Slides
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Fourth Quarter 2025 Results & 2026 Guidance February 25, 2026
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Forward looking statements This presentation includes certain statements that may constitute “forward-looking statements” for purposes of the federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts, outlooks, guidance or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “seeks,” “possible,” “potential,” “predict,” “project,” “prospects,” “guidance,” “outlook,” “should,” “would,” “will,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about the Company’s future business strategy and plans, expectations, and objectives for the Company’s operations, including statements about strategy, synergies, sustainability goals and initiatives, technology adoption, portfolio monetization opportunities, growth, expansion, cost reduction and other capital projects and the timing and cost thereof, future operations, financial guidance, growth opportunities, the amount and timing of future shareholder returns, the Company’s projected dividend amounts and the timing thereof, and the Company’s targeted leverage and financial profile While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025 to be filed with the SEC. Any forward-looking statement made by us in this presentation speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future development, or otherwise, except as may be required by law. USE OF PROJECTIONS This presentation contains projections for Kinetik, including with respect to Kinetik’s adjusted EBITDA, capital expenditures, net debt, leverage, and processed gas volumes. Kinetik’s independent auditors have not audited, reviewed, compiled or performed any procedures with respect to the projections for the purpose of their inclusion in this presentation, and accordingly, have not expressed an opinion or provided any other form of assurance with respect thereto for the purpose of this presentation. These projections are for illustrative purposes only, should not be relied upon as being necessarily indicative of future results, and are subject to the disclaimers under “Forward Looking Statements” above. USE OF NON-GAAP FINANCIAL MEASURES This presentation includes non-GAAP financial measures, including adjusted EBITDA, capital expenditures, free cash flow, net debt, and leverage. Kinetik believes these non-GAAP measures are useful because they allow Kinetik to more effectively evaluate its operating performance and compare the results of its operations from period to period and against its peers without regard to financing methods or capital structure. Kinetik does not consider these non-GAAP measures in isolation or as an alternative to similar financial measures determined in accordance with GAAP. The computations of adjusted EBITDA, capital expenditures, distributable cash flow, free cash flow, net debt, and leverage may not be comparable to other similarly titled measures of other companies. Kinetik excludes certain items from net (loss) income in arriving at Adjusted EBITDA and distributable cash flow because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA and distributable cash flow should not be considered an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as indicators of operating performance. Certain items excluded from Adjusted EBITDA and distributable cash flow are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA or distributable cash flow. Kinetik’s presentation of Adjusted EBITDA, capital expenditures, distributable cash flow, free cash flow, net debt, and leverage should not be construed as an inference that its results will be unaffected by unusual or non-recurring terms. See “Notes Regarding Presentation of Financial Information.” For reconciliation, see appendix. This presentation also includes certain forward-looking non-GAAP financial information. Reconciliations of these forward-looking non-GAAP measures to their most directly comparable GAAP measure are not available without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various reconciling items that would impact the most directly comparable forward-looking GAAP financial measure, that have not yet occurred, are out of Kinetik’s control and/or cannot be reasonably predicted. Accordingly, such reconciliation is excluded from this presentation. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. 2
