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Mar 31
Kinetik Q1 2025 Earnings Report
Reported financial results for the quarter ended March 31, 2025
Key Takeaways
Kinetik reported solid first quarter 2025 results, exceeding internal estimates with a 7% year-over-year increase in Adjusted EBITDA driven by processed gas volume growth and margin expansion in the Midstream Logistics segment. The company progressed construction on the Kings Landing Complex and affirmed its 2025 Adjusted EBITDA and Capital Guidance ranges.
Generated net income of $19.3 million and Adjusted EBITDA of $250.0 million for the first quarter of 2025.
Achieved quarterly gas processed volumes of 1.80 Bcf/d, a 17% increase year-over-year.
Progressed construction on the Kings Landing Complex, with commissioning expected in six weeks and operations commencing in early Q3 2025.
Affirmed 2025 Adjusted EBITDA Guidance of $1.09 billion to $1.15 billion and Capital Guidance of $450 million to $540 million.
Kinetik
Kinetik
Forward Guidance
Kinetik anticipates annualized first half 2025 Adjusted EBITDA of approximately $1 billion and annualized fourth quarter 2025 Adjusted EBITDA of approximately $1.2 billion, expecting to be within the full year 2025 Adjusted EBITDA Guidance range of $1.09 billion to $1.15 billion and Capital Guidance range of $450 million to $540 million.
Positive Outlook
- Affirming 2025 Adjusted EBITDA Guidance range of $1.09 billion to $1.15 billion.
- Affirming 2025 Capital Guidance range of $450 million to $540 million.
- Anticipating annualized first half 2025 Adjusted EBITDA of approximately $1 billion.
- Expecting to reach annualized fourth quarter 2025 Adjusted EBITDA of approximately $1.2 billion.
- Announced an increase to the existing share repurchase program up to $500 million.
Challenges Ahead
- Current energy commodity price futures are lower than the commodity price assumptions underlying the Guidance.
- If actual prices for the balance of the year are consistent with current commodity price futures, full year Adjusted EBITDA would be negatively impacted by approximately $20 million.
- Development schedules recently received reflect a measured slowdown in activity later this year due to lower crude oil prices.
- Several well pads previously expected to be connected to the system during Q4 2025 are now expected in 2026.
- The Permian Basin will not be immune to the impact of lower commodity prices.