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KINETIK Investor Presentation August 2026 The Permian is Kinetik
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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, 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 filed with the SEC on February 26, 2026. 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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Who is Kinetik? A business poised to capitalize on a world class, low-cost supply basin and strong natural gas/NGL fundamentals 3 NYSE-listed corporation and included in the S&P Small Cap 600 index Pure-play midstream company in the Permian Basin – the cornerstone of US Oil & Gas industry Integrated natural gas super-system spanning the Delaware Basin providing customers with unique access to multiple downstream markets at premium pricing Strong track record of industry leading volume growth that has outpaced underlying Permian Basin growth and is expected to continue Levered to strong natural gas fundamentals driven by gassier production, increased takeaway capacity to the Gulf Coast, rising global LNG demand, and emerging power generation growth Attractive financial profile and a growth-oriented capital allocation framework provide flexibility for high-return capital deployment
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Reached FID on KLII in May 2026, expanding processing capacity by 300 MMcf/d ECCC Pipeline placed into service and starting right-of-way procurement for anticipated 2027 expansion Drilling operations underway on the AGI well at Kings Landing, on track for YE 2026 in-service Advancing construction on Diamond Volt with in-service anticipated in 2Q27 Executed long-term natural gas sales agreement starting in 2027 with Gulf Coast netback pricing Signed new residue gas and NGL transport agreements for Delaware North processing complexes Commenced long-lead equipment procurement for processing capacity expansion beyond KLII Recent highlights Strong progress across strategic projects and commercial initiatives 4
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A full-service, integrated midstream model 5 Fee-based business with mission critical infrastructure • Extensive system across Texas and New Mexico • 5,000+ miles of low- and high-pressure gathering lines spanning the Delaware Basin • 825,000+ horsepower of compression Gas gathering Gas processing and treating Intrabasin pipelines Long-haul pipelinesCrude and produced water solutions Diversified customer base 90+ producers One of the largest processors in the Delaware Basin Represents ~6% of 2026E Adjusted EBITDA(2) 100% owned and operated intrabasin pipeline connectivity Strategic ownership in Permian to US Gulf Coast pipelines • 8 complexes with over 2.7 Bcf/d of processing capacity (1) • System-wide amine treating and 31.5 MMcf/d of permitted AGI capacity • Super-system connectivity provides enhanced reliability and efficiencies • Fee-based crude and water gathering businesses complement gas business • Crude oil gathering, stabilization, and storage • Produced water gathering and disposal services (1) Upon completion of 300 MMcf/d processing capacity expansion at Kings Landing. (2) A non-GAAP measure. See “Non-GAAP Financial Measures Reconciliation” for a reconciliation to the nearest comparable GAAP measure. • 1 Bcf/d Delaware Link residue gas pipeline offers direct connectivity to Waha • 580 Mb/d Kinetik NGL enhances flow assurance and margin expansion • ~150 MMcf/d ECCC Pipeline optimizes treating and processing capacity • PHP (residue gas) and Shin Oak (NGLs) • Interconnectivity to downstream markets and access to premium pricing markets for customers • Transportation capacity leases on other new residue gas pipelines from Waha to the Gulf Coast Kinetik’s interconnected super-system and unique access to multiple downstream markets offer Delaware Basin customers reliability and enhanced economic value
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Processing Facilities Kinetik System Under Construction ECCC Pipeline Delaware Link Kinetik NGL PHP Shin Oak PHP Transport Lease Pipelines Energy Markets LNG Projects Serviced Acreage Broad system reach across the Delaware Basin Unique downstream connectivity positioned to support continued basin-wide growth 6 Sabine Pass Agua Dulce Corpus Christi Mont BelvieuKaty Houston Central Freeport Cheniere CCL Next Decade Rio Grande LNG Freeport LNG Port Arthur LNG Exports to Mexico Midland Waha Kings Landing Maljamar Dagger Draw Pecos Bend Pecos Diamond Cryo Sierra Grande East Toyah Delaware Link Kinetik NGL Sweeny Texas City Global LNG and ethane / LPG exports Golden Pass LNG ECCC Pipeline