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$1.95 $0.66 $0.74 $(0.45) 1Q25 2Q25 3Q25 4Q25 KNTK Gas Processed Waha-Related Volume Impacts Average Waha Price ($/Mmbtu) $737mm $822mm $839mm $971mm $988mm 2021A 2022A 2023A 2024A 2025A FY 2025 performance Strategic initiatives drove YoY growth despite a challenging operating environment 3 Illustrative 2025 Volumes Normalized for Waha Impacts(2,3) 2021 - 2025 Adjusted EBITDA(1) (1) A non-G AAP measure. See “Non- GAAP Financial Measures Reconciliation.” (2) Kinetik’s processed gas volumes plus estimated curtailments across the system. (3) Waha pricing assumes 50% gas daily average and 50% inside FERC blend. (4) Includes proportionate debt at EPIC Crude and excludes potential earn- out. ~8% Adjusted EBITDA CAGR(1) 2025 Highlights Closed the bolt-on acquisition of Barilla Draw gathering assets Achieved commercial in-service at Kings Landing in late September 2025 Progressed construction on ECCC Pipeline Closed divestiture of 27.5% equity interest in EPIC Crude for up to ~$780mm(4) Reached FID on AGI and sour conversion at Kings Landing Finalized agreement with CPV for residue natural gas at new 1,350 MW power generation facility in Texas Executed 5-year European LNG pricing agreement with INEOS for ~0.5 MTPA at Port Arthur LNG Increased Share Repurchase Program to $500mm Dual listed common stock on the NYSE Texas ~1.80 Bcfpd ~1.79 Bcfpd ~1.89 Bcfpd ~1.96 Bcfpd
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Recent highlights Solid operational, commercial, and financial execution in the fourth quarter 4 (1) See slides 9 and 10 for key assumptions. (2) A non-GAAP measure. See “Non-GAAP Financial Measures Reconciliation” for a reconciliation to the nearest comparable GAAP measure. (3) 2025 Adjusted EBITDA normalized for EPIC Crude Divestiture. (4) Net of contributions in aid of construction and returns of invested capital from unconsolidated affiliates. $252mm Adjusted EBITDA(2) $(12)mm Free Cash Flow(2) $139mm Capital Expenditures(4) 3.8x Leverage Ratio(2) Q4 Financial Results Operational and Commercial Financial 2026 Financial Guidance(1): Adjusted EBITDA(2) Guidance of $950mm to $1,050mm: ~7% growth YoY(3) at the midpoint Capital Expenditures(4) Guidance of $450mm to $510mm Refreshed Capital Allocation framework prioritizing growth-oriented, scale-driven reinvestment Commenced construction on the AGI and sour conversion project at Kings Landing following notice to proceed from BLM, in-service expected by year-end 2026 Acquired 40 MW gas turbine and reached FID on the behind-the-meter power generation project at Diamond Cryo with expected in-service by year-end 2026 Construction continues at ECCC Pipeline with in-service on track for 2Q26 Amended gas G&P agreements with the two largest customers on the legacy Durango Midstream system Amended a key Delaware South gas G&P agreement to migrate a portion of volumes from Waha-based pricing to premium Gulf Coast markets Initiated pilot with Palantir to enhance decision-making, planning, and profitability insights across footprint
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61% 6% 24% 7% 2% 4Q25 Adjusted EBITDA(1) 33% Pipeline Transportation67% Midstream Logistics 4Q25 segment performance 5(1) A non-GAAP measure. See “Non-GAAP Financial Measures Reconciliation” for a reconciliation to the nearest comparable GAAP measure. Pipeline Transportation Adjusted EBITDA(1) ($mm) Quarterly results benefited from modest outperformance at Midstream Logistics segment Midstream Logistics Adjusted EBITDA(1) ($mm) • 4Q25 Adjusted EBITDA(1) (+15% YoY) primarily benefited from Gulf Coast marketing gains, partially offset by Waha price-related production shut-ins • 4Q25 Adjusted EBITDA(1) (-9% YoY) impacted by only one month of contributions from EPIC Crude $143 $148 $174 $150 $159 $151 $151 $173 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 $96 $94 $96 $92 $94 $97 $95 $84 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25
