Kinetik (KNTK)
NYSE:KNTK
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Kinetik
(NYSE:KNTK)
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Rating:69Neutral
Price Target:
$51.00
â–²(9.00% Upside)
Action:ReiteratedDate:04/04/26
The score is driven by strong cash generation and constructive guidance/operational execution, supported by positive price trend signals and an attractive yield with a moderate P/E. The primary offset is elevated balance-sheet risk from high leverage and negative equity, plus continued exposure to Waha-driven curtailments that can pressure near-term cash flow.
Positive Factors
Cash generation strength
Kinetik’s sustained positive operating cash flow and multi-year free cash flow since 2021 indicate durable internal funding capacity. Consistent OCF supports coverage of interest, funding of capex and dividends, and enables buybacks or deleveraging without relying solely on external capital markets.
Negative Factors
High leverage and negative equity
Substantial and rising debt combined with persistent negative shareholders’ equity materially weakens the balance-sheet cushion. This elevates refinancing, covenant and funding risk, constrains strategic flexibility, and increases sensitivity to downturns in volumes or commodity spreads.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation strength
Kinetik’s sustained positive operating cash flow and multi-year free cash flow since 2021 indicate durable internal funding capacity. Consistent OCF supports coverage of interest, funding of capex and dividends, and enables buybacks or deleveraging without relying solely on external capital markets.
Read all positive factors
Kinetik (KNTK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.59B
Dividend Yield8.77%
Average Volume (3M)1.12M
Price to Earnings (P/E)12.5
Beta (1Y)0.88
Revenue Growth15.00%
EPS Growth-84.96%
CountryUS
Employees460
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)2.16
Shares Outstanding64,590,740
10 Day Avg. Volume1,217,754
30 Day Avg. Volume1,119,828
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)-3.95
Price to Sales (P/S)1.27
P/FCF Ratio30.00
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue3.90
Enterprise Value/Gross Profit12.36
Enterprise Value/Ebitda5.79
Forecast
1Y Price Target
$50.18Price Target Upside7.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)1.12
Revenue Forecast (FY)$1.96B
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 wa...
How the Company Makes Money
Kinetik makes money by providing midstream services and charging fees tied to the volumes of hydrocarbons it gathers, processes, transports, and handles. Key revenue streams typically include: (1) Gathering fees: payments from producers for moving...
Kinetik Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call balanced clear operational and strategic progress (Kings Landing reliability, FIDs for sour conversion and behind-the-meter power, bolt-on acquisition, contract restructurings, deleveraging and share repurchases, and guidance for mid-single-digit to >7% pro forma EBITDA growth) against persistent market headwinds (Waha price volatility and material curtailments, a negative free cash flow quarter, and the near-term earnings impact from the EPIC Crude divestiture and PHP distribution timing). Management presented a credible plan to mitigate risks—hedging, Gulf Coast transport utilization, contract amendments, disciplined capital allocation—and reiterated targets for leverage and shareholder returns. Overall, operational execution and strategic actions give constructive momentum, but meaningful execution and commodity/takeaway developments are required to fully realize the upside.Positive Updates
Quarterly and Full-Year Adjusted EBITDA
Reported Q4 adjusted EBITDA of $252 million and full-year 2025 adjusted EBITDA of $988 million (slightly above the midpoint of revised guidance). 2026 adjusted EBITDA guidance of $950 million to $1.05 billion (midpoint $1.0 billion) implies >7% year-over-year growth on a pro forma basis excluding the EPIC Crude sale.
Negative Updates
Industry Headwinds and Underperformance
Management acknowledged 2025 as a challenging year with commodity price volatility, macro uncertainty, tempered customer development activity and inflationary pressures; financial results 'underperformed expectations' in 2025.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly and Full-Year Adjusted EBITDA
Reported Q4 adjusted EBITDA of $252 million and full-year 2025 adjusted EBITDA of $988 million (slightly above the midpoint of revised guidance). 2026 adjusted EBITDA guidance of $950 million to $1.05 billion (midpoint $1.0 billion) implies >7% year-over-year growth on a pro forma basis excluding the EPIC Crude sale.
