Kinetik (KNTK) AI Stock Analysis

• Market Cap: $6.93B
• Dividend Yield: 7.12%
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): 46.7
• Beta (1Y): 0.85
• Revenue Growth: 23.42%
• EPS Growth: -61.22%
• Country: US
• Employees: 460
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.05
• Shares Outstanding: 60,922,480
• 10 Day Avg. Volume: 1,322,830
• 30 Day Avg. Volume: 1,210,215
• PEG Ratio: <0.01
• Price to Book (P/B): -1.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.50
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 5.88
• Enterprise Value/Ebitda: 1.02
• 1Y Price Target: $53.78
• Price Target Upside: 22.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 62 Neutral
• Price Target: $46.00 ▲(4.90%Upside)

Kinetik's overall score is driven by strong financial performance and positive earnings call highlights, including solid EBITDA growth and shareholder returns. However, significant balance sheet risks and high valuation metrics dampen the overall attractiveness. The neutral technical indicators further suggest a cautious outlook.

Positive Factors

Acquisition Impact

The acquisition of Durango Midstream has been well-received and contributes to KNTK's improved outlook.

Growth Outlook

KNTK's internal target to reach ~$2bn/yr of run-rate adj EBITDA by 2030e demonstrates a strong growth outlook.

Market Position

KNTK is the 3rd largest gas processor in the Delaware Basin and very well positioned to benefit from growing demand for natural gas driven by LNG exports and demand for natural gas based power generation.

Negative Factors

Earnings Miss

Negative Waha prices in early November were a major driver of KNTK's 4Q24 earnings miss.

Price Pressures

There 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 Concerns

KNTK 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.

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 water. The company is headquartered in Midland, Texas.

How the Company Makes Money

Kinetik makes money through a variety of revenue streams centered around its midstream energy services. The company's primary sources of income are fees and contracts associated with the gathering, processing, and transportation of natural gas and crude oil. These services are typically secured through long-term agreements with energy producers, ensuring a steady flow of revenue. Additionally, Kinetik may engage in storage services, earning fees for the temporary holding of energy products. The company also benefits from strategic partnerships and joint ventures that enhance its operational capabilities and market reach, contributing to its overall earnings.

Kinetik Financial Statement Overview

Summary

Kinetik shows strong revenue growth and improved profitability, with significant increases in net profit margins. However, the balance sheet is concerning due to negative stockholders' equity and high leverage. Cash flow generation is strong, providing some financial stability.

Income Statement

Kinetik has shown a strong revenue growth trajectory, with a substantial increase from $410 million in 2020 to $1.58 billion in TTM 2025. Gross profit margins have been steady, peaking at 34.8% in TTM 2025. Net profit margins have improved significantly, reaching 14.4% in TTM 2025, indicating enhanced profitability. However, the EBIT margin remains modest at 10.9%, suggesting potential operational efficiencies could be explored.

Balance Sheet

The company's balance sheet shows a negative stockholders' equity in recent years, ending at -$2.55 billion in TTM 2025, which is concerning. The debt-to-equity ratio is not calculable due to negative equity, indicating high leverage and financial risk. The equity ratio is negative, highlighting the need for equity strengthening. Despite these challenges, the company has managed to maintain a relatively stable asset base.