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-$5.00 -$4.00 -$3.00 -$2.00 -$1.00 $0.00 $1.00 $2.00 $3.00 $4.00 8 12 16 20 24 28 32 Transportation Expansions Permian Residue Transport Volumes Utilization Waha Forward Market Pricing ($/Mmbtu) 2025 2030 2035 2040 2045 2050 Delaware Permian Levered to improving natural gas fundamentals in the Permian Structural tailwinds from gassier production, increased takeaway capacity, and surging power demand 7 (1) Source: Wood Mackenzie Lower 48 Oil and Gas Supply Outlook H2 2025, December 2025. (2) Source: Enverus and internal estimates. Waha market forward pricing as of August 3, 2026. Expansions i nclude Whitewater Midstream’s Blackcomb pipeline (2.5 Bcf/d) and Eiger Express pipeline (3.7 Bcf/d), ET’s Hugh Brinson pipeline (2.2 Bcf/d), and Kinder Mor gan’s GCX expansion (0.6 Bcf/d). (3) Source: ERCOT Adjusted Large Load Breakdown. Gas-to-Oil Ratios (GOR)(1) Takeaway Capacity Constraints Alleviated(2) Data Centers Drive ERCOT Power Demand(3) By 2050, the Delaware Basin GOR is expected to increase by nearly 75% to ~7.1 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 6.2 Mcf/bbl 7.1 Mcf/bbl 3.5 Mcf/bbl 4.0 Mcf/bbl ~5 Bcf/d of egress capacity additions by 1Q27 to drive utilization below 90% for next two years, reducing Waha discount to GC Further, ~6 Bcf/d of capacity online in 2028 and 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 Bcf/d 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
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Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Sep-26 Dec-26 Track record of volume growth Kinetik processed gas volume growth to outpace the underlying Permian Basin 8 Indexed Gas Volume Growth Since 2021(1) 57% 53% Kinetik Permian Gas Growth (1) Source: EIA Natural Gas Permian Marketed Production as of July 7, 2026, and internal estimates. Kinetik processed gas volume growth and Permian gas production growth indexed beginning 4Q21. 2026 estimates reflect internal forecast. Kinetik processed gas volume growth accelerates in 2H26 supported by ECCC Pipeline in-service, customer pull-forwards, and ramp to full utilization at Kings Landing Curtailments
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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 9 Kings Landing Complex • Construction and drilling operations underway on the AGI and sour conversion project, in-service expected by YE 2026 KLII • FID in May 2026 on 300 MMcf/d processing capacity expansion, completion expected mid-2028 • Delaware North total sour gas processing capacity of >700 MMcf/d expected upon completion Next Cryo • Evaluating future processing capacity expansion in NM or TX • Board authorized procurement of long-lead equipment to align supply chain with accelerating customer development plans and overall activity ECCC Pipeline • Placed in-service large diameter, high-pressure pipeline connecting Delaware North to South • Expandable to ~300 MMcf/d of throughput capacity to support NM customers' development plans • Initiated right-of-way procurement to support an anticipated expansion in 2027 Power Related Opportunities • Advancing construction of Diamond Volt, the 40 MW BTM power generation project at Diamond Cryo • Pipeline connections to supply residue natural gas to the new 1,350 MW CPV Basin Ranch Energy Center in Ward County, TX and now the new 452 MW Pecos Power Plant in Reeves County, TX Delaware North system Processing Facilities ECCC Pipeline Delaware South system Serviced Acreage
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Interconnecting Texas and New Mexico Delivering on our vision of a fully connected super-system 10 ECCC Pipeline Highlights Large diameter, high-pressure pipeline connector from Eddy County, NM to Culberson County, TX ~150 MMcf/d of rich gas throughput capacity; expandable to ~300 MMcf/d Placed in-service with right-of-way procurement already underway for anticipated expansion “Drains” sweet gas from Delaware North to Delaware South Optimizes our treating and processing capacity at Delaware South and Delaware North Kings Landing Maljamar Dagger Draw Sierra Grande Sweet gas
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2025 2026 2027 2028 2029 Existing Kings Landing AGI - Phase 1 Kings Landing AGI - Phase 2 Permitted Capacity 31.5 MMcf/d Permitted 11.5 MMcf/d Permitted Scalable sour gas handling platform in Delaware North Existing sour gas infrastructure and planned expansion support meaningful upside 11 Over 31 MMcf/d of permitted total acid gas capacity enables significant resource development across Kinetik footprint Actively pursuing a number of sour gas opportunities that could provide meaningful margin uplift over the next few years 6.5 MMcf/d Operational 26.5 MMcf/d Operational 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 Delaware North Total Acid Gas Capacity Avalon + 1st Bone Spring Net Pay(1) (1) Source: Jefferies, Enverus, and internal estimates. 10.5 MMcf/d Operational
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Continued processing capacity expansion in New Mexico Supporting customers’ robust volume growth outlook and unlocking sour gas opportunity 12 KLII adds 300 MMcf/d of processing capacity at Kings Landing Underscored by accelerating customer demand for sour gas treating and processing capacity Expected completion in Mid-2028 Estimated capital required is ~$260MM Increases system-wide gas processing capacity to >2.7 Bcf/d AGI and sour conversion project remains on track Construction and drilling operations on AGI well underway Ample sour gas treating capacity for processing expansion Phase 1 in-service expected by YE 2026 Kings Landing Complex Update Delaware North Processing Access(1) (MMcf/d) Nearly 1 Bcf/d of processing capacity access will exist for Delaware North customers upon completion of KLII and anticipated expansion of ECCC Pipeline Future opportunity for processing expansion with KLIII or greenfield complex at the state line offset ECCC ~200 ~410 ~560 ~660 ~960 2024 2025 2026 2027 2028 Existing Capacity ECCC Pipeline Anticipated ECCC Expansion KLII (1) Capacities expected as of year-end.
