | (3273) |
| Returns of invested capital from unconsolidated affiliates | 2293 |  | 2853 | 1240 |
| Contributions in aid of construction | 2914 | 894 | 3339 | 1408 |
| **Free cash flow** (non-GAAP) | $7882 | $105449 | $128275 | $212960 |

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**KINETIK HOLDINGS INC.**

**RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)**

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| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** |
| | **(In thousands)** | **(In thousands)** |
| **Reconciliation of net cash provided by operating activities to Adjusted EBITDA** |  |  |
| Net cash provided by operating activities | $305907 | $279222 |
| Net changes in operating assets and liabilities | 11559 | 49046 |
| Interest expense | 112228 | 101516 |
| Amortization of deferred financing costs | (3984) | (3582) |
| Current income tax expense | 485 | 610 |
| Returns on invested capital from unconsolidated affiliates | (126941) | (152642) |
| Proportionate EBITDA from unconsolidated affiliates | 175630 | 174324 |
| Derivative fair value adjustment and settlement | 21027 | 2683 |
| Commodity hedging unrealized (gain) loss | (19616) | 6883 |
| Interest income | (1108) | (887) |
| Integration costs | 5971 | 2551 |
| Acquisition transaction costs |  | 3232 |
| Other one-time cost or amortization | 11792 | 5006 |
| **Adjusted EBITDA**<sup>(1)</sup> (non-GAAP) | $492950 | $467962 |
| **Distributable Cash Flow**<sup>(2)</sup> |  |  |
| Adjusted EBITDA (non-GAAP) | $492950 | $467962 |
| Proportionate EBITDA from unconsolidated affiliates | (175630) | (174324) |
| Returns on invested capital from unconsolidated affiliates | 126941 | 152642 |
| Interest expense | (112228) | (101516) |
| Unrealized gain on interest rate swaps | (1411) | (9566) |
| Maintenance capital expenditures | (20338) | (17780) |
| **Distributable cash flow** (non-GAAP) | $310284 | $317418 |
| **Free Cash Flow**<sup>(3)</sup> |  |  |
| Distributable cash flow (non-GAAP) | $310284 | $317418 |
| Cash interest adjustment | 10197 | (29395) |
| Realized (loss) gain on interest rate swaps | (344) | 7905 |
| Growth capital expenditures | (189210) | (80413) |
| Capitalized interest | (7859) | (1930) |
| Investments in unconsolidated affiliates | (985) | (3273) |
| Returns of invested capital from unconsolidated affiliates | 2853 | 1240 |
| Contributions in aid of construction | 3339 | 1408 |
| **Free cash flow** (non-GAAP) | $128275 | $212960 |

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**KINETIK HOLDINGS INC.**

**RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)**

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| | | |
|:---|:---|:---|
| | **June 30,**<br>**2025** | **March 31,**<br>**2025** |
| | **(In thousands)** | **(In thousands)** |
| **Net Debt**<sup>(4)</sup> |  |  |
| Short-term debt | $189300 | $148800 |
| Long-term debt, net | 3736972 | 3568457 |
| Plus: Debt issuance costs, net | 28028 | 26543 |
| Total debt | 3954300 | 3743800 |
| Less: Cash and cash equivalents | 10733 | 8845 |
| **Net debt** (non-GAAP) | $3943567 | $3734955 |

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(1) Adjusted EBITDA is defined as net income including noncontrolling interest adjusted for interest, taxes, depreciation and amortization, gain or loss on disposal of assets and debt extinguishment, the proportionate EBITDA from our EMI pipelines, share-based compensation expense, noncash increases and decreases related to commodity hedging activities, integration and transaction costs and extraordinary losses and unusual or non-recurring charges. Adjusted EBITDA provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted EBITDA should not be considered as an alternative to the GAAP measure of net income including non-controlling interest or any other measure of financial performance presented in accordance with GAAP.

(2) Distributable Cash Flow is defined as Adjusted EBITDA, adjusted for the proportionate EBITDA from unconsolidated affiliates, returns on invested capital from unconsolidated affiliates, interest expense, net of amounts capitalized, unrealized gains or losses on interest rate swaps and maintenance capital expenditures. Distributable Cash Flow should not be considered as an alternative to the GAAP measure of net income including non-controlling interest or any other measure of financial performance presented in accordance with GAAP. We believe that Distributable Cash Flow is a useful measure to compare cash generation performance from period to period and to compare the cash generation performance for specific periods to the amount of cash dividends we make.

(3) Free Cash Flow is defined as Distributable Cash Flow adjusted for growth capital expenditures, investments in unconsolidated affiliates, returns of invested capital from unconsolidated affiliates, cash interest, capitalized interest, realized gains or losses on interest rate swaps and contributions in aid of construction. Free Cash flow should not be considered as an alternative to the GAAP measure of net income including non-controlling interest or any other measure of financial performance presented in accordance with GAAP. We believe that Free Cash Flow is a useful performance measure to compare cash generation performance from period to period and to compare the cash generation performance for specific periods to the amount of cash dividends that we make.

(4) Net Debt is defined as total short-term and long-term debt, excluding deferred financing costs, premiums and discounts, less cash and cash equivalents. Net Debt illustrates our total debt position less cash on hand that could be utilized to pay down debt at the balance sheet date. Net Debt should not be considered as an alternative to the GAAP measure of total long-term debt, or any other measure of financial performance presented in accordance with GAAP.