Kinetik Holdings Inc.KNTK
Kinetik Holdings Inc. Segments Disclosure
SEGMENTS
Midstream Logistics and Pipeline Transportation are our operating segments representing the Company’s segments for which discrete financial information are available and utilized on a regular basis by our CODM to make key operating decisions, assess performance and allocate resources. These segments represent strategic business units with differing products and services. No operating segments have been aggregated to form the reportable segments. Therefore, our two operating segments represent our reportable segments. The activities of each of our reportable segments from which the Company earns revenues and incurs expenses are described below:
•Midstream Logistics: The Midstream Logistics segment operates under three revenue streams, 1) gas gathering and processing, 2) crude oil gathering, stabilization and storage services and 3) produced water gathering and disposal.
•Pipeline Transportation: The Pipeline Transportation segment consists of equity investment interests in two Permian Basin pipelines that access various points along the U.S. Gulf Coast and Mexico markets, Kinetik NGL Pipelines, Brandywine Pipeline and Delaware Link Pipeline. The current operating pipelines transport natural gas and NGLs.
Our Chief Executive Officer, who is the CODM, uses segment net income or loss 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, equity income and gain from sale of investments recorded using the equity method, share-based compensation expense, noncash increases and decreases related to commodity hedging activities, fair value adjustments to contingent liabilities, integration and transaction costs and extraordinary losses and unusual or non-recurring charges (“Segment Adjusted EBITDA”) to assess performance of each operating segment. For both segments, the CODM uses Segment Adjusted EBITDA to allocate resources. The CODM considers budget-to-actual and forecast-to-actual variances on a monthly basis for both measures when making decisions about allocating capital and personnel to the segments.
The Midstream Logistics segment accounts for more than 99% of the Company’s operating revenues, cost of sales (excluding depreciation and amortization expenses), operating expenses and ad valorem expenses. The Pipeline Transportation segment contains all of the Company’s equity method investments, which contribute more than 91% of the Segment’s Adjusted EBITDA. Corporate and Other contains the Company’s executive and administrative functions, including more than 80% of the Company’s general and administrative expenses.
The Company regularly provides management reports to the CODM that include cost of sales, operating expenses, and general and administrative expenses related to the segments, which are all considered to be significant.
The following tables present the Segment Adjusted EBITDA of the Company’s reportable segments and reconciliations of the segment profits to consolidated income before income tax expenses for the years ended December 31, 2025, 2024 and 2023:
| Midstream Logistics | Pipeline Transportation | Corporate and Other(1) | Elimination | Consolidated | ||||||||||||||||||||||||||||
For the year ended December 31, 2025 | (In thousands) | |||||||||||||||||||||||||||||||
| Revenue | $ | 1,743,171 | $ | 9,553 | $ | — | $ | — | $ | 1,752,724 | ||||||||||||||||||||||
| Other revenue | 11,657 | 8 | — | — | 11,665 | |||||||||||||||||||||||||||
Intersegment revenue(2) | — | 25,212 | — | (25,212) | — | |||||||||||||||||||||||||||
| Total segment operating revenue | 1,754,828 | 34,773 | — | (25,212) | 1,764,389 | |||||||||||||||||||||||||||
Costs of sales (excluding depreciation and amortization expenses) | (785,615) | (333) | — | — | (785,948) | |||||||||||||||||||||||||||
| Intersegment costs of sales | (25,212) | — | — | 25,212 | — | |||||||||||||||||||||||||||
Operating expenses(3) | (297,621) | (2,632) | — | — | (300,253) | |||||||||||||||||||||||||||
| General and administrative expenses | (23,878) | (1,122) | (105,616) | — | (130,616) | |||||||||||||||||||||||||||
| Proportionate EMI EBITDA | — | 339,448 | — | — | 339,448 | |||||||||||||||||||||||||||
Other segment items(4) | 13,343 | — | 87,341 | — | 100,684 | |||||||||||||||||||||||||||
Segment Adjusted EBITDA(5) | $ | 635,845 | $ | 370,134 | $ | (18,275) | $ | — | $ | 987,704 | ||||||||||||||||||||||
