Kinetik (KNTK) AI Stock Analysis

• Market Cap: $5.57B
• Dividend Yield: 9.5%
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 85.0
• Beta (1Y): 0.92
• Revenue Growth: 15.00%
• EPS Growth: -84.96%
• Country: US
• Employees: 460
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.03
• Shares Outstanding: 64,027,440
• 10 Day Avg. Volume: 1,319,917
• 30 Day Avg. Volume: 1,265,412
• 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: 2.02
• Enterprise Value/Revenue: 6.56
• Enterprise Value/Gross Profit: 19.33
• Enterprise Value/Ebitda: 15.54
• 1Y Price Target: $48.40
• Price Target Upside: 47.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.23
• Revenue Forecast (FY): $1.71B

• Rating: 52 Neutral
• Price Target: $34.00 ▲(3.56% Upside)

Kinetik's overall stock score is primarily impacted by its financial performance, which is constrained by high leverage and declining margins. Technical analysis indicates bearish momentum, and valuation metrics suggest overvaluation despite a high dividend yield. The earnings call provided a balanced view of strategic successes and operational challenges.

Positive Factors

Revenue Growth

Steady revenue growth indicates a strong market position and effective business model, supporting long-term financial health and expansion potential.

Strategic Partnerships

Strategic partnerships enhance market reach and operational capabilities, providing opportunities for collaborative growth and increased revenue streams.

Cash Flow Management

Strong cash flow management ensures liquidity and financial flexibility, enabling investment in growth initiatives and resilience against market fluctuations.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth and weather economic downturns.

Declining Margins

Declining margins can erode profitability and shareholder value, challenging the company's ability to sustain growth and competitive positioning.

Commodity Price Volatility

Commodity price volatility can impact revenue and profitability, creating uncertainty and challenging the company's ability to forecast and plan effectively.

Kinetik Business Overview & Revenue Model

Company Description

Kinetik (KNTK) is a technology company specializing in the development of innovative solutions for the energy and transportation sectors. The company focuses on creating advanced kinetic energy recovery systems, electric vehicle (EV) charging infrastructure, and smart grid technology. By leveraging cutting-edge engineering and data analytics, Kinetik aims to enhance energy efficiency and promote sustainable practices across various industries, contributing to a cleaner and greener future.

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 shows strong cash flow management and operational efficiency, with a solid cash flow performance. However, the company faces significant challenges with high leverage and declining net profit margins, which impact financial stability and shareholder returns.

Income Statement

Kinetik's revenue growth has been steady, with a 4.1% increase in the TTM period. However, margins have declined compared to the previous year, with the net profit margin dropping from 16.5% to 3.7%. The company maintains a reasonable EBIT margin of 22.7% and an EBITDA margin of 44.6%, indicating operational efficiency despite the lower net income.

Balance Sheet

The balance sheet shows significant leverage, with a negative equity position and a debt-to-equity ratio of -1.00 in the TTM period. This high leverage poses a risk, although the company has managed to maintain its operations. The return on equity is negative, reflecting the challenges in generating returns for shareholders.

Cash Flow

Kinetik's cash flow performance is strong, with a 7.7% growth in free cash flow in the TTM period. The operating cash flow to net income ratio of 3.51 indicates good cash generation relative to net income. The free cash flow to net income ratio of 0.74 suggests efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.72B	1.48B	1.26B	1.21B	662.04M	410.18M
Gross Profit	583.58M	538.11M	459.70M	411.63M	184.87M	121.36M
EBITDA	725.73M	801.26M	634.19M	653.37M	350.90M	-807.46M
Net Income	125.45M	244.23M	386.45M	135.52M	1.48M	-1.16B
Balance Sheet
Total Assets	7.20B	6.81B	6.50B	5.92B	3.55B	3.60B
Cash, Cash Equivalents and Short-Term Investments	7.74M	3.61M	4.51M	6.39M	18.73M	19.59M
Total Debt	4.22B	3.53B	3.60B	3.40B	2.37B	2.45B
Total Liabilities	4.58B	3.84B	3.87B	3.65B	2.55B	2.56B
Stockholders Equity	-1.78B	-2.98B	-530.82M	-839.77M	10.00K	1.04B
Cash Flow
Free Cash Flow	353.87M	361.47M	254.93M	391.43M	152.86M	-96.96M
Operating Cash Flow	638.02M	637.35M	584.48M	613.01M	235.57M	102.10M
Investing Cash Flow	-673.91M	-176.89M	-686.32M	-286.13M	-99.62M	-505.59M
Financing Cash Flow	23.19M	-461.36M	99.96M	-339.21M	-136.81M	372.77M

Kinetik Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.83
• 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 32.83 is below the 20-day moving average (MA) of 36.48, below the 50-day MA of 38.70, and below the 200-day MA of 43.18, indicating a bearish trend. The MACD of -1.39 indicates Positive momentum. The RSI at 37.12 is Neutral, neither overbought nor oversold. The STOCH value of 12.56 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
AM	78 Outperform	$8.65B	18.61	22.52%	4.96%	8.70%	21.42%
DTM	75 Outperform	$11.79B	29.40	9.04%	2.91%	20.39%	-3.85%
DKL	73 Outperform	$2.43B	14.72	―	9.88%	-1.78%	9.32%
HESM	72 Outperform	$6.92B	11.85	59.81%	8.91%	10.78%	19.10%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
KNTK	52 Neutral	$5.57B	85.04	―	9.50%	15.00%	-84.96%
GEL	49 Neutral	$1.96B	―	-11.88%	4.12%	-36.47%	-75.37%

Kinetik Corporate Events

Kinetik’s Earnings Call: Strategic Wins Amid Challenges

Kinetik’s recent earnings call painted a picture of both strategic progress and notable challenges. The company celebrated achievements like the successful launch of the Kings Landing project and new partnerships, yet also faced hurdles such as project delays, commodity price fluctuations, and production curtailments. Despite acknowledging past errors, Kinetik expressed a strong commitment to enhancing forecasting and cost management.

Kinetik Holdings Reports Q3 2025 Earnings and Guidance

Kinetik Holdings Inc., a fully integrated midstream company, operates in the Delaware Basin providing comprehensive services for natural gas, liquids, crude oil, and water transportation from the Permian to the Gulf Coast. In its third-quarter 2025 earnings report, Kinetik announced a net income of $15.5 million and an adjusted EBITDA of $242.6 million, alongside strategic moves such as the divestiture of its stake in EPIC Crude Holdings and the full commercial in-service of the Kings Landing Complex. Key financial metrics included a distributable cash flow of $158.5 million and a free cash flow of $50.9 million for the quarter. The company also revised its 2025 financial guidance, adjusting its EBITDA forecast to a range of $965 million to $1.005 billion and capital expenditures to $485 million to $515 million. Looking ahead, Kinetik remains focused on strategic projects, including the acid gas injection project at Kings Landing and new agreements for natural gas transport capacity, positioning itself to capture opportunities despite current commodity headwinds.

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.