Kinetik (KNTK) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 10:34 AM CDT 33 min read

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DATE

Thursday, May 7, 2026 astatine 9 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Jamie W. Welch

• Chief Financial Officer — Trevor Howard

• Senior Vice President, Commercial — Kris Kindrick

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Full Conference Call Transcript

Jamie W. Welch: Thank you, Alex. Good morning, everyone. Kinetik Holdings Inc. delivered grounds net successful the archetypal quarter. This reflects cardinal execution crossed our 3 halfway pillars: commercial, operations, and financial. Before walking done each successful much detail, I wanted to concisely interaction connected caller geopolitical developments. The planetary macroeconomic scenery has shifted meaningfully since reporting 4th fourth 2025 results. While Trevor volition screen the implications that we spot contiguous successful much detail, we judge that Kinetik Holdings Inc. is incredibly good positioned arsenic these dynamics proceed to play out. Commercially, our squad has been highly productive. We person seen beardown conversion of opportunities into caller and amended agreements crossed some Texas and New Mexico.

Over the past fewer months, we person added caller customers crossed our gas, crude, and h2o work offerings, portion continuing to beforehand our strategy of revising commercialized presumption and extending bequest Durango contracts. During the quarter, we completed a important declaration amendment with a ample existing lawsuit successful New Mexico that expands the archetypal dedicated acreage by astir 25%. It consolidates aggregate agreements into a azygous declaration and extends presumption done 2039. As a result, astir 75% of bequest Durango state processing volumes person present been amended implicit the past 4 months.

Collectively, these caller and amended contracts widen presumption into the mid and precocious 2030s, summation margin, grow dedicated acreage, broaden services rendered, supply downstream power of works products, and reenforce semipermanent visibility crossed our New Mexico system. As we person said before, the connection from customers has been clear. Incremental sour state treating and processing capableness is simply a necessity to enactment their improvement plans successful New Mexico. Our beardown runtime show astatine King’s Landing and continued advancement connected the sour conversion project, combined with the caller declaration amendments and caller agreements, person created beardown commercialized momentum successful enactment of perchance advancing a processing capableness enlargement astatine the King’s Landing Complex. We besides proceed to prosecute highly capital-efficient powerfulness generation-related opportunities.

We signed a zero CapEx interconnection with Pecos Power, connecting our Delaware Link residue state pipeline to the Pecos Power Plant successful Reeves County. Combined with the CPV Basin Ranch interconnection, announced precocious past year, we person again demonstrated a fee-based template for monetizing our existing footprint arsenic Permian powerfulness procreation request grows. On the operations front, tract operations executed astatine a precocious level this quarter, delivering reliable show crossed the system, portion maintaining a beardown absorption connected safety. We person besides made coagulated advancement crossed our superior projects successful the quarter. We are nearing completion present of the ECCC pipeline, with in-service aboriginal this quarter.