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Guidance Price Inputs (Jul. 2026) Previous Guidance (Feb. 2026) Commodity 2H FY FY WTI ($/Bbl) $75.76 $78.65 $61.58 HSC Natural Gas ($/MMBtu) $2.54 $2.83 $3.34 Waha Natural Gas ($/MMBtu) $1.68 ($0.26) $0.44 NGLs ($/Gal) $0.62 $0.62 $0.52 Commodity % Change in Guidance Price Input Potential Impact to Adjusted EBITDA(1) WTI / C3+ +/- 25% +/- $10MM Natural Gas / Ethane +/- $10MM Waha – HSC Basis Spread +/- $5MM 2025A YoY Growth 2026E Expectations Permian Production(4) Natural Gas 11% Mid-single-digit growth Crude Oil 5% Low-single-digit growth Kinetik Natural Gas 10% Mid- to high-single-digit growth Crude Oil 43% High-teens growth Produced Water 6% Low-single-digit decline 2025A Capital Expenditures 2026E Capital Expenditures 2025A Adjusted EBITDA 2026E Adjusted EBITDA Fixed Fee ~80% Commodity ~20% 2026E Gross Profit Sources 2026 guidance and assumptions Key expectations reflected in full year guidance 13 (1) A non-GAAP measure. See “Non-GAAP Financial Measures Reconciliation.” (2) Net of contributions in aid of construction, asset disposal proceeds, and returns of invested capital from unconsolidated aff iliates. (3) 2025 Adjusted EBITDA, excluding approximately $54MM of actual Adjusted EBITDA contributions from EPIC Crude, totals $933MM. (4) Source: EIA Natural Gas Permian Marketed Production and Permian Crude Oil Production as of July 7, 2026. (5) Guidance Price Input assumes pricing as of July 28, 2026. Previous guidance strip pricing as of February 13, 2026. (6) Sensitivity applied July to December 2026. 2026 Commodity Price Assumptions(5) Revised 2026 Financial Guidance Volume Assumptions $497MM $1.04B - $1.1B $988MM 2026 Commodity Price Sensitivities(6) ~$560MM (1,3) (1) (2) (2)
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Processed Gas Volumes (Bcf/d) Key Drivers of Adjusted EBITDA(1) Guidance Update Prev. 2026E Adj. EBITDA Guidance 1H26 Curtailment Impacts 2H26 Volume Growth Expectations Favorable Commodity Pricing System Performance & Optimization Pipeline Transportation Revised 2026E Adj. EBITDA Guidance Adjusted EBITDA guidance and FY volume outlook Strong execution and improved commodity price outlook drive accelerated earnings and volume growth in 2H26 14(1) A non-GAAP measure. See “Non-GAAP Financial Measures Reconciliation.” $1.04B – 1.1B$950MM – 1.05B 1.79 1.81 1.74 FY25 1Q26 2Q26 4Q26E Processed Volumes Curtailments Elevated price-related curtailments in 1H26 Stronger volumes in 2H26 with improved Waha dynamics Higher WTI and C3+ pricing since February and wider Waha to HSC basis spreads in 1H26 Margin optimization from continued system and operational outperformance, including improved NGL recoveries and higher condensate yields Pipeline Transportation outperforming initial expectations ~250 MMcf/d of Waha price-related curtailments in 2Q26, with average curtailments expected to ease to ~25 MMcf/d for the balance of the year Expect to exit 2026 with processed gas volumes ~2.2 Bcf/d Plans for processing capacity expansion beyond KLII underpin strong growth trajectory of Kinetik’s system ~2.2 Bcf/d
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Prev. 2026E Capital Expenditures Guidance KLII FID Acceleration of Customer Development Plans Operations Optimization Opportunities Long-lead Procurement for Next Cryo & ECCC Expansion Revised 2026E Capital Expenditures Guidance 2026E Capital Expenditures guidance Current capital projects drive meaningful opportunity and earnings growth over next several years 15(1) Net of contributions in aid of construction, asset disposal proceeds, and returns of invested capital from unconsolidated aff iliates. $450MM – $510MM ~$560MM Allocation of 2026E Capital Expenditures(1) Key Drivers of Capital Expenditures(1) Guidance Update Field 44% Facilities 30% Trunklines 15% Maintenance 11% Delaware North 64% Delaware South 36%