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-$1.00 -$0.50 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 8 12 16 20 24 28 32 Transportation Expansions Permian Residue Transport Volumes Utilization Waha Forward Market Pricing ($Mmbtu) Levered to improving natural gas fundamentals in the Permian 6 Structural tailwinds from gassier production, increased takeaway capacity, and emerging power demand (1) Source: Wood Mackenzie Lower 48 Oil and Gas Supply Outlook H1 2025, May 2025. (2) Source: Enverus and internal estimates. Waha market forward pricing as of February 13, 2026. Expansions include Whitewater Midstream’s Blackcomb pipeline (2.5 Bcfpd) and Eiger Express pipeline (3.7 Bcfpd), ET’s Hugh Brinson pipeline (2.2 Bcfpd), and Kinder Morgan’s GCX expansion (0.6 Bcfpd). (3) Source: ERCOT Adjusted Large Load Breakdown. Gas-to-Oil Ratios (GOR)(1) Takeaway Capacity Constraints Alleviated(2) Data Center Driven Power Generation Demand(3) By 2050, the Delaware Basin GOR is expected to increase by nearly 70% to ~6.6 Mcf/bbl as activity shifts to gassier benches Highly productive gas plays like the Barnett, Woodford, and Alpine High increasingly attractive as gas fundamentals improve 2025 2030 2035 2040 2045 2050 Delaware Permian 5.9 Mcf/bbl 6.6 Mcf/bbl 3.4 Mcf/bbl 3.9 Mcf/bbl ~5 Bcfpd of egress capacity additions by 1Q27 to drive utilization below 90% for next two years, reducing Waha discount to GC Further, ~6 Bcfpd of capacity online in 2028/ 2029 with Eiger Express and Desert Southwest ERCOT forecasts peak demand to rise ~44 GW by 2030 – data centers account for nearly half of incremental peak load growth Flexible power solutions like BTM and microgrid adoption can provide meaningful upside and mitigate grid bottlenecks 2 GW 7 GW 14 GW 18 GW 22 GW95 GW 104 GW 122 GW 129 GW 139 GW 2026 2027 2028 2029 2030 Base Load Data Centers Crypto Industrial Hydrogen Oil and Gas PV Bcfpd
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2025 2026 2027 2028 2029 Existing Kings Landing AGI - Phase 1 Kings Landing AGI - Phase 2 Permitted Capacity Scalable sour gas handling platform in Delaware North 7 Existing sour gas infrastructure and planned expansion support meaningful upside Delaware North Total Acid Gas Capacity Avalon + 1st Bone Spring Net Pay(1) Over 31 Mmcfpd of permitted total acid gas capacity later this year enables significant resource development across Kinetik footprint, including a processing expansion at Kings Landing Actively pursuing a number of sour gas opportunities that could provide meaningful margin uplift over the next few years 6.5 Mmcfpd Operational (1) Source: Jefferies and internal estimates. 11.5 Mmcfpd Permitted 24 Mmcfpd Operational 31.5 Mmcfpd Permitted Undedicated acreage positions with significant remaining inventory exist in the Northern Delaware today Recent successful developments in the Avalon and 1st Bone Spring are driving delineation into Eddy and Lea Counties Both formations carry significantly higher CO2 and H2S than traditional benches, reinforcing the importance of Kinetik’s system Last Twelve Months Permit Last Twelve Months DUC / Producing New Delineation North and West
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Delaware Basin scale drives meaningful earnings growth Highly accretive projects expected to drive value creation and reinforce Kinetik’s unique and attractive footprint 8 Kings Landing Complex • Commercial in-service in late September 2025; currently running ~65-70% utilized • Construction activities started on the AGI and sour conversion project, in-service expected by YE 2026 Kings Landing Cryo II • Finalizing commercial negotiations Eddy County Project • 15-year low- and high-pressure gas gathering and processing agreement • Increased expected maximum volume in light of development activity and production results Power Generation Opportunities • Reached FID on behind-the-meter power generation project at Diamond Cryo • Pipeline connection to supply residue natural gas to the new 1,350 MW CPV Basin Ranch Energy Center in Ward County, TX Delaware North Contract Amendments • Extended G&P contracts with two large customers into the mid-2030s • Multi-year earnings uplift with fixed-fee structures, the addition of treating fees, and control of residue gas and NGLs ECCC Pipeline • Large diameter, high-pressure pipeline to connect Delaware North with Delaware South system • Construction almost complete with estimated in-service in 2Q26 • Expandable to ~300 Mmcfpd of throughput capacity to support NM customers’ development plans Delaware North system Processing Facilities Eddy County Project ECCC Pipeline Delaware South system Serviced Acreage
