Kinetik (KNTK) AI Stock Analysis

• Market Cap: $6.45B
• Dividend Yield: 7.85%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 55.1
• Beta (1Y): 0.80
• Revenue Growth: 16.09%
• EPS Growth: -71.69%
• Country: US
• Employees: 460
• Sector: Energy
• Sector Strength: 49
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.33
• Shares Outstanding: 61,474,514
• 10 Day Avg. Volume: 812,932
• 30 Day Avg. Volume: 1,093,133
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 6.73
• Enterprise Value/Gross Profit: 21.31
• Enterprise Value/Ebitda: 15.08
• 1Y Price Target: $52.00
• Price Target Upside: 30.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 54 Neutral
• Price Target: $43.00 ▲(7.96% Upside)

Kinetik's overall score reflects strong cash flow and operational efficiency but is weighed down by significant balance sheet risks and bearish technical indicators. The mixed sentiment from the earnings call and high P/E ratio further contribute to a cautious outlook.

Positive Factors

Demand for natural gas

KNTK is very well positioned to benefit from growing demand for natural gas driven by LNG exports and demand for natural gas-based power generation.

Growth outlook

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

Long-term growth

Despite a negative share price reaction, KNTK's long-term growth case remains intact with capex opportunities supporting a higher growth rate versus peers.

Negative Factors

Earnings performance

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

Guidance expectations

KNTK's initial FY25 guidance was lower than expected, and capex guidance was higher than anticipated.

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 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 revenue growth and improved profitability, with significant increases in net profit margins. However, the balance sheet is concerning due to negative equity and high leverage, which poses financial risks. Cash flow generation is a relative strength, providing some 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	1.65B	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	-220.19M	-176.89M	-686.32M	-286.13M	-99.62M	-505.59M
Financing Cash Flow	-146.88M	-461.36M	99.96M	-339.21M	-136.81M	372.77M

Kinetik Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNTK, the sentiment is Negative. The current price of 39.83 is below the 20-day moving average (MA) of 41.54, below the 50-day MA of 41.75, and below the 200-day MA of 48.95, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 39.67 is Neutral, neither overbought nor oversold. The STOCH value of 13.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KNTK.

Kinetik Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HESM	80 Outperform	$8.60B	15.19	52.91%	6.86%	9.02%	17.28%
AM	78 Outperform	$8.34B	18.52	21.65%	5.15%	7.09%	17.53%
DTM	77 Outperform	$10.36B	27.42	8.48%	3.03%	15.28%	-9.99%
DKL	73 Outperform	$2.30B	14.60	542.39%	10.27%	-12.08%	1.44%
PAA	68 Neutral	$12.31B	19.35	8.34%	8.30%	-4.31%	-17.80%
Sector *	54 Neutral	C$4.15B	0.97	16.40%	5.23%	10.45%	-57.37%
KNTK	54 Neutral	$6.45B	55.09	-8.21%	7.85%	16.09%	-71.69%

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.