Kinetik Holdings Inc

Good morning, all, and thank you for joining us for the Kinetics second quarter 2025 results call. My name is Carly, and I'll be coordinating the call today. If you'd like to register a question during the call, you can do so by pressing star followed by one on your telephone keypad, and to remove yourself from line of questioning, be star followed by two. I'd like to hand over to our host, Alex Durkee. The floor is yours.

Thank you. Good morning, and welcome to Kinetics second quarter 2025 earnings conference call. Our speakers today are Jamie Welch, President and Chief Executive Officer, and Trevor Howard, Senior Vice President and Chief Financial Officer. Other members of our senior management team are also in attendance for this morning's call. The press release we issued yesterday, the slide presentation, and access to the webcast for today's call are available at www.kinetic.com. Before we begin, I would like to remind all listeners that our remarks, including the question and answer section, will provide forward-looking statements, and actual results could differ from what is described in these statements. These statements are not guarantees of future performance and involve a number of risks and assumptions. We may also provide certain performance measures that do not conform to U.S. GAAP. We've provided schedules that reconcile these non-GAAP measures as part of our earnings press release. After our prepared remarks, we will open the call to Q&A. With that, I will turn the call over to Jamie.

Thank you, Alex. Good morning, everyone, and thanks for joining our call today. Kinetic's second quarter results reflect our resilience and relentless focus on execution as we navigated through macroeconomic uncertainty and global geopolitical pressures. I am proud of what our team accomplished, despite the noise that has continued to persist. During the quarter, we made significant progress across our portfolio of capital growth projects. Starting with King's Landing, commissioning of the complex commenced in June and has continued. Through the next six weeks, we will be fully testing and starting up the front-end aiming plant, and we expect to have the necessary electric power to also fully load the facility. Taken together, we expect to ramp to full commercial in-service by late September. In speaking with our producer customers in New Mexico, we continue to build conviction on just how highly economic the rock formation is in Northern Eddy and Lee counties. However, much of the associated gas carries substantially higher CO2 and H2S content. To support further development of the resource play, we have filed a permit for an acid gas injection well at King's Landing to sequester the growing levels of CO2 and H2S. Lead times for specialty equipment and materials can be upwards of a year, So our team has been prudent in identifying these items to jumpstart this process. We expect to receive approval to proceed by year end. Upon in service of the AGI well at King's Landing, Kinetics total acid gas or TAG capacity is expected to more than triple and further position us to be a best in class gas gatherer, treater and processor with a differentiated service offering in Northern Eddy and Lee counties. We look forward to sharing more as we progress this opportunity. To support the conversion of Delaware North to a primarily sour gas system, ECCC pipeline is a critical component to move sweet, rich gas from New Mexico to Texas and free up additional processing capacity in New Mexico. Construction has started and we expect in service in the first half of 2026. The proposed scope includes restarting our Sierra Grande processing facility and adding boost compression there. We have the ability to increase ECCC's throughput capacity to approximately 300 million cubic feet per day for sweet gas with system looping in Texas. Looking ahead, the investments we have made and continue to make across our system provide a multi-year earnings tailwind through the end of this decade. First, King's Landing is our beachhead position in the Northern Delaware. Our conviction continues to grow regarding expanding our footprint and volumes around this complex. Our commercial team has been very active advancing some really exciting opportunities And with much of the pre-FID work for a processing expansion at King's Landing behind us and permitting for acid gas injection in progress, commercialization of an expansion and sour gas conversion remains on track. Our low and high pressure build out in Eddy County continues to perform better than expected with well results exceeding expectations. customers and other active producers continue to add inventory in the area, increasing the project earnings potential and duration. Acquired earlier this year, the Barilla Draw gas and crude gathering systems are performing well and are expected to contribute to earnings growth throughout the decade. Additionally, WellConnex in Lee County in the second half of this year will contribute additional volume increases. So based on the current estimates and with continued commercial success, we expect that additional processing capacity besides King's Landing 2 is likely to be needed inside the next 18 months as our Delaware South processing capacity is fully utilized with ECCC pipeline. We also remain focused on optimizing our cost structure. In the past few years, we have experienced and managed meaningful cost inflation especially with electricity and leased compression. And while we think the worst of it is behind us, it underpins our conviction to pursue the behind-the-meter power generation opportunity in Rees County and the owned compression solution over the next several years. Both projects would compete for capital and provide long-term structural solutions to offset these inflationary pressures. So before I turn the call over to Trevor to discuss second quarter results. I want to reiterate the opportunity set in front of us today. Our organic and inorganic growth pursuits over the past year and a half have positioned the company for accelerating growth as we head into 2026. We continue to expect fourth quarter 2025 annualized adjusted EBITDA of approximately $1.2 billion. which represents 24% growth year over year. And this is just the beginning of a very bright multi-year earnings growth and free cash flow generation outlook that presents a compelling investment opportunity for existing and future shareholders. So with that, I'll now turn the call over to Trevor.