{"url_path":"/sec/kntk/10-q/2026/item-3","section_key":"item-3","section_title":"Item 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-08","source_url":"https://www.sec.gov/Archives/edgar/data/1692787/0001692787-26-000092-index.html","accession_number":"0001692787-26-000092","cik":"0001692787","ticker":"KNTK","issuer_name":"Kinetik Holdings Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1692787/0001692787-26-000092-index.html","primary_entity_key":"0001692787","primary_entity_name":"Kinetik Holdings Inc."},"word_count":398,"has_tables":true,"body_markdown":"ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK\n\nQuantitative and Qualitative Disclosure About Market Risk\n\nThe Company is exposed to various market risks, including the effects of adverse changes in commodity prices and credit risk as described below. The Company continually monitors its market risk exposure, including the impact of regional and international political instability, foreign and domestic trade policies under the Trump Administration and monetary policy addressing the interest rate and inflation trend, which continued to have significant impact on volatility and uncertainties in the financial markets during 2025.\n\nCommodity Price Risk\n\nThe results of the Company’s operations may be affected by the market prices of oil, natural gas and NGLs. A portion of the Company’s revenue is directly tied to local crude, natural gas, NGLs and condensate prices in the Permian Basin and the U.S. Gulf Coast. Fluctuations in commodity prices also impact operating cost elements both directly and indirectly. For example, commodity prices directly impact costs such as power and fuel, which are expenses that increase or decrease in line with changes in commodity prices. Commodity prices also affect industry activity and demand, thus indirectly impacting the cost of items such as labor and equipment rentals. Management regularly reviews the Company’s potential exposure to commodity price risk and uses financial or physical arrangements to mitigate potential volatility. Refer to [Note 12—Derivatives and Hedging Activities](#ib1bcf676fb6140c9aa9d8fa1b1acfba9_73) in the Notes to Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for additional discussion regarding our hedging strategies and objectives.\n\nInterest Rate Risk\n\nAs of March 31, 2026, the Company had $1.81 billion of floating rate debt outstanding. A hypothetical 1.0% change in interest rates would result in a maximum potential change to annual interest expense of approximately $18.1 million for the Revolving Credit Agreement, the Term Loan Credit Agreement and the Amended A/R Facility. Refer to [Note 12—Derivatives and Hedging Activities](#ib1bcf676fb6140c9aa9d8fa1b1acfba9_73) in the Notes to Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for additional discussion regarding our related hedging strategies and objectives.\n\nCredit Risk\n\nThere have been no material changes in the Company’s credit risk exposure that would affect the quantitative or qualitative disclosures presented as of December 31, 2025, in Part II, Item 7A in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Commission on February 26, 2026.\n\n35\n\n[Table of Contents](#ib1bcf676fb6140c9aa9d8fa1b1acfba9_7)"}