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2025A YoY Growth 2026E Expectations Permian Production(4) Natural Gas 11% Mid single-digit growth Crude Oil 5% Flat Kinetik Natural Gas 10% High single-digit growth Crude Oil 43% ~20% growth Produced Water 6% Flat 2026 Guidance and assumptions Key expectations reflected in full year guidance 9 (1) A non-GAAP measure. See “Non-GAAP Financial Measures Reconciliation.” (2) Net of contributions in aid of construction and returns of invested capital from unconsolidated affiliates. (3) 2025 Adjusted EBITDA excluding approximately $54mm of actual Adjusted EBITDA contributions from EPIC Crude. (4) Source: EIA Natural Gas Permian Marketed Production and Permian Crude Oil Production as of February 10, 2026. (5) Assumes pricing as of February 13, 2026. (6) Sensitivity applied March to December 2026. 2026 Commodity Price Assumptions(5) 2026 Financial Guidance(1,2) Volume Assumptions Commodity Price Input WTI ($/Bbl) $61.58 HSC Natural Gas ($/Mmbtu) $3.34 Waha Natural Gas ($/Mmbtu) $0.44 NGL Composite ($/Gal) $0.52 2025A Capital Expenditures 2026E Capital Expenditures Fixed Fee 84% Commodity 16% 2026E Gross Profit Sources 2025A Adjusted EBITDA 2026E Adjusted EBITDA $497mm $950 - $1,050mm $988mm 2026 Commodity Price Sensitivities(6) Commodity % Change in Guidance Price Input Potential Impact to Adjusted EBITDA(1) WTI / C3+ +/- 25% +/- $20mm Natural Gas / Ethane +/- $10mm Waha – HSC Basis Spread +/- $15mm $450 - $510mm$933mm(3)
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Delaware North ~70% Delaware South ~30% 2026E Capital Expenditures Guidance(1,2) Current capital projects drive meaningful volume and earnings growth over next several years 10 (1) A non-GAAP measure. See “Non-GAAP Financial Measures Reconciliation.” (2) Net of contributions in aid of construction and returns of invested capital from unconsolidated affiliates. (3) Reflects midpoint of 2026E Capital Expenditures Guidance. Completion of the ECCC Pipeline Kings Landing sour gas conversion Expansion of low- and high-pressure gathering in Eddy County, NM Build-out of low- and high-pressure gathering in Lea County, NM Construction of the BTM gas-fired power generation project at Diamond Cryo Growth and maintenance capital across Texas and New Mexico system Field ~38% Facilities ~34% Trunklines ~18% Maintenance ~10% Allocation of 2026E Capital Expenditures(3) Key Drivers Field and maintenance represent capex to achieve high single-digit volume growth YoY ~70% allocated to New Mexico, reflects opportunity set and incumbent advantage
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Objectives Foundation Targeted Leverage Ratio(1) of 3.5x to 4.0x Refreshed Capital Allocation framework Reflects structurally higher reinvestment opportunity and growth-first mentality 11 (1) A non-GAAP measure. See “Non-GAAP Financial Measures Reconciliation” for a reconciliation to the nearest comparable GAAP measure. (2) Dividend Coverage Ratio is Distributable Cash Flow divided by total declared dividends. (3) Any payment of future dividends is subject to board approval and other factors, including any contractual limitations. The ti ming of any share repurchases will depend on market conditions, contractual limitations and other considerations. The share repurch ase program may be extended, modified, suspended or discontinued at any time, and does not obligate the Company to repurchase any dollar amount or number of shares. Capital Returns Levers Maintain ample liquidity for disciplined capital deployment Organic growth: Near-term elevated growth capital focused on compelling infrastructure returns that build upon incumbent advantage Dividend increases: 3% to 5% per year until Dividend Coverage of 1.6x(1,2) reached; aligned with earnings growth thereafter(3) Share Repurchases: central to longer term incremental returns(3) Maximize share price outcomes Deliver meaningful, sustainable shareholder value Capital allocation framework designed to compound long-term value through high-return organic projects and disciplined approach to financial health
