Kinetik Holdings Inc

Hello, everyone. Thank you for joining us and welcome to the Kinetic First Quarter 2026 results. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Alex Durkee, Head of Investor Relations. Please go ahead.

Good morning, and welcome to Kinetic's first quarter 2026 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. As a reminder, today's discussion will include forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ materially. For a discussion of these factors, please refer to our SEC filings. We will also reference certain non-GAAP financial measures. Reconciliations to the most comparable GAAP measures can be found in our earnings materials and on our website. With that, I will turn the call over to Jamie.

Thank you, Alex. Good morning, everyone. Kinetic delivered record earnings in the first quarter. This reflects key execution across our three core pillars, commercial, operations, and financials. Before walking through each in more detail, I wanted to briefly touch on recent geopolitical developments. The global macroeconomic landscape has shifted meaningfully since reporting fourth quarter 2025 results. While Trevor will cover the implications that we see today in more detail, we believe that Kinetic is incredibly well positioned as these dynamics continue to play out. Commercially, Our team has been highly productive. We've seen strong conversion of opportunities into new and amended agreements across both Texas and New Mexico. Over the past few months, we've added new customers across our gas, crude, and water service offerings, while continuing to advance our strategy of revising commercial terms and extending legacy Durango contracts. During the quarter, we completed a significant contract amendment with a large existing customer in New Mexico that expands the original dedicated acreage by roughly 25%. It consolidates multiple agreements into a single contract and extends terms through 2039. As a result, approximately 75% of legacy Durango gas processing volumes have now been amended over the past four months. Collectively, these new and amended contracts extend terms into the mid and late 2030s, increase margin, expand dedicated acreage, broaden services rendered, provide downstream control of plant products, and reinforce long-term visibility across our New Mexico system. As we've said before, the message from customers has been clear. Incremental sour gas treating and processing capacity is a necessity to support their development plans in New Mexico. Our strong runtime performance at King's Landing and continued progress on the sour conversion project, combined with the recent contract amendments and new agreements, have created strong commercial momentum in support of potentially advancing a processing capacity expansion at King's Landing Complex. We also continue to pursue highly capital-efficient power generation-related opportunities. We signed a zero-capex interconnection with Pecos Power, connecting our Delaware Link residue gas pipeline to the Pecos Power plant in Rees County. Combined with the CPV Basin Ranch interconnection announced late last year, we have again demonstrated a fee-based template for monetizing our existing footprint as Permian power generation demand grows. On the operations front, field operations executed at a high level this quarter, delivering reliable performance across the system, while maintaining a strong focus on safety. We've also made solid progress across our capital projects in the quarter. We are nearing completion now of the ECCC pipeline within service later this quarter. At King's Landing, we received all required approvals from the BLM and the NMOCD. allowing us to proceed with the AGI and sour gas conversion project for the full 20 million cubic feet per day of total acid gas, or TAG, capacity. All long lead materials have been ordered, construction is underway, and we plan to spud the first acid gas injection well this summer. Once complete, the project will enable us to handle elevated H2S and CO2 levels across all three Delaware North processing complexes, providing total operational tag capacity of 26.5 million cubic feet per day and permitted capacity in excess of 31 million cubic feet per day. Phase one of the SALAR conversion for King's Landing remains on track for in-service by year-end 2026. and meaningfully enhances the long-term value of our New Mexico business. In Delaware South, we advanced our 40 megawatt behind-the-meter power generation solution at Diamond Cryer. Turbine equipment has started to arrive on site, and engineering, procurement, and permitting work is well underway. And financially, we remain highly focused on executing on our priorities. including leveraging data and technology to drive efficiency across our business. In February, we began our pilot program with Palantir and have been encouraged by early results which are reinforcing more data-driven execution across the organization. Now, at the same time, our finance and operations teams are progressing on our operating cost reduction initiatives. Importantly, Operating and G&A expenses are tracking in line with our budget estimates. And through our efforts so far, the teams have identified additional efficiencies that optimize our cost structure for 2027 and thereafter. At the end of last year, we secured more residue gas transport capacity to the Gulf Coast, which provided financial insulation to the pronounced price-related production shut-ins. we had seen and expect for much of 2026. As new Gulf Coast takeaway capacity comes online and hub differentials tighten into 2027, Kinetic remains well-positioned as curtailed volumes return and gross margin normalises, reducing the contribution from this spread-driven financial offset. We remain extremely vigilant about managing our medium and long-term Gulf Coast transportation capacity portfolio. Not only is it important for our customers to receive Gulf Coast hub pricing, but also critical for growing with new customers. We recently secured additional Gulf Coast pricing exposure starting in 2028. And we also have our European LNG price contract with INEOS starting in early 2027. Since 2018, we have shown that we think outside the box and believe it is one of our corporate core strengths to creatively find premium pricing solutions for our customers' natural gas. Stepping back, the contracts we have signed, the commercial opportunities we are pursuing, and the takeaway we have secured all extend Kinetics earnings durability well into the next decade. The near-term gas price environment is a cycle to manage through, not a thesis to revisit. We are managing through it from a position of strength and our confidence in the multi-year plan has only increased over the passage of the last 90 days. And with that, I'll turn it over to Trevor.