Reconciliation of segment profit to income before income taxes | ||||||||||||||||||||||||||||||||
Segment Adjusted EBITDA(5) | $ | 635,845 | $ | 370,134 | $ | (18,275) | $ | — | $ | 987,704 | ||||||||||||||||||||||
| Add back: | ||||||||||||||||||||||||||||||||
| Other interest income | — | — | 1,510 | — | 1,510 | |||||||||||||||||||||||||||
| Commodity hedging unrealized gain | 18,871 | — | — | — | 18,871 | |||||||||||||||||||||||||||
| Gain on sale of equity method investment | — | 415,409 | — | — | 415,409 | |||||||||||||||||||||||||||
| Equity in earnings of unconsolidated affiliates | — | 226,351 | — | — | 226,351 | |||||||||||||||||||||||||||
| Deduct: | ||||||||||||||||||||||||||||||||
| Interest expense | 138 | — | 233,233 | — | 233,371 | |||||||||||||||||||||||||||
| Depreciation and amortization expenses | 373,388 | 9,234 | 23 | — | 382,645 | |||||||||||||||||||||||||||
| Contract assets amortization | 6,794 | — | — | — | 6,794 | |||||||||||||||||||||||||||
| Proportionate EMI EBITDA | — | 339,448 | — | — | 339,448 | |||||||||||||||||||||||||||
| Share-based compensation | — | — | 62,617 | — | 62,617 | |||||||||||||||||||||||||||
| Loss on disposal of assets, net | 8 | — | — | — | 8 | |||||||||||||||||||||||||||
Loss on debt extinguishment | — | — | 635 | — | 635 | |||||||||||||||||||||||||||
| Contingent liabilities fair value adjustment | 5,190 | — | — | — | 5,190 | |||||||||||||||||||||||||||
| Integration costs | 13,169 | — | 1,789 | — | 14,958 | |||||||||||||||||||||||||||
Acquisition / divestiture transaction costs | — | — | 275 | — | 275 | |||||||||||||||||||||||||||
Litigation costs | — | — | 19,708 | — | 19,708 | |||||||||||||||||||||||||||
| Other one-time costs and amortization | 4,588 | — | 2,952 | — | 7,540 | |||||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 251,441 | $ | 663,212 | $ | (337,997) | $ | — | $ | 576,656 | ||||||||||||||||||||||
| Midstream Logistics | Pipeline Transportation | Corporate and Other(1) | Elimination | Consolidated | ||||||||||||||||||||||||||||
For the year ended December 31, 2024 | (In thousands) | |||||||||||||||||||||||||||||||
| Revenue | $ | 1,461,898 | $ | 9,088 | $ | — | $ | — | $ | 1,470,986 | ||||||||||||||||||||||
| Other revenue | 11,652 | 291 | — | — | 11,943 | |||||||||||||||||||||||||||
Intersegment revenue(2) | — | 26,099 | — | (26,099) | — | |||||||||||||||||||||||||||
| Total segment operating revenue | 1,473,550 | 35,478 | — | (26,099) | 1,482,929 | |||||||||||||||||||||||||||
Costs of sales (excluding depreciation and amortization expenses) | (620,617) | (1) | — | (620,618) | ||||||||||||||||||||||||||||
| Intersegment costs of sales | (26,099) | — | — | 26,099 | — | |||||||||||||||||||||||||||
Operating expenses(3) | (217,780) | (2,904) | — | — | (220,684) | |||||||||||||||||||||||||||
| General and administrative expenses | (19,623) | (1,689) | (112,845) | — | (134,157) | |||||||||||||||||||||||||||
| Proportionate EMI EBITDA | — | 346,666 | — | — | 346,666 | |||||||||||||||||||||||||||
Other segment items(4) | 25,452 | — | 91,530 | — | 116,982 | |||||||||||||||||||||||||||
Segment Adjusted EBITDA(5) | $ | 614,883 | $ | 377,550 | $ | (21,315) | $ | — | $ | 971,118 | ||||||||||||||||||||||
Reconciliation of Segment Adjusted EBITDA to income before income taxes | ||||||||||||||||||||||||||||||||
Segment Adjusted EBITDA(5) | $ | 614,883 | $ | 377,550 | $ | (21,315) | $ | — | $ | 971,118 | ||||||||||||||||||||||
| Add back: | ||||||||||||||||||||||||||||||||
| Other interest income | — | — | 1,988 | — | 1,988 | |||||||||||||||||||||||||||
| Gain on sale of equity method investment | — | 89,802 | — | — | 89,802 | |||||||||||||||||||||||||||
| Equity in earnings of unconsolidated affiliates | — | 213,191 | — | — | 213,191 | |||||||||||||||||||||||||||
| Deduct: | ||||||||||||||||||||||||||||||||
| Interest expense | 81 | — | 217,154 | — | 217,235 | |||||||||||||||||||||||||||
| Depreciation and amortization expenses | 314,970 | 9,204 | 23 | — | 324,197 | |||||||||||||||||||||||||||
| Contract assets amortization | 6,621 | — | — | — | 6,621 | |||||||||||||||||||||||||||
| Proportionate EMI EBITDA | — | 346,666 | — | — | 346,666 | |||||||||||||||||||||||||||
| Share-based compensation | — | — | 76,536 | — | 76,536 | |||||||||||||||||||||||||||