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Glossary of terms • Adjusted EBITDA (EBITDA) is defined as net income including non-controlling interests adjusted for interest, taxes, depreciation and amortization, impairment charges, asset write-offs, the proportionate EBITDA from unconsolidated affiliates, equity in earnings from unconsolidated affiliates, share-based compensation expense, non-cash increases and decreases related to trading and hedging agreements, extraordinary losses and unusual or non-recurring charges • Capital Expenditures is defined as costs incurred in midstream activities, less any contributions in aid of construction plus investments in unconsolidated affiliates, less returns of invested capital from unconsolidated affiliates • Distributable Cash Flow is defined as Adjusted EBITDA, adjusted for the proportionate EBITDA from unconsolidated affiliates, returns on invested capital from unconsolidated affiliates, interest expense, net of amounts capitalized, unrealized gains or losses on interest rate swaps, and maintenance capital expenditures • Free Cash Flow is defined as Distributable Cash Flow adjusted for growth capital expenditures, investments in unconsolidated affiliates, returns of invested capital from unconsolidated affiliates, cash interest, capitalized interest, realized gains or losses on interest rate swaps and contributions in aid of construction • Gross Profit is defined as revenues less cost of goods sold (exclusive of depreciation and amortization) • Leverage Ratio or Leverage is defined as total debt less cash and cash equivalents divided by last twelve months Adjusted EBITDA, calculated in our credit agreement. The calculation includes EBITDA Adjustments for Qualified Projects, Acquisitions and Divestitures • Net Debt is defined as total long-term debt, excluding deferred financing costs, less cash and cash equivalents 13
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Non-GAAP Measures Reconciliation 14 (1) Adjusted EBITDA is defined as net income including noncontrolling interest adjusted for interest, taxes, depreciation and amorti zation, gain or loss on disposal of assets and debt extinguishment, the proportionate EBITDA from our EMI pipelines, share- based compensation expense, noncash increases and decreases related to commodity hedging activities, integration and transaction costs , litigation costs and extraordinary losses and unusual or non- recurring charges. Adjusted EBITDA provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted EBITDA should not be considered as an alternative to the GAAP measure of net income including non-controlling interest or any other measure of financial performance presented in accordance with GAAP. Three Months Ended December 31, For The Year Ended December 31, 2025 2024 2025 2024 (In thousands) Net Income Including Noncontrolling Interests to Adjusted EBITDA Net income including noncontrolling interest (GAAP) $ 416,701 $ 16,224 $ 525,928 $ 244,233 Add back: Interest expense 59,422 49,690 233,371 217,235 Income tax expense 39,725 1,774 50,728 23,035 Depreciation and amortization expenses 100,800 87,947 382,645 324,197 Amortization of contract costs 1,740 1,656 6,794 6,621 Proportionate EMI EBITDA 76,103 84,113 339,448 346,666 Share-based compensation 18,040 23,669 62,617 76,536 Loss (gain) on disposal of assets, net 23 (50) 8 4,040 Loss on debt extinguishment — 35 635 525 Commodity hedging unrealized (gain) loss (5,740) 12,722 (18,871) 10,788 Contingent liabilities fair value adjustment (510) (1,200) 5,190 200 Integration costs 2,337 735 14,958 5,826 Acquisition/divestiture transaction costs (562) 558 275 4,096 Litigation costs 10,566 2,666 19,708 6,074 Other one-time costs or amortization 974 988 7,540 6,027 Deduct: Other interest income 236 530 1,510 1,988 Gain (loss) on sale of equity method investment 415,409 — 415,409 89,802 Equity income from unconsolidated affiliates 51,879 43,523 226,351 213,191 Adjusted EBITDA(1) (non-GAAP) $ 252,095 $ 237,474 $ 987,704 $ 971,118
