Kinetik (KNTK) AI Stock Analysis

• Market Cap: $6.98B
• Dividend Yield: 7.06%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 47.1
• Beta (1Y): 0.88
• Revenue Growth: 23.42%
• EPS Growth: -61.22%
• Country: US
• Employees: 460
• Sector: Energy
• Sector Strength: 72
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.05
• Shares Outstanding: 60,922,480
• 10 Day Avg. Volume: 1,460,291
• 30 Day Avg. Volume: 1,281,989
• 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: 0.46
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 5.88
• Enterprise Value/Ebitda: 1.02
• 1Y Price Target: $53.90
• Price Target Upside: 21.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 58 Neutral
• Price Target: $46.00 ▲(4.10%Upside)

Kinetik's overall stock score is bolstered by strong earnings call performance and robust cash flow generation. However, financial risks from high leverage and negative equity, along with bearish technical indicators, weigh down the score. The high P/E ratio suggests potential overvaluation, offset by a strong dividend yield.

Positive Factors

Acquisitions and growth

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

Financial performance and valuation

The current EV/EBITDA multiple may be less demanding than it appears given the growth outlook, supporting the view that KNTK's equity may still be undervalued.

LNG exports and power demand

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

Negative Factors

Commodity prices and tariffs

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.

Earnings and financial guidance

KNTK's 4Q24 results were weaker than expected due to maintenance issues causing volumes to settle at negative prices.

Market valuation and competition

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
	EBIT
172.41M	179.23M	159.25M	150.49M	53.49M	-1.02B
	EBITDA
810.94M	801.26M	634.19M	653.37M	350.90M	-807.46M
	Net Income Common Stockholders
228.09M	244.23M	386.45M	135.52M	1.48M	-1.15B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.85M	3.61M	4.51M	6.39M	18.73M	19.59M
	Total Assets
7.03B	6.81B	6.50B	5.92B	3.55B	3.54B
	Total Debt
184.78M	3.53B	3.60B	3.40B	2.37B	2.39B
	Net Debt
175.94M	3.53B	3.60B	3.39B	2.35B	2.37B
	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: Negative
• Last Price: 44.19
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 44.19 is below the 20-day moving average (MA) of 44.81, above the 50-day MA of 43.45, and below the 200-day MA of 50.43, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 48.73 is Neutral, neither overbought nor oversold. The STOCH value of 37.24 is Neutral, 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	$8.31B	15.56	49.74%	7.17%	8.77%	15.22%
DTM	79 Outperform	$10.80B	29.07	8.29%	3.08%	10.83%	-10.47%
AM	78 Outperform	$8.76B	21.26	19.71%	4.92%	5.03%	7.15%
PAA	68 Neutral	$12.69B	19.42	9.43%	8.42%	3.40%	-20.48%
DKL	68 Neutral	$2.32B	14.56	542.39%	10.21%	-8.79%	7.75%
KNTK	58 Neutral	$6.98B	47.07	-8.21%	7.06%	23.42%	-61.22%
Sector *	58 Neutral	$7.56B	3.50	-4.45%	10.15%	0.79%	-49.51%

Kinetik Corporate Events

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.