| Loss on disposal of assets, net | 4,040 | — | — | — | 4,040 | |||||||||||||||||||||||||||
| Commodity hedging unrealized loss | 10,788 | — | — | — | 10,788 | |||||||||||||||||||||||||||
| Loss on debt extinguishment | — | — | 525 | — | 525 | |||||||||||||||||||||||||||
| Contingent liabilities fair value adjustment | 200 | — | — | — | 200 | |||||||||||||||||||||||||||
| Integration costs | 2,110 | — | 3,716 | — | 5,826 | |||||||||||||||||||||||||||
| Acquisition transaction costs | — | — | 4,096 | — | 4,096 | |||||||||||||||||||||||||||
Litigation costs | 229 | — | 5,845 | — | 6,074 | |||||||||||||||||||||||||||
| Other one-time costs or amortization | 4,690 | — | 1,337 | — | 6,027 | |||||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 271,154 | $ | 324,673 | $ | (328,559) | $ | — | $ | 267,268 | ||||||||||||||||||||||
| Midstream Logistics | Pipeline Transportation | Corporate and Other(1) | Elimination | Consolidated | ||||||||||||||||||||||||||||
For the year ended December 31, 2023 | (In thousands) | |||||||||||||||||||||||||||||||
| Revenue | $ | 1,236,304 | $ | 3,857 | $ | — | $ | — | $ | 1,240,161 | ||||||||||||||||||||||
| Other revenue | 13,343 | 2,908 | — | — | 16,251 | |||||||||||||||||||||||||||
Intersegment revenue(2) | — | 1,678 | — | (1,678) | — | |||||||||||||||||||||||||||
| Total segment operating revenue | 1,249,647 | 8,443 | — | (1,678) | 1,256,412 | |||||||||||||||||||||||||||
Costs of sales (excluding depreciation and amortization expenses) | (514,035) | (1,686) | — | — | (515,721) | |||||||||||||||||||||||||||
| Intersegment costs of sales | (1,678) | — | — | 1,678 | — | |||||||||||||||||||||||||||
Operating expenses(3) | (182,684) | (458) | — | — | (183,142) | |||||||||||||||||||||||||||
| General and administrative expenses | (17,216) | (1,265) | (79,425) | — | (97,906) | |||||||||||||||||||||||||||
| Proportionate EMI EBITDA | — | 306,072 | — | — | 306,072 | |||||||||||||||||||||||||||
Other segment items(4) | 9,156 | — | 63,959 | — | 73,115 | |||||||||||||||||||||||||||
Segment Adjusted EBITDA(5) | $ | 543,190 | $ | 311,106 | $ | (15,466) | $ | — | $ | 838,830 | ||||||||||||||||||||||
Reconciliation of segment profit to income before income taxes | ||||||||||||||||||||||||||||||||
Segment Adjusted EBITDA(5) | $ | 543,190 | $ | 311,106 | $ | (15,466) | $ | — | $ | 838,830 | ||||||||||||||||||||||
| Add back: | ||||||||||||||||||||||||||||||||
| Other interest income | — | — | 677 | — | 677 | |||||||||||||||||||||||||||
| Warrant valuation adjustment | — | — | 88 | — | 88 | |||||||||||||||||||||||||||
| Commodity hedging unrealized gain | 4,291 | — | — | — | 4,291 | |||||||||||||||||||||||||||
Equity in earnings from unconsolidated affiliates | — | 200,015 | — | — | 200,015 | |||||||||||||||||||||||||||
| Deduct: | ||||||||||||||||||||||||||||||||
| Interest expense | 47 | — | 205,807 | — | 205,854 | |||||||||||||||||||||||||||
| Depreciation and amortization expenses | 275,568 | 5,395 | 23 | — | 280,986 | |||||||||||||||||||||||||||
| Contract assets amortization | 6,620 | — | — | — | 6,620 | |||||||||||||||||||||||||||
| Proportionate EMI EBITDA | — | 306,072 | — | — | 306,072 | |||||||||||||||||||||||||||
| Share-based compensation | — | — | 55,983 | — | 55,983 | |||||||||||||||||||||||||||
| Loss on disposal of assets, net | 19,402 | — | — | — | 19,402 | |||||||||||||||||||||||||||
| Loss on debt extinguishment | — | — | 1,876 | — | 1,876 | |||||||||||||||||||||||||||
| Integration costs | 59 | — | 956 | — | 1,015 | |||||||||||||||||||||||||||
| Acquisition transaction costs | 33 | — | 615 | — | 648 | |||||||||||||||||||||||||||
Litigation costs | 1,154 | — | 2,978 | — | 4,132 | |||||||||||||||||||||||||||
| Other one-time costs or amortization | 4,842 | — | 2,927 | — | 7,769 | |||||||||||||||||||||||||||
| Income (loss) before income taxes | $ | 239,756 | $ | 199,654 | $ | (285,866) | $ | — | $ | 153,544 | ||||||||||||||||||||||
(1)Corporate and Other represents those results that: (i) are not specifically attributable to an operating segment; (ii) are not individually reportable; or (iii) have not been allocated to a reportable segment for the purpose of evaluating their performance, including certain general and administrative expense items. Items included here to reconcile operating segments profit and loss with the Company’s consolidated profit and loss.