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Non-GAAP Measures Reconciliation 15 (1) Adjusted EBITDA is defined as net income including noncontrolling interest adjusted for interest, taxes, depreciation and amorti zation, gain or loss on disposal of assets and debt extinguishment, the proportionate EBITDA from our EMI pipelines, share- based compensation expense, noncash increases and decreases related to commodity hedging activities, integration and transaction costs , litigation costs and extraordinary losses and unusual or non- recurring charges. Adjusted EBITDA provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted EBITDA should not be considered as an alternative to the GAAP measure of net income including non-controlling interest or any other measure of financial performance presented in accordance with GAAP. For The Year Ended December 31, 2025 2024 (In thousands) Reconciliation of net cash provided by operating activities to Adjusted EBITDA Net cash provided by operating activities $ 604,120 $ 637,346 Net changes in operating assets and liabilities 23,026 43,401 Interest expense 233,371 217,235 Amortization of deferred financing costs (7,869) (7,438) Current income tax expense 68 3,532 Returns on invested capital from unconsolidated affiliates (246,002) (289,992) Proportionate EBITDA from unconsolidated affiliates 339,448 346,666 Derivative fair value adjustment and settlement 19,442 (10,455) Commodity hedging unrealized (gain) loss (18,871) 10,788 Interest income (1,510) (1,988) Integration costs 14,958 5,826 Acquisition/divestiture transaction costs 275 4,096 Litigation costs 19,708 6,074 Other one-time cost or amortization 7,540 6,027 Adjusted EBITDA(1) (non-GAAP) $ 987,704 $ 971,118
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Non-GAAP Measures Reconciliation 16 (1) Distributable Cash Flow is defined as Adjusted EBITDA, adjusted for the proportionate EBITDA from unconsolidated affiliates, returns on invested capital from unconsolidated affiliates, interest expense, net of amounts capitalized, unrealized gains or losse s on interest rate swaps and maintenance capital expenditures. Distributable Cash Flow should not be considered as an alternative to the GAAP measure of net income including non-controlling interest or any other measure of financial performance presented in accordance with GAAP. We believe that Distributable Cash Flow is a useful measure to compare cash generation performance from period to period and to compare the cash generation performance for specific periods to the amount of cash dividends we make. (2) Free Cash Flow is defined as Distributable Cash Flow adjusted for growth capital expenditures, investments in unconsolidated affiliates, returns of invested capital from unconsolidated affiliates, cash interest, capitalized interest, realized gains or l osses on interest rate swaps and contributions in aid of construction. Free Cash flow should not be considered as an alternative to the GAAP measure of net income including non- controlling interest or any other measure of financial performance presented in accordance with GAAP. We believe that Free Cash Flow is a useful performance measure to compare cash generation performance from period to perio d and to compare the cash generation performance for specific periods to the amount of cash dividends that we make. Three Months Ended December 31, For The Year Ended December 31, 2025 2024 2025 2024 (In thousands) Distributable Cash Flow(1) Adjusted EBITDA (non-GAAP) $ 252,095 $ 237,474 $ 987,704 $ 971,118 Proportionate EBITDA from unconsolidated affiliates (76,103) (84,113) (339,448) (346,666) Returns on invested capital from unconsolidated affiliates 40,798 66,322 246,002 289,992 Interest expense (59,422) (49,690) (233,371) (217,235) Unrealized loss (gain) on interest rate swaps 61 (3,102) (571) (333) Maintenance capital expenditures (5,721) (11,451) (39,811) (39,862) Distributable cash flow (non-GAAP) $ 151,708 $ 155,440 $ 620,505 $ 657,014 Free Cash Flow(2) Distributable cash flow (non-GAAP) $ 151,708 $ 155,440 $ 620,505 $ 657,014 Cash interest adjustment (28,552) (25,042) 17,875 (27,036) Realized gain on interest rate swaps 202 1,251 608 13,149 Growth capital expenditures (132,511) (97,437) (475,346) (227,690) Capitalized interest (2,206) (3,436) (14,514) (8,321) Investments in unconsolidated affiliates — — (1,206) (3,273) Returns of invested capital from unconsolidated affiliates — 1,270 2,853 4,059 Contributions in aid of construction (657) 433 16,392 2,231 Free cash flow (non-GAAP) $ (12,016) $ 32,479 $ 167,167 $ 410,133
