v3.26.1
DEBT AND FINANCING COSTS
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
DEBT AND FINANCING COSTS 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. In addition, Amendment No. 2 introduced an option permitting Kinetik Receivables, LLC (“Kinetik Receivables”) to request an increase in commitments of up to $50.0 million in aggregate, subject to PNC Bank’s approval. Furthermore, Amendment No. 2 removed all sustainability-linked pricing provisions from the A/R Facility, including the sustainability rate adjustment, sustainability fee adjustment and related reporting obligations that were previously applicable to the yield rate and fees under the facility.
For the three months ended March 31, 2026, the aggregate fees and expenses paid directly to third parties for the amendment were immaterial.
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 March 31, 2026, eligible accounts receivable of $187.1 million were pledged to the Amended A/R Facility as collateral and $37.9 million was available to be invested by the purchasers.
Term Loan Credit Agreement

On May 30, 2025, the Partnership entered into a term loan credit agreement (the “Term Loan Credit Agreement”) among Toronto Dominion (Texas) LLC, as administrative agent and the banks and other financial institutions party thereto, as lenders. The Term Loan Credit Agreement provides for a senior unsecured credit facility of $1.15 billion and matures on May 30, 2028. The obligations under the Term Loan Credit Agreement are guaranteed by the Company.
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 straight-line method. As of March 31, 2026, there were unamortized debt issuance costs of $8.0 million. As of March 31, 2026, we had an outstanding borrowing of $468.0 million and remaining borrowing capacity of $1.12 billion.
December 2028 Sustainability-Linked Senior Notes
On March 14, 2025, the Company completed an additional private placement of $250.0 million aggregate principal amount of 6.625% Sustainability-Linked Senior Notes due 2028 (the “New 2028 Notes”) at 101.25% of par. The New 2028 Notes were issued as additional notes under the Indenture dated as of December 6, 2023 (the “Existing Notes”). The New 2028 Notes and the Existing Notes (together, as “2028 Notes”), are treated as a single series of securities under the indenture and vote together as a single class. Interest on the 2028 Notes is payable semi-annually in arrears on June 15 and December 15 of each year. The 2028 Notes will mature on December 15, 2028.
June 2030 Sustainability-Linked Senior Notes
On June 8, 2022, the Partnership completed a private placement of $1.00 billion aggregate principal amount of its 5.875% Senior Notes due 2030 (the “2030 Notes”), which are fully and unconditionally guaranteed by the Company. The 2030 Notes
were issued at 99.59% of their face amount and will mature on June 15, 2030. Interest is payable semi-annually in arrears on June 15 and December 15 of each year.
The following table summarizes the Company’s debt obligations as of March 31, 2026 and December 31, 2025:
March 31,December 31,
20262025
(In thousands)
A/R Facility(1)
$187,100 $165,200 
Total current debt obligations
$187,100 $165,200 
Unsecured term loan(2)
$1,150,000 $1,150,000 
5.875% senior unsecured notes (“2030 Notes”)
1,000,000 1,000,000 
6.625% senior unsecured notes (“2028 Notes”)
1,050,000 1,050,000 
Revolving line of credit(3)
468,000 453,000 
Total long-term debt3,668,000 3,653,000 
Unamortized debt issuance costs, net(4)
(22,970)(24,374)
Unamortized debt premiums and discounts, net(5)
(902)(906)
Total long-term debt, net$3,644,128 $3,627,720 
(1)The effective interest rate was 4.61% and 4.65% as of March 31, 2026 and December 31, 2025, respectively.
(2)The effective interest rate of the Term Loan Credit Agreement was 5.39% and 5.44% as of March 31, 2026 and December 31, 2025, respectively.
(3)The weighted average effective interest rate of the Revolving Credit Agreement was 5.39% and 5.44% as of March 31, 2026 and December 31, 2025, respectively.
(4)Fees paid directly to third parties were capitalized as debt issuance cost, included in the Condensed Consolidated Balance Sheets as direct deductions to respective loans, are amortized using effective interest method. As of March 31, 2026, unamortized debt issuance costs consisted of $1.9 million to the unsecured term loan, $8.4 million to the 2028 Notes and $12.6 million to the 2030 Notes.
(5)The original debt premium, net of debt discount were included in the Condensed Consolidated Balance Sheets as adjustments to respective loans and amortized over the life of the loans using the effective interest method. As of March 31, 2026, there were unamortized debt discount of $2.2 million to the unsecured term loan and debt premium, net, of $1.3 million to the 2028 Notes.
The table below presents the components of the Company’s financing costs, net of capitalized interest:
Three Months Ended March 31,
20262025
(In thousands)
Capitalized interest$(1,774)$(3,304)
Debt issuance costs1,963 1,972 
Interest expense53,231 57,046 
Total financing costs, net of capitalized interest$53,420 $55,714 
Compliance with our Covenants
The Term Loan Credit Agreement and the Revolving Credit Agreement contain customary covenants and restrictive provisions which may, among other things, limit the Partnership’s ability to create liens, incur additional indebtedness and make restricted payments and the Partnership’s ability to liquidate, dissolve, consolidate with or merge into or with any other person. The 2030 Notes and the 2028 Notes also contain covenants and restrictive provisions, which may, among other things, limit the Partnership’s and its subsidiaries’ ability to create liens to secure indebtedness.
The Amended A/R Facility contains covenants and restrictive provisions with respect to the Partnership and Kinetik Receivables that are customary for accounts receivable securitization facilities.
As of March 31, 2026, the Partnership was in compliance with all customary and financial covenants.
Letters of Credit
Our Revolving Credit Agreement maturing on May 30, 2030 includes a $200.0 million sublimit for the issuance of letters of credit. Our letters of credit obligations totaled $12.6 million as of March 31, 2026 and December 31, 2025. As of March 31, 2026, the Revolving Credit Agreement has a borrowing capacity of $1.12 billion available.
Fair Value of Financial Instruments
The fair value of the Company and its subsidiaries’ consolidated debt as of March 31, 2026 and December 31, 2025 was $3.88 billion. On March 31, 2026, the senior unsecured notes’ fair value was based on Level 1 inputs, the Term Loan Credit Agreement and the Revolving Credit Agreement’s fair value was based on Level 3 inputs and the Amended A/R Facility’s fair value approximates its carrying value due to its short-term nature.