Kinetik (KNTK)
NYSE:KNTK
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Kinetik
(NYSE:KNTK)
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Rating:64Neutral
Price Target:
$50.00
â–²(5.91% Upside)
Action:ReiteratedDate:02/27/26
The score is driven primarily by solid operating performance and cash generation, partially offset by elevated balance-sheet risk (high debt and negative equity). Technicals are supportive with price above key moving averages and positive momentum, while valuation is pressured by a very high P/E despite the attractive dividend. The latest earnings call was mixed due to lowered EBITDA guidance and macro/volume headwinds, balanced by progress on key projects and strategic agreements.
Positive Factors
Strong cash generation
Kinetik’s operating cash flow has been consistently positive and free cash flow returned to positive from 2021 through 2025, with 2025 FCF matching net income. Durable cash generation supports sustaining capex, dividends, and deleveraging over the next 2–6 months.
Negative Factors
High leverage and negative equity
Debt has increased materially while shareholders’ equity has been negative in recent years, leaving a weak equity cushion. Elevated leverage raises refinancing, covenant and liquidity risk, reducing financial flexibility and increasing vulnerability to sustained commodity weakness over the next several months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Kinetik’s operating cash flow has been consistently positive and free cash flow returned to positive from 2021 through 2025, with 2025 FCF matching net income. Durable cash generation supports sustaining capex, dividends, and deleveraging over the next 2–6 months.
Read all positive factors
Kinetik (KNTK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.66B
Dividend Yield8.77%
Average Volume (3M)1.55M
Price to Earnings (P/E)12.5
Beta (1Y)0.99
Revenue Growth15.00%
EPS Growth-84.96%
CountryUS
Employees460
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)2.16
Shares Outstanding64,590,740
10 Day Avg. Volume1,047,759
30 Day Avg. Volume1,550,291
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)-3.95
Price to Sales (P/S)1.27
P/FCF Ratio30.00
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue3.92
Enterprise Value/Gross Profit12.40
Enterprise Value/Ebitda5.81
Forecast
1Y Price Target
$49.42Price Target Upside4.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)1.09
Revenue Forecast (FY)$1.95B
Kinetik Business Overview & Revenue Model
Company Description
Kinetik Holdings Inc. operates as a midstream company in the Texas Delaware Basin. It provides gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil, and wa...
How the Company Makes Money
Kinetik generates revenue through multiple streams, primarily by selling its consumer-facing products such as fitness trackers and associated applications. The company also earns money through subscription services that provide users with access t...
Kinetik Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of strategic achievements, such as the successful initiation of Kings Landing and new partnerships, alongside significant challenges posed by delayed projects, commodity price volatility, and production curtailments. The call acknowledged past missteps and emphasized a commitment to improved forecasting and cost control.Positive Updates
Kings Landing Project Success
Kings Landing reached full commercial service in September, adding over 100 million cubic feet per day of processing capacity in New Mexico, in line with original expectations.
Negative Updates
Delayed King's Landing Start-Up
King's Landing's full commercial in-service was slower than anticipated, reducing full-year earnings by approximately $20 million.
Read all updates
Q3-2025 Updates
Positive
Negative
Kings Landing Project Success
Kings Landing reached full commercial service in September, adding over 100 million cubic feet per day of processing capacity in New Mexico, in line with original expectations.
Read all positive updates
Company Guidance
During Kinetik's third quarter 2025 earnings call, the company provided updated guidance and outlined several strategic initiatives. Kinetik revised its full-year adjusted EBITDA guidance to a range of $965 million to $1.005 billion, citing factors such as delayed start-up of Kings Landing, sustained commodity price volatility, and producer curtailments. The company highlighted that Kings Landing, now fully operational, is flowing over 100 million cubic feet per day, aligning with expectations. Kinetik also discussed its acid gas injection project at Kings Landing, expected to be operational by late 2026, and its strategic move to secure a 5-year LNG pricing agreement with INEOS for 2027, based on the European TTF index. Additionally, Kinetik secured additional firm transport capacity to the U.S. Gulf Coast starting in 2028 to enhance market access. The company emphasized its commitment to disciplined execution, forecasting improvements, and advancing strategic projects such as the ECCC pipeline and collaborations in power generation, positioning itself for long-term growth in the Permian Basin.Kinetik Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
28
Negative
Cash Flow
79
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.76B | 1.48B | 1.26B | 1.21B | 662.04M |
| Gross Profit | 324.39M | 538.11M | 459.70M | 411.63M | 184.87M |
| EBITDA | 1.19B | 801.26M | 634.19M | 653.37M | 350.90M |
| Net Income | 178.26M | 244.23M | 386.45M | 135.52M | 1.48M |
Balance Sheet | |||||
| Total Assets | 7.27B | 6.81B | 6.50B | 5.92B | 3.55B |
| Cash, Cash Equivalents and Short-Term Investments | 3.95M | 3.61M | 4.51M | 6.39M | 18.73M |
| Total Debt | 3.87B | 3.53B | 3.60B | 3.40B | 2.37B |
| Total Liabilities | 4.34B | 3.84B | 3.87B | 3.65B | 2.55B |
| Stockholders Equity | -565.38M | -2.98B | -530.82M | -839.77M | 10.00K |
Cash Flow | |||||
| Free Cash Flow | 74.45M | 361.47M | 254.93M | 391.43M | 152.86M |
| Operating Cash Flow | 604.12M | 637.35M | 584.48M | 613.01M | 235.57M |
| Investing Cash Flow | -199.09M | -176.89M | -686.32M | -286.13M | -99.62M |
| Financing Cash Flow | -404.68M | -461.36M | 99.96M | -339.21M | -136.81M |
Kinetik Technical Analysis
Positive
47.21
Price Trends
42.69
Positive
38.65
Positive
39.19
Positive
Market Momentum
1.03
Positive
63.49
Neutral
77.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNTK, the sentiment is Positive. The current price of 47.21 is above the 20-day moving average (MA) of 45.88, above the 50-day MA of 42.69, and above the 200-day MA of 39.19, indicating a bullish trend. The MACD of 1.03 indicates Positive momentum. The RSI at 63.49 is Neutral, neither overbought nor oversold. The STOCH value of 77.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KNTK.
Kinetik Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $13.85B | 27.57 | 9.41% | 2.70% | 20.39% | -3.85% | |
74 Outperform | $11.16B | 20.58 | 20.12% | 4.98% | 8.70% | 21.42% | |
73 Outperform | $8.26B | 12.03 | 59.38% | 8.45% | 10.78% | 19.10% | |
69 Neutral | $2.88B | 13.53 | 461.30% | 9.78% | -1.78% | 9.32% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $7.66B | 12.53 | -15.64% | 8.77% | 15.00% | -84.96% | |
58 Neutral | $2.20B | 24.04 | -162.28% | 4.14% | -36.47% | -75.37% |
* Energy Sector Average
KNTK
Kinetik
47.21
-0.51
-1.07%
GEL
Genesis Energy
18.00
2.90
19.19%
DKL
Delek Logistics
53.75
14.09
35.53%
AM
Antero Midstream
23.60
6.58
38.69%
HESM
Hess Midstream Partners
39.75
0.67
1.72%
DTM
DT Midstream
136.15
41.91
44.47%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.