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Objectives Foundation Target Leverage Ratio(1) of 3.5x to 4.0x Capital Allocation framework Compounding long-term value through high-return reinvestment and disciplined capital returns 16 (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: Reinvesting ~50% of 2026 Adjusted EBITDA(1) into attractive, high-return organic growth projects Dividend increases: 3% to 5% per year until Dividend Coverage of 1.6x(1,2) reached; aligned with earnings growth thereafter(3) Share Repurchases: Utilized ~36% of Repurchase Authorization; central to longer term incremental returns(3) Maximize share price outcomes Sustain a resilient, through-cycle balance sheet Elevated near-term reinvestment today builds the earnings base that funds growing returns tomorrow
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Glossary of terms • Adjusted EBITDA (EBITDA) is defined as net income 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, share-based compensation expense, noncash increases and decreases related to commodity hedging activities, integration and transaction costs and extraordinary losses and unusual or non-recurring charges. • Capital Expenditures is defined as costs incurred in midstream activities plus investments in unconsolidated affiliates, less any contributions in aid of construction, asset disposal proceeds, and 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, 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 18
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Non-GAAP Measures Reconciliation 19 (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 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 includi ng non-controlling interest or any other measure of financial performance presented in accordance with GAAP. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In thousands) Net Income Including Noncontrolling Interests to Adjusted EBITDA Net income including noncontrolling interest (GAAP) $ 123,113 $ 74,416 $ 117,988 $ 93,678 Add back: Interest expense 54,121 56,514 107,541 112,228 Income tax expense 14,423 7,327 13,645 9,894 Depreciation and amortization expenses 103,331 93,763 205,164 186,436 Amortization of contract costs 2,054 1,655 4,004 3,310 Proportionate EBITDA from unconsolidated affiliates 74,878 88,100 144,907 175,630 Share-based compensation 9,064 9,695 29,727 30,348 Loss on debt extinguishment — 635 — 635 Integration costs — 2,433 368 5,971 Litigation costs 5,375 2,381 16,988 5,396 Other one-time costs or amortization 1,739 2,805 3,353 6,396 Deduct: Interest income 297 318 464 1,108 Gain on disposal of assets, net 36 25 55 65 Commodity hedging unrealized gain 49,598 37,743 2,611 19,616 Equity in earnings of unconsolidated affiliates 57,383 58,705 108,571 116,183 Adjusted EBITDA(1) (non-GAAP) $ 280,784 $ 242,933 $ 531,984 $ 492,950
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Six Months Ended June 30, 2026 2025 (In thousands) Reconciliation of net cash provided by operating activities to Adjusted EBITDA Net cash provided by operating activities $ 341,520 $ 305,907 Net changes in operating assets and liabilities 46,082 11,559 Interest expense 107,541 112,228 Amortization of deferred financing costs (3,913) (3,984) Current income tax expense 2 485 Returns on invested capital from unconsolidated affiliates (130,222) (126,941) Proportionate EBITDA from unconsolidated affiliates 144,907 175,630 Derivative fair value adjustment and settlement 8,433 21,027 Commodity hedging unrealized gain (2,611) (19,616) Interest income (464) (1,108) Integration costs 368 5,971 Litigation costs 16,988 5,396 Other one-time cost or amortization 3,353 6,396 Adjusted EBITDA(1) (non-GAAP) $ 531,984 $ 492,950 Non-GAAP Measures Reconciliation 20 (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 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 includi ng non-controlling interest or any other measure of financial performance presented in accordance with GAAP.
