Financial PerformanceKNTK's initial FY25 guidance was lower than expected, and capex guidance was higher than anticipated.
Market ChallengesThere is concern about medium to longer term growth given weaker crude and NGL prices due to dual headwinds of OPEC raising volumes and impact of tariffs that make NGL export economics very challenging.
Valuation ConcernsKNTK is trading at a higher valuation compared to other Permian levered midstream companies, which suggests there are cheaper ways to get exposure to the Permian volume growth story.