Kinetik Holdings Inc.: A clearer path forward

研报英文原文证据摘录

Kinetik Holdings Inc.: A clearer path forward

Barclays | Kinetik Holdings Inc.

More imminently, we look for an earnings step-up in 3Q from KNTK's first NGL T&F contract

roll-off. With current market rates of ~7-8 CPG, we think re-contracting will support

meaningful cost savings longer term. In tandem with the anticipated volumetric growth,

these factors could drive adj. EBITDA from ~$230mm–$240mm in 1Q/2Q to ~$260mm–

$270mm in 3Q/4Q.

• In 2Q26, we look for adj. EBITDA of $242mm vs. consensus of $247mm. We expect

Midstream Logistics adj. EBITDA of $169mm, reflecting a slight downtick in processed

volumes q/q due to likely higher curtailments. From here, we expect continued volumetric

growth across KNTK's system, and once ECCC enters service, we anticipate a margin step-up

from the handling of incremental sour barrels. We also expect Pipeline Transportation adj.

EBITDA of $79mm, reflecting ratable base asset contribution.

• KNTK is a Permian-levered midstream company with critical infrastructure assets that

are well positioned to benefit from the commodity price backdrop. Near term, however,

we believe the company must execute on its established guidance to rebuild investor

confidence.

Within our midstream coverage, we prefer exposure to the Permian given the basin’s deep

resource and low-cost advantage relative to other liquids-oriented shale plays. Within the

Permian, KNTK provides gathering, transportation, compression, processing, and treating

services.

Further, KNTK has enhanced its position as a key G&P player in the Delaware Basin with

several strategic transactions (e.g., Durango acquisition, Eddy/Lea County agreements,

Reeves County acquisition).

By segment, KNTK's Midstream Logistics business is positioned to capitalize on growth in the