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Jun 30
Kinetik Q2 2025 Earnings Report
Kinetik reported its second quarter 2025 financial and operating results, including net income of $74.4 million and Adjusted EBITDA of $242.9 million, and updated its full year 2025 guidance.
Key Takeaways
Kinetik experienced mixed results in Q2 2025, with strong processed gas volume growth of 11% year-over-year, but faced headwinds from lower commodity pricing and higher operating costs. The company generated $74.4 million in net income and $242.9 million in Adjusted EBITDA. Commissioning of the Kings Landing Complex began, with full commercial in-service expected in late September 2025, which is anticipated to drive significant volume growth in the latter half of the year.
Net income for Q2 2025 was $74.4 million, with Adjusted EBITDA reaching $242.9 million.
Processed natural gas volumes grew by 11% year-over-year, reaching 1.75 Bcf/d.
Commissioning of the Kings Landing Complex commenced, with full commercial in-service anticipated by late September 2025, expected to alleviate curtailed production and enable new development.
The company updated its full year 2025 Adjusted EBITDA guidance to a range of $1.03 billion to $1.09 billion and narrowed its capital guidance to $460 million to $530 million.
Kinetik
Kinetik
Forward Guidance
Kinetik updated its full year 2025 Adjusted EBITDA guidance to $1.03 billion to $1.09 billion and narrowed its capital guidance to $460 million to $530 million. The company expects annualized Adjusted EBITDA of approximately $1.2 billion in Q4 2025, driven by the full in-service of Kings Landing.
Positive Outlook
- Full commercial in-service of Kings Landing Complex expected in late September 2025, providing relief for producers and allowing new development.
- Expected material processed gas volume growth throughout Q4 2025 and into 2026 due to Kings Landing.
- Anticipated fourth quarter 2025 annualized Adjusted EBITDA of approximately $1.2 billion.
- Construction began on the ECCC Pipeline, providing critical rich gas takeaway capacity relief.
- Management remains confident in Kinetik’s value proposition with numerous synergistic commercial opportunities for 2026 and beyond.
Challenges Ahead
- Updated 2025 Adjusted EBITDA guidance range due to expected in-service timing for Kings Landing.
- Delays in producer development activity are anticipated to shift to early 2026.
- Commodity price headwinds impacted earnings.
- Higher operating costs, particularly relating to rental equipment and electricity, affected profitability.
- Capital Expenditures are now anticipated to be more weighted to the third quarter of 2025.