Kinetik Holdings Inc

Hello, everyone. Thank you for joining us and welcome to the Kinetics Second 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 Kinetics' second 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. As a reminder, today's discussion will include forward-looking statements. Please refer to our SEC filings for a discussion of the risks that could cause actual results to differ materially. We will also reference certain non-GAAP financial measures. Reconciliations 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 the strongest financial results in our history. Our performance was driven by exceptional operational execution, strong system performance, and a supportive commodity price environment. I'm proud of our team whose focus, discipline and commitment to excellence continue to drive these results. Accordingly, we're updating our full year 2026 adjusted EBITDA guidance upwards by $70 million at the midpoint or 7%, reflecting the strong first half performance and confidence in the outlook for the remainder of the year. Trevor will discuss the key drivers behind our guidance update in more detail shortly. The confidence embedded in our revised outlook is reinforced by what we're seeing across our footprint today. Customer development activity continues to build. Commercial momentum is the strongest it has been since our inception in 2022 and our team is executing at a very high level. Combined with improved market conditions, these trends position us well for a strong finish to 2026 and tremendous follow-through into 2027. We are seeing broad-based momentum across our integrated gathering, processing and downstream platform. Conditions across the Permian continue to improve as Waha Pricing has recovered from the extreme dislocations experienced for the first five plus months of this year, driving a step change in producer curtailments since mid-June. At the same time, the more constructive crude oil environment continues to support attractive development economics, and we're seeing a continuation of customer activity pull forward across our footprint, with some of that benefit to materialize in the second half of 2026. Reflecting these trends, Permian recount has increased 8% since February, with over 60% of that growth coming from the Delaware Basin. Against this backdrop of accelerating activity and growing producer demand, we continue to proactively position our system for the next phase of development. In May, we reached FID on King's Landing 2. The message from customers has been crystal clear. Incremental sour gas treating and processing capacity is needed to support their development plans. As such, we elected to increase the processing capacity of KL2 by 50% to 300 million cubic feet per day. Since announcing the expansion, we have already purchased cryoprocessing, amine, and residue compression equipment. and the project is now expected to be completed in mid-2028, earlier than previously communicated. Upon completion, Delaware North's sour gas processing capacity will exceed 700 million cubic feet per day and Kinetic's total system-wide gas processing capacity will surpass 2.7 billion cubic feet per day. Importantly, we're already looking beyond KL2. This week, Kinetics Board authorized procurement of long lead equipment for the next stage of processing capacity expansion, proactively aligning our supply chain with accelerating customer demand. This positions us to manage equipment lead times, preserve development flexibility, and efficiently support the next phase of growth on our systems. We have also sanctioned the commencement of work on expanding the capacity of ECCC. Our willingness to materially reinvest in our business reflects not only the visibility we have into customer development plans, but also our conviction in the long-term growth outlook for the Permian Basin. To that end, the market continues to recognize The Permian's critical role in meeting future U.S. natural gas demand growth. With LNG exports, power generation and data center development driving incremental consumption, the question has increasingly become where the gas will come from and how it will reach end markets. The Permian remains uniquely positioned to answer that call with more than 11 billion cubic feet per day of new basin energy. egress capacity that has been sanctioned through 2029. Against this backdrop, Kinetics integrated business is becoming increasingly valuable to customers seeking both reliable flow assurance and premium priced market access. During the quarter, we executed several commercial agreements that further strengthen the value proposition of our Permian to Gulf Coast platform while expanding market access and optionality for both existing and future customers. First, we secured incremental firm residue gas access to Gulf Coast markets beginning in 2027, providing customers with enhanced flow assurance and premium net back pricing. We also signed new residue gas and NGL transportation agreements supporting our Delaware North processing complexes, increasing operational flexibility, and securing critical downstream capacity as activity and volumes continue to grow across our New Mexico business. These agreements are excellent examples of our broader strategy to reduce our customers' exposure to in-basin pricing volatility by expanding access to premium end markets. More importantly, they reflect our differentiated approach to commercializing the value of Kinetic's integrated platform. Rather than competing solely on GMP services, we continue to leverage our downstream assets and market connectivity to deliver a comprehensive solution for producer customers. Operationally, our team executed very well during the quarter. a significant driver of our record results with sustained system-wide performance, reflecting both the strength of our operations and our continued focus on optimization opportunities across the system. The ECCC pipeline has been placed into service, officially establishing that north-to-south connection across the western portion of our system between Eddy and Culberson counties. Rich gas volumes on the pipeline are expected to increase throughout the balance of the year as King's Landing reaches full utilization. At King's Landing, the acid gas injection and sour conversion project continues to advance with drilling operations well underway and phase one remains on schedule for in service by year end. In Delaware South, Diamond Volt, our 40 megawatt behind-the-meter power generation project at Diamond Cryo, continues construction progress within service anticipated in the second quarter of 2027. Now, before I hand the call over to Trevor, I want to underscore how confident we are in Kinetic's position and long-term trajectory. The strategic investments we have made across our platform are delivering exactly as intended. Strengthening our financial performance, expanding our commercial opportunity set, and enhancing the value we provide to customers. We're seeing the benefits of our integrated model come through in a meaningful way. Our assets are performing well. Our team is executing with discipline. and the momentum across the business continues to accelerate. As customer activity builds and the need for reliable connected infrastructure becomes even more critical, Kinetic is uniquely positioned to deliver. We exit the second quarter with stronger earnings power, greater visibility and a clear line of sight to continued value creation in 2027 and beyond. And with that, I will turn the call over to Trevor.