Kinetik Holdings Inc.

7. DEBT AND FINANCING COSTS

Accounts Receivable Securitization Facility

On March 31, 2026, the Partnership executed Amendment No. 2 to its accounts receivable securitization facility, originally dated April 2, 2024 (the “A/R Facility” and, as amended, the “Amended A/R Facility”), with PNC Bank, National Association (“PNC Bank”). Pursuant to this amendment, the facility limit was reduced to $225.0 million, and the scheduled termination date was extended to March 30, 2027, with a final maturity date of the earlier of (a)60 days following the scheduled termination date, and (b) the termination date unless such termination date occurs solely as a result of the scheduled termination date’s occurrence. Furthermore, Amendment No. 2 introduced an option permitting Kinetik Receivables LLC to request an increase in commitments of up to $50.0 million in aggregate, subject to PNC Bank’s approval.

Under the Amended A/R Facility, the Company is subject to pay a yield to the purchasers equal to the highest of (i) the overnight bank funding rate, plus 0.50%, (ii) the prime rate, and (iii) daily simple SOFR, plus 1.00%, and a drawn fee of 0.85%. The Company also pays a fee of 0.40% on the undrawn committed amount of the Amended A/R Facility. Yield and fees payable by the Company under the Amended A/R Facility are due monthly. As of September 30, 2026, the full amount available under the Amended A/R Facility had been drawn and eligible accounts receivable of $225.0 million were pledged to the Amended A/R Facility as collateral.

Revolving Credit Agreement

On May 30, 2025, the Partnership entered into a new revolving credit agreement (the “Revolving Credit Agreement”) among PNC Bank, National Association, as administrative agent (“PNC Bank”), and the banks and other financial institutions party thereto, as lenders. The Revolving Credit Agreement provides for a $1.60 billion senior unsecured revolving credit facility, which includes a $200.0 million sublimit for the issuance of letters of credit, and a $300.0 million sublimit for swingline loans, and matures on May 30, 2030. The obligations under the Revolving Credit Agreement are guaranteed by the Company. The aggregate fees and expenses paid directly to lenders and third parties in connection with the Revolving Credit Agreement were capitalized as debt issuance costs, included in “Prepaid and other current assets” and “Deferred charges and other assets” on the Condensed Consolidated Balance Sheets, and were amortized over the term of the revolving credit facility to interest expense using the straight-line method. As of September 30, 2026, there were unamortized debt issuance costs of $7.0 million. As of September 30, 2026, we had an outstanding borrowing of $525.0 million and letters of credit obligations of $12.6 million, and remaining borrowing capacity of $1.06 billion.

The following table summarizes the Company’s debt obligations as of September 30, 2026 and December 31, 2025:

(1)The effective interest rate was 4.77% and 4.65% as of September 30, 2026 and December 31, 2025, respectively.

(2)The effective interest rate of the Term Loan Credit Agreement was 5.63% and 5.44% as of September 30, 2026 and December 31, 2025, respectively.

(3)The weighted average effective interest rate of the Revolving Credit Agreement was 5.63% and 5.44% as of September 30, 2026 and December 31, 2025, respectively.

(4)Fees paid directly to third parties were capitalized as debt issuance costs, included in the Condensed Consolidated Balance Sheets as direct deductions from respective loans and are amortized using the effective interest method. As of September 30, 2026, unamortized debt issuance costs consisted of $1.7 million to the unsecured term loan, $7.1 million to the 2028 Notes and $11.3 million to the 2030 Notes.

(5)The original debt premium, net of debt discount was included in the Condensed Consolidated Balance Sheets as an adjustment to the respective loans and amortized over the life of the loans using the effective interest method. As of September 30, 2026, there was an unamortized debt discount of $2.0 million to the unsecured term loan and debt premium, net, of $1.1 million to the 2028 Notes.

The table below presents the components of the Company’s financing costs, net of capitalized interest:

Compliance with our Covenants

As of September 30, 2026, the Partnership was in compliance with all customary and financial covenants. Please refer to information regarding our customary and financial covenants included in Note 8—Debt and Financing Costs of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026.

Fair Value of Financial Instruments

The fair value of the Company and its subsidiaries’ consolidated debt as of September 30, 2026 and December 31, 2025 was $3.95 billion and $3.88 billion, respectively. On September 30, 2026, the senior unsecured notes’ fair value was based on Level 1 inputs, the Term Loan Credit Agreement’s and Revolving Credit Agreement’s fair values were based on Level 3 inputs and the Amended A/R Facility’s fair value approximates its carrying value due to its short-term nature.