Kinetik (KNTK) AI Stock Analysis

• Market Cap: $6.27B
• Dividend Yield: 8.05%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 53.5
• Beta (1Y): 0.86
• Revenue Growth: 16.09%
• EPS Growth: -71.69%
• Country: US
• Employees: 460
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.33
• Shares Outstanding: 61,474,514
• 10 Day Avg. Volume: 1,251,089
• 30 Day Avg. Volume: 1,299,908
• PEG Ratio: -0.16
• Price to Book (P/B): -1.13
• Price to Sales (P/S): 2.27
• P/FCF Ratio: 9.30
• Enterprise Value/Market Cap: 1.77
• Enterprise Value/Revenue: 6.73
• Enterprise Value/Gross Profit: 21.31
• Enterprise Value/Ebitda: 15.08
• 1Y Price Target: $49.78
• Price Target Upside: 25.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 58 Neutral
• Price Target: $44.00 ▲(11.22% Upside)

Kinetik's overall score is driven by strong cash flow and operational efficiency but is hindered by significant balance sheet risks and bearish technical indicators. The earnings call provides a mixed outlook with both growth prospects and challenges. The high dividend yield offers some valuation appeal despite a high P/E ratio.

Positive Factors

Revenue Growth

Projected EBITDA growth indicates strong revenue expansion potential, driven by strategic projects like Kings Landing, enhancing long-term market position.

Cash Flow Performance

Robust cash flow growth supports liquidity and reinvestment capabilities, ensuring financial stability and the ability to fund future innovations.

Operational Efficiency

High EBITDA margin reflects effective cost management and operational efficiency, providing a competitive edge in maintaining profitability.

Negative Factors

Balance Sheet Risks

High leverage and negative equity indicate potential solvency risks, necessitating financial restructuring to ensure long-term stability.

Profit Margin Decline

Declining profit margins highlight cost pressures, impacting profitability and necessitating improved cost management strategies.

Increased Operating Costs

Rising operating costs due to inflationary pressures could erode margins, challenging the company's ability to sustain profitability.

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 generates revenue through multiple streams, primarily by selling its proprietary kinetic energy recovery systems and EV charging solutions to commercial and municipal clients. The company also earns income from service contracts, maintenance agreements, and software subscriptions related to its smart grid technology. Additionally, strategic partnerships with automotive manufacturers and energy providers enhance Kinetik's market reach and create opportunities for collaborative projects, boosting its revenue potential. Government incentives and grants for renewable energy initiatives further support Kinetik's financial growth, allowing the company to invest in research and development for future innovations.

Kinetik Financial Statement Overview

Summary

Kinetik demonstrates strong cash flow performance and operational efficiency, with a robust EBITDA margin. However, significant challenges exist with a high debt-to-equity ratio and negative stockholders' equity, indicating financial instability. Declining profit margins further highlight cost management issues.

Income Statement

Kinetik's income statement shows a moderate performance with a consistent revenue growth rate of 4.25% in the TTM period. However, the gross profit margin has decreased from previous years, indicating potential cost pressures. The net profit margin has significantly declined to 3.70% in the TTM, suggesting challenges in maintaining profitability. Despite these issues, the company maintains a strong EBITDA margin of 44.59%, highlighting operational efficiency.

Balance Sheet

The balance sheet reveals significant financial instability, with a negative stockholders' equity and a high debt-to-equity ratio of -1.00 in the TTM period. This indicates high leverage and potential solvency risks. The return on equity is negative, reflecting the company's struggle to generate profits from its equity base. These factors suggest a need for financial restructuring to improve balance sheet health.

Cash Flow

Kinetik's cash flow statement shows strong performance with a 34.39% growth in free cash flow in the TTM period. The operating cash flow to net income ratio of 3.51 indicates robust cash generation relative to net income. The free cash flow to net income ratio of 0.74 suggests effective conversion of earnings into cash, supporting liquidity and potential for reinvestment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.65B	1.48B	1.26B	1.21B	662.04M	410.18M
Gross Profit	521.59M	538.11M	459.70M	411.63M	184.87M	121.36M
EBITDA	736.74M	801.26M	634.19M	653.37M	350.90M	-807.46M
Net Income	61.05M	244.23M	386.45M	135.52M	1.48M	-1.15B
Balance Sheet
Total Assets	10.73M	6.81B	6.50B	5.92B	3.55B	3.54B
Cash, Cash Equivalents and Short-Term Investments	10.73M	3.61M	4.51M	6.39M	18.73M	19.59M
Total Debt	4.14B	3.53B	3.60B	3.40B	2.37B	2.39B
Total Liabilities	4.14B	3.84B	3.87B	3.65B	2.55B	2.50B
Stockholders Equity	-4.13B	-2.98B	-530.82M	-839.77M	10.00K	937.04M
Cash Flow
Free Cash Flow	488.28M	361.47M	254.93M	391.43M	152.86M	-96.96M
Operating Cash Flow	664.03M	637.35M	584.48M	613.01M	235.57M	102.10M
Investing Cash Flow	-611.79M	-176.89M	-686.32M	-286.13M	-99.62M	-505.59M
Financing Cash Flow	-54.05M	-461.36M	99.96M	-339.21M	-136.81M	372.77M

Kinetik Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.56
• 50DMA: Negative
• 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 Neutral. The current price of 39.56 is above the 20-day moving average (MA) of 37.47, below the 50-day MA of 40.06, and below the 200-day MA of 44.88, indicating a neutral trend. The MACD of -0.54 indicates Negative momentum. The RSI at 50.26 is Neutral, neither overbought nor oversold. The STOCH value of 62.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KNTK.

Kinetik Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AM	―	$8.43B	18.73	21.65%	5.11%	7.09%	17.53%
HESM	―	$7.11B	12.56	52.91%	8.37%	9.02%	17.28%
DTM	―	$10.73B	28.39	8.48%	3.00%	15.28%	-9.99%
DKL	―	$2.45B	15.54	―	9.66%	-12.08%	1.44%
Sector *	―	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
KNTK	―	$6.27B	53.55	―	8.05%	16.09%	-71.69%
GEL	―	$1.98B	-10.38	-14.68%	4.23%	-28.72%	-1173.53%

Kinetik Corporate Events

Kinetik Sells Stake in EPIC Crude Holdings

On September 2, 2025, Kinetik Holdings Inc. announced the sale of its 27.5% equity interest in EPIC Crude Holdings, LP to Plains All American Pipeline, L.P. for approximately $500 million in upfront cash and an additional $96 million contingent on capacity expansion approval. This transaction, expected to close by early 2026, aims to maximize shareholder value by reallocating proceeds to growth projects and potentially accelerating shareholder returns.

The most recent analyst rating on (KNTK) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on Kinetik stock, see the KNTK Stock Forecast page.

Kinetik’s Earnings Call: Balancing Achievements and Challenges

The recent earnings call for Kinetik revealed a mixed sentiment, balancing significant achievements with notable challenges. The company celebrated milestones in project commissioning and shareholder value initiatives, yet faced hurdles such as revised EBITDA guidance, commodity price volatility, and increased operating costs, which tempered the overall outlook.

Kinetik Holdings Reports Strong Q2 2025 Results

Kinetik Holdings Inc. is a fully integrated midstream company operating in the Delaware Basin, providing gathering, transportation, compression, processing, and treating services for natural gas, natural gas liquids, crude oil, and water, with headquarters in Houston and Midland, Texas.