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Investor Presentaiton

Non-GAAP Measures Reconciliation (1) (2) KINETIK Three Months Ended December 31, Twelve Months Ended 2023 Net Income Including Non-controlling Interests to Adjusted EBITDA Net income including non-controlling interests (GAAP) Add back: Interest expense Income tax (benefit) expense 267,354 December 31, 2022 2023 2022(1) (In thousands) 48,462 $ 386,452 $ 250,721 75,411 (234,938) 56,667 372 205,854 (232,908) 149,252 2,616 Depreciation and amortization 72,715 67,736 280,986 260,345 Amortization of contract costs 1,655 463 6,620 1,807 Proportionate EBITDA from unconsolidated affiliates 81,139 78,388 306,072 268,826 Share-based compensation 12,642 11,814 55,983 42,780 Loss on disposal of assets 4,236 9 19,402 12,611 Loss on debt extinguishment 1,876 1,876 27,975 30 2,197 1,015 12,208 648 6,412 4,356 5,385 11,901 16,355 Integration costs Acquisition transaction costs Other one-time cost or amortization Deduct: Interest and other income Warrant valuation adjustment Gain on redemption of mandatorily redeemable Preferred Units Unrealized gain on derivatives Gain on embedded derivative Equity income from unconsolidated affiliates Adjusted EBITDA (2) (non-GAAP) 363 677 14 133 88 133 9,580 4,907 4,291 89,050 53,187 60,250 200,015 180,956 $ 228,005 $ 211,110 $ 838,830 $ 772,189 The results of the legacy ALTM business are not included in the Company's consolidated financials prior to February 22, 2022. Adjusted EBITDA is defined as net income including non-controlling interests adjusted for interest, taxes, depreciation and amortization, impairment charges, asset write-offs, the proportionate EBITDA from unconsolidated affiliates, equity in earnings from unconsolidated affiliates, share-based compensation expense, non-cash increases and decreases related to trading and hedging agreements, extraordinary losses and unusual or non-recurring charges. Adjusted EBITDA provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted EBITDA should not be considered as an alternative to the GAAP measure of net income including non-controlling interests or any other measure of financial performance presented in accordance with GAAP. 24 24
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