Kinetik Holdings Inc. (NYSE: KNTK) announced it reached final investment decision on Kings Landing II, a 300 million cubic feet per day natural gas processing plant at its existing Kings Landing complex in New Mexico.

The project represents a 50% increase from the originally planned 200 million cubic feet per day capacity expansion. Kinetik estimates the facility will cost approximately $260 million and expects completion in the second half of 2028.

"Our decision to proceed with KLII at this expanded scale is a direct response to this activity," said Jamie Welch, President and CEO of Kinetik, referring to development activity in the Northern Delaware Basin.

Upon completion, Kinetik's system-wide processing capacity will exceed 2.7 billion cubic feet per day, with more than 700 million cubic feet per day of sour gas processing capacity in northern Eddy and Lea Counties.

The company said the construction and design of Kings Landing II preserves the ability to add a third 200 million cubic feet per day processing plant at the Kings Landing complex.

With the increased processing capacity, Kinetik expects to reach the top end of its 2026 capital expenditures guidance range of $450 million to $510 million.

Kinetik is a midstream company operating in the Delaware Basin that provides gathering, transportation, compression, processing and treating services for natural gas, natural gas liquids, crude oil and water producers. The company is headquartered in Houston and Midland, Texas.