Cash Flow

Kinetik's cash flow generation shows resilience, with a healthy operating cash flow and consistent free cash flow. The free cash flow to net income ratio is robust at 1.59 in TTM 2025, reflecting strong cash conversion. However, the free cash flow growth rate has been moderate, and there's a need to sustain cash flow improvements to support financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.58B	1.48B	1.26B	1.21B	662.04M	410.18M
Gross Profit	551.24M	538.11M	459.70M	411.63M	184.87M	121.36M
EBITDA	810.94M	801.26M	634.19M	653.37M	350.90M	-807.46M
Net Income	228.09M	244.23M	386.45M	135.52M	1.48M	-1.15B
Balance Sheet
Total Assets	7.03B	6.81B	6.50B	5.92B	3.55B	3.54B
Cash, Cash Equivalents and Short-Term Investments	8.85M	3.61M	4.51M	6.39M	18.73M	19.59M
Total Debt	184.78M	3.53B	3.60B	3.40B	2.37B	2.39B
Total Liabilities	4.13B	3.84B	3.87B	3.65B	2.55B	2.50B
Stockholders Equity	-2.55B	-2.98B	-530.82M	-839.77M	10.00K	937.04M
Cash Flow
Free Cash Flow	363.32M	361.47M	254.93M	391.43M	152.86M	-96.96M
Operating Cash Flow	660.47M	637.35M	584.48M	613.01M	235.57M	102.10M
Investing Cash Flow	-375.05M	-176.89M	-686.32M	-286.13M	-99.62M	-505.59M
Financing Cash Flow	-286.34M	-461.36M	99.96M	-339.21M	-136.81M	372.77M

Kinetik Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.85
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 43.85 is above the 20-day moving average (MA) of 43.44, above the 50-day MA of 43.59, and below the 200-day MA of 50.52, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 50.74 is Neutral, neither overbought nor oversold. The STOCH value of 58.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KNTK.

Kinetik Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AM	78 Outperform	$8.68B	21.07	19.71%	4.97%	5.03%	7.15%
HESM	77 Outperform	$8.03B	15.02	49.74%	7.43%	8.77%	15.22%
DTM	74 Outperform	$10.76B	28.97	8.29%	3.10%	10.83%	-10.47%
DKL	72 Outperform	$2.34B	14.64	542.39%	10.15%	-8.79%	7.75%
PAA	71 Outperform	$13.00B	19.89	9.43%	8.22%	3.40%	-20.48%
KNTK	62 Neutral	$6.93B	46.71	-8.21%	7.12%	23.42%	-61.22%
Sector *	52 Neutral	C$2.91B	-1.09	-3.26%	6.12%	5.32%	-43.41%

Kinetik Corporate Events

Kinetik’s Chief Strategy Officer Retires, Becomes Consultant

Anne Psencik, the Chief Strategy Officer of Kinetik Holdings Inc., retired from her position on June 30, 2025. She has no disagreements with the company’s operations, policies, or practices. Following her retirement, a separation agreement was made, including a lump sum payment and continuation of her equity awards. Additionally, she entered into a consulting agreement with Kinetik, serving as a consultant until July 1, 2028, with an annual fee and potential discretionary payments. These arrangements ensure her continued involvement with the company.

The most recent analyst rating on (KNTK) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Kinetik stock, see the KNTK Stock Forecast page.

Kinetik Secures $2.75 Billion Credit Agreements

On May 30, 2025, Kinetik Holdings LP, a subsidiary of Kinetik Holdings Inc., entered into a $1.6 billion revolving credit agreement and a $1.15 billion term loan credit agreement, both unsecured, with various financial institutions. These agreements replace previous credit facilities and include covenants and provisions that could impact Kinetik LP’s financial operations and obligations, potentially affecting its stakeholders.

The most recent analyst rating on (KNTK) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Kinetik stock, see the KNTK Stock Forecast page.

Kinetik Stockholders Approve Key Proposals at Annual Meeting

At the Annual Meeting on May 19, 2025, Kinetik Holding Inc. stockholders voted on three key proposals. The election of ten directors for a one-year term was confirmed, executive compensation was approved on an advisory basis, and KPMG LLP was ratified as the independent auditor for the fiscal year ending December 31, 2025.

The most recent analyst rating on (KNTK) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Kinetik stock, see the KNTK Stock Forecast page.

Kinetik Announces Retirement of Chief Strategy Officer

On April 30, 2025, Kinetik Holdings Inc. announced the retirement of Anne Psencik, Chief Strategy Officer, effective June 30, 2025. Ms. Psencik, who has been with the company since 2019, will continue to serve as a consultant post-retirement. Her tenure at Kinetik has been marked by significant contributions to the company’s growth strategy and risk management, with over 35 years of experience in the oil and gas industry.