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Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In thousands) Distributable Cash Flow(1) Adjusted EBITDA (non-GAAP) $ 280,784 $ 242,933 $ 531,984 $ 492,950 Proportionate EBITDA from unconsolidated affiliates (74,878) (88,100) (144,907) (175,630) Returns on invested capital from unconsolidated affiliates 61,913 63,604 130,222 126,941 Interest expense (54,121) (56,514) (107,541) (112,228) Unrealized gain on interest rate swaps (2,476) (741) (5,822) (1,411) Maintenance capital expenditures (16,298) (7,879) (28,181) (20,338) Distributable cash flow (non-GAAP) $ 194,924 $ 153,303 $ 375,755 $ 310,284 Free Cash Flow(2) Distributable cash flow (non-GAAP) $ 194,924 $ 153,303 $ 375,755 $ 310,284 Growth capital expenditures (91,088) (123,498) (171,315) (189,210) Investments in unconsolidated affiliates — (97) — (985) Returns of invested capital from unconsolidated affiliates — 2,293 — 2,853 Contributions in aid of construction 1,367 2,914 2,144 3,339 Free cash flow (non-GAAP) $ 105,203 $ 34,915 $ 206,584 $ 126,281 Non-GAAP Measures Reconciliation 21 (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 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 financ ial 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 period and to compare the cash generation performance for specific periods to the amount of cash dividends that we make.
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Non-GAAP Measures Reconciliation 22 (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 June 30, March 31, December 31, 2026 2026 2025 (In thousands) Net Debt(1) Short-term debt $ 225,000 $ 187,100 $ 165,200 Long-term debt, net 3,700,562 3,644,128 3,627,720 Plus: Debt issuance costs, net 22,438 23,872 25,280 Total debt 3,948,000 3,855,100 3,818,200 Less: Cash and cash equivalents 7,830 720 3,951 Net debt (non-GAAP) $ 3,940,170 $ 3,854,380 $ 3,814,249
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Midstream Logistics Pipeline Transportation Corporate and Other(1) Elimination Consolidated For the Three Months Ended June 30, 2026 (In thousands) Revenue $ 575,599 $ 2,092 $ — $ — $ 577,691 Other Revenue 3,737 12 — — 3,749 Intersegment revenue(2) — 6,556 — (6,556) — Total segment operating revenue 579,336 8,660 — (6,556) 581,440 Costs of sales (excluding depreciation and amortization expense) (238,087) 495 — — (237,592) Intersegment costs of sales (6,556) — — 6,556 — Operating expenses(3) (79,512) (803) — — (80,315) General and administrative expenses (4,509) (229) (21,523) — (26,261) Proportionate EMI EBITDA — 74,878 — — 74,878 Other segment items(4) (45,906) — 14,540 — (31,366) Segment Adjusted EBITDA(5) $ 204,766 $ 83,001 $ (6,983) $ — $ 280,784 Non-GAAP Measures Reconciliation 23 (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 are included here to reconcile the operating segments’ profit and los s with the Company’s consolidated results. (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, commodity hedging unrealized gain or loss, integration costs, litigation costs and other one- time costs or amortization. (5) Adjusted EBITDA is defined as net income or loss including noncontrolling interest adjusted for interest, taxes, depreciation and amortization, gain or loss on disposal of assets, the proportionate EBITDA from our EMI pipelines, share- based compensation expense, noncash increases and decreases related to commodity hedging activities, integration and transaction costs and extraord inary 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 performa nce. 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.
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Non-GAAP Measures Reconciliation 24 (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 are included here to reconcile the operating segments’ profit and los s with the Company’s consolidated results. (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, commodity hedging unrealized gain or loss, integration costs, litigation costs and other one- time costs or amortization. (5) Adjusted EBITDA is defined as net income or loss including noncontrolling interest adjusted for interest, taxes, depreciation and amortization, gain or loss on disposal of assets, the proportionate EBITDA from our EMI pipelines, share- based compensation expense, noncash increases and decreases related to commodity hedging activities, integration and transaction costs and extraord inary 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 performa nce. 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 For the Three Months Ended June 30, 2025 (In thousands) Revenue $ 421,813 $ 2,431 $ — $ — $ 424,244 Other Revenue 2,492 2 — — 2,494 Intersegment revenue(2) — 7,674 — (7,674) — Total segment operating revenue 424,305 10,107 — (7,674) 426,738 Costs of sales (excluding depreciation and amortization expense) (156,263) (434) — — (156,697) Intersegment costs of sales (7,674) — — 7,674 — Operating expenses(3) (73,888) (716) — — (74,604) General and administrative expenses (4,996) (288) (18,960) — (24,244) Proportionate EMI EBITDA — 88,100 — — 88,100 Other segment items(4) (30,277) — 13,917 — (16,360) Segment Adjusted EBITDA(5) $ 151,207 $ 96,769 $ (5,043) $ — $ 242,933