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Non-GAAP Measures Reconciliation 17 (1) Net Debt is defined as total short-term and long-term debt, excluding deferred financing costs, premiums and discounts, less cas h and cash equivalents. Net Debt illustrates our total debt position less cash on hand that could be utilized to pay down debt a t the balance sheet date. Net Debt should not be considered as an alternative to the GAAP measure of total long- term debt, or any other measure of financial performance presented in accordance with GAAP. December 31, September 30, June 30, March 31, 2025 2025 2025 2025 (In thousands) Net Debt(1) Short-term debt $ 165,200 $ 178,600 $ 189,300 $ 148,800 Long-term debt, net 3,627,720 3,956,330 3,736,972 3,568,457 Plus: Debt issuance costs, net 25,280 26,670 28,028 26,543 Total debt 3,818,200 4,161,600 3,954,300 3,743,800 Less: Cash and cash equivalents 3,951 7,737 10,733 8,845 Net debt (non-GAAP) $ 3,814,249 $ 4,153,863 $ 3,943,567 $ 3,734,955
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Non-GAAP Measures Reconciliation 18 (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 allocat ed 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 t he 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 contrac t 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) Adjusted EBITDA is defined as net income including noncontrolling interest adjusted for interest, taxes, depreciation and amorti zation, gain or loss on disposal of assets and debt extinguishment, the proportionate EBITDA from our EMI pipelines, share- based compensation expense, noncash increases and decreases related to commodity hedging activities, integration and transaction costs , litigation costs and extraordinary losses and unusual or non- recurring charges. Adjusted EBITDA provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted EBITDA should not be considered as an alternative to the GAAP measure of net income including non-controlling interest or any other measure of financial performance presented in accordance with GAAP. Midstream Logistics Pipeline Transportation Corporate and Other(1) Elimination Consolidated (In thousands) For the Quarter Ended December 31, 2025 Revenue $ 424,712 $ 2,391 $ — $ — $ 427,103 Other revenue 3,314 2 — 3,316 Intersegment revenue(2) — 6,941 — (6,941) — Total segment operating revenue 428,026 9,334 — (6,941) 430,419 Costs of sales (excluding depreciation and amortization expense) (169,990) (506) — (170,496) Intersegment costs of sales (6,941) 6,941 — Operating expenses(3) (71,338) (681) — (72,019) General and administrative expenses (5,148) (220) (33,316) (38,684) Proportionate EMI EBITDA — 76,103 — 76,103 Other segment items(4) (1,527) — 28,299 — 26,772 Segment Adjusted EBITDA(5) $ 173,082 $ 84,030 $ (5,017) $ — $ 252,095
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Non-GAAP Measures Reconciliation 19 Midstream Logistics Pipeline Transportation Corporate and Other(1) Elimination Consolidated (In thousands) For the Quarter Ended December 31, 2024 Revenue $ 379,662 $ 2,522 $ — $ — $ 382,184 Other revenue 3,530 2 — 3,532 Intersegment revenue(2) — 6,811 — (6,811) — Total segment operating revenue 383,192 9,335 — (6,811) 385,716 Costs of sales (excluding depreciation and amortization expense) (175,850) 18 — — (175,832) Intersegment costs of sales (6,811) 6,811 — Operating expenses(3) (58,325) (681) — — (59,006) General and administrative expenses (5,855) (427) (33,029) — (39,311) Proportionate EMI EBITDA — 84,113 — — 84,113 Other segment items(4) 14,368 — 27,426 — 41,794 Segment Adjusted EBITDA(5) $ 150,719 $ 92,358 $ (5,603) $ — $ 237,474 (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 allocat ed 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 t he 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 contrac t 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) Adjusted EBITDA is defined as net income including noncontrolling interest adjusted for interest, taxes, depreciation and amorti zation, gain or loss on disposal of assets and debt extinguishment, the proportionate EBITDA from our EMI pipelines, share- based compensation expense, noncash increases and decreases related to commodity hedging activities, integration and transaction costs , litigation costs and extraordinary losses and unusual or non- recurring charges. Adjusted EBITDA provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted EBITDA should not be considered as an alternative to the GAAP measure of net income including non-controlling interest or any other measure of financial performance presented in accordance with GAAP.