(2)The Company accounts for intersegment sales at market prices, while it accounts for asset transfers at book value. Intersegment revenue is eliminated at consolidation.
(3)Operating expenses includes ad valorem taxes.
(4)Other segment items include certain other income items, share-based compensation, adjustments related to amortization of contract costs, fair value adjustments to contingent liabilities, commodity hedging unrealized gain or loss, integration costs, acquisition/divestiture costs, litigation costs and other one-time costs or amortization.
(5)Segment adjusted EBITDA is a non-GAAP measure; please see Key Performance Metrics in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations of this Annual Report, for a definition and reconciliation to the GAAP measure.
The following tables present supplemental segment information that are not included in the segment profit measurements above for the years ended December 31, 2025, 2024 and 2023:
| Midstream Logistics | Pipeline Transportation | Corporate and Other(1) | Consolidated | |||||||||||||||||||||||
For the year ended December 31, 2025 | (In thousands) | |||||||||||||||||||||||||
Income tax expense | $ | — | $ | — | $ | 50,728 | $ | 50,728 | ||||||||||||||||||
Total capital expenditures(2)(3) | 528,482 | 1,189 | — | 529,671 | ||||||||||||||||||||||
| Midstream Logistics | Pipeline Transportation | Corporate and Other(1) | Consolidated | |||||||||||||||||||||||
For the year ended December 31, 2024 | (In thousands) | |||||||||||||||||||||||||
Income tax expense | $ | — | $ | — | $ | 23,035 | $ | 23,035 | ||||||||||||||||||
Total capital expenditures(2)(3) | 273,783 | 2,080 | 10 | 275,873 | ||||||||||||||||||||||
| Midstream Logistics | Pipeline Transportation | Corporate and Other(1) | Consolidated | |||||||||||||||||||||||
For the year ended December 31, 2023 | (In thousands) | |||||||||||||||||||||||||
| Income tax benefit | $ | — | $ | — | $ | (232,908) | $ | (232,908) | ||||||||||||||||||
Total capital expenditures(2)(3) | 234,879 | 94,675 | — | 329,554 | ||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||
| 2025 | 2024 | |||||||||||||
| Total assets: | (In thousands) | |||||||||||||
Midstream Logistics(4) | $ | 4,714,723 | $ | 4,326,954 | ||||||||||
Pipeline Transportation(5) | 2,153,280 | 2,270,403 | ||||||||||||
| Segment total assets | 6,868,003 | 6,597,357 | ||||||||||||
Corporate and Other | 227,608 | 217,580 | ||||||||||||
| Total assets | $ | 7,095,611 | $ | 6,814,937 | ||||||||||
(1)Corporate and Other represents those results that: (i) are not specifically attributable to an operating segment; (ii) are not individually reportable; or (iii) have not been allocated to a reportable segment for the purpose of evaluating their performance, including certain general and administrative expense items.
(2)Excludes capital assets acquired in the Company’s business combinations that are included in the Midstream Logistic segment. See Note 3—Business Combinations in the Notes to our Consolidated Financial Statements in this Annual Report for additional information.
(3)Excludes contributions, acquisition and divestiture of equity interest in the Company’s EMIs that are included in Pipeline Transportation segment. See Note 7—Equity Method Investments in the Notes to our Consolidated Financial Statements in this Annual Report for additional information.
(4)Midstream Logistics segment included goodwill of $5.1 million as of December 31, 2025 and 2024.
(5)Pipeline Transportation segment included investment in unconsolidated affiliates of $2.01 billion and $2.12 billion as of December 31, 2025 and 2024, respectively.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Mar 5, 2024 | |
| 2022 | Mar 7, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.