Kinetik Holdings Inc.
For the period ended Mar 31, 2026. Filed May 8, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 8, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
EQUITY METHOD INVESTMENTS
- EQUITY METHOD INVESTMENTS
As of March 31, 2026, the Company owned investments in the following long-haul pipeline entities in the Permian Basin. These investments were accounted for using the equity method of accounting. For each EMI pipeline entity, the Company has the ability to exercise significant influence based on certain governance provisions and its participation in the significant activities and decisions that impact the management and economic performance of the EMI pipeline. The table below presents the ownership percentages and investment balances held by the Company for each entity:
| March 31, · December 31, | |||
|---|---|---|---|
| Ownership | 2026 | 2025 | |
| (In thousands) | |||
| PHP | 55.5% | $1,579,875 | $1,591,384 |
| Breviloba | 33.0% | 411,729 | 417,341 |
| $1,991,604 | $2,008,725 | ||
The unamortized, net basis differences included in the EMI pipeline balances were $191.7 million and $193.6 million as of March 31, 2026 and December 31, 2025, respectively. These amounts represent differences in the Company’s contributions to date and the Company’s underlying equity in the separate net assets within the financial statements of the respective entities. Unamortized basis differences are amortized on a straight-line basis into equity income of unconsolidated affiliates over the useful lives of the underlying pipeline assets. In addition, there was capitalized interest of $22.8 million and $23.0 million as of March 31, 2026 and December 31, 2025, respectively. Capitalized interest is amortized on a straight-line basis into equity income of unconsolidated affiliates.
The following table presents the activity in the Company’s EMIs for the three months ended March 31, 2026:
| Permian Highway Pipeline LLC | Breviloba, LLC | Total | |
|---|---|---|---|
| (In thousands) | |||
| Balance at December 31, 2025 | $1,591,384 | $417,341 | $2,008,725 |
| Distributions(1) | (56,619) | (11,690) | (68,309) |
| Equity income, net(2) | 45,110 | 6,078 | 51,188 |
| Balance at March 31, 2026 | $1,579,875 | $411,729 | $1,991,604 |
(1)Distributions consisted of a return on investment of $68.3 million, which was included in cash flows from operating activities.
(2)For the three months ended March 31, 2026, equity income was net of amortization of basis differences and capitalized interest, which represents undistributed earnings, of $2.0 million from PHP and $0.2 million from Breviloba, LLC.
Summarized Financial Information
The following table represents selected data for the Company’s ongoing EMI pipelines (on a 100 percent basis) for the three months ended March 31, 2026 and 2025.
| Three Months Ended March 31, | ||||
|---|---|---|---|---|
| 2026 | 2025 | |||
| Permian Highway Pipeline LLC | Breviloba, LLC | Permian Highway Pipeline LLC | Breviloba, LLC | |
| (In thousands) | ||||
| Revenues | $128,686 | $39,769 | $128,306 | $59,492 |
| Operating income | 84,884 | 19,969 | 82,572 | 31,976 |
| Net income | 84,741 | 19,856 | 82,649 | 31,991 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.