Read all positive updates
Company Guidance
Management guided 2026 adjusted EBITDA of $950 million to $1.05 billion (midpoint $1.0 billion, >7% y/y growth ex-EPIC Crude), with capital expenditures of $450 million to $510 million (≈70% in New Mexico); they expect system gas processing to grow high-single-digits, inlet volumes >2.0 Bcf/d in H2 (supported by ECCC in-service next quarter and Kings Landing ramp), and assume ~100 MMcf/d of Waha price-related shut‑ins (most in spring/fall), ~84% of gross profit fixed‑fee, OpEx flat-to-slightly-down vs Q3 2025, and ~40% of Gulf Coast transport spread exposure hedged; projects noted include Kings Landing (99.8% runtime) and its sour conversion (FID; AGI capacity to exceed 31 MMcf/d), a 40 MW behind‑the‑meter turbine at Diamond Cryo (<$25M capex, arrives Q2, in service late‑2026), and a capital allocation framework targeting 3.5x–4.0x leverage (exited 2025 at 3.8x), annual dividend growth of 3%–5% until 1.6x coverage, opportunistic buybacks, and preservation of investment‑grade flexibility (FY2025 results referenced: adjusted EBITDA $988M; 4Q adjusted EBITDA $252M; DCF $152M; FCF -$12M; FY CapEx $497M; share repurchases $176M).Kinetik Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
28
Negative
Cash Flow
79
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.76B | 1.48B | 1.26B | 1.21B | 662.04M |
| Gross Profit | 324.39M | 538.11M | 459.70M | 411.63M | 184.87M |
| EBITDA | 1.19B | 801.26M | 634.19M | 653.37M | 350.90M |
| Net Income | 178.26M | 244.23M | 386.45M | 135.52M | 1.48M |
Balance Sheet | |||||
| Total Assets | 7.27B | 6.81B | 6.50B | 5.92B | 3.55B |
| Cash, Cash Equivalents and Short-Term Investments | 3.95M | 3.61M | 4.51M | 6.39M | 18.73M |
| Total Debt | 3.87B | 3.53B | 3.60B | 3.40B | 2.37B |
| Total Liabilities | 4.34B | 3.84B | 3.87B | 3.65B | 2.55B |
| Stockholders Equity | -565.38M | -2.98B | -530.82M | -839.77M | 10.00K |
Cash Flow | |||||
| Free Cash Flow | 74.45M | 361.47M | 254.93M | 391.43M | 152.86M |
| Operating Cash Flow | 604.12M | 637.35M | 584.48M | 613.01M | 235.57M |
| Investing Cash Flow | -199.09M | -176.89M | -686.32M | -286.13M | -99.62M |
| Financing Cash Flow | -404.68M | -461.36M | 99.96M | -339.21M | -136.81M |
Kinetik Technical Analysis
Positive
46.79
Price Trends
45.13
Positive
40.41
Positive
39.63
Positive
Market Momentum
0.51
Positive
53.22
Neutral
56.13
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 46.79 is below the 20-day moving average (MA) of 46.91, above the 50-day MA of 45.13, and above the 200-day MA of 39.63, indicating a neutral trend. The MACD of 0.51 indicates Positive momentum. The RSI at 53.22 is Neutral, neither overbought nor oversold. The STOCH value of 56.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KNTK.
Kinetik Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $13.45B | 27.57 | 9.41% | 2.70% | 20.39% | -3.85% | |
74 Outperform | $10.06B | 20.58 | 20.12% | 4.98% | 8.70% | 21.42% | |
73 Outperform | $7.74B | 11.96 | 59.38% | 8.45% | 10.78% | 19.10% | |
71 Outperform | $2.61B | 13.53 | 461.30% | 9.78% | -1.78% | 9.32% | |
69 Neutral | $7.59B | 12.53 | -15.64% | 8.77% | 15.00% | -84.96% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | $2.11B | 24.04 | -162.28% | 4.14% | -36.47% | -75.37% |
* Energy Sector Average
KNTK
Kinetik
46.79
6.64
16.54%
GEL
Genesis Energy
17.26
4.08
30.91%
DKL
Delek Logistics
48.81
15.77
47.74%
AM
Antero Midstream
21.26
5.24
32.73%
HESM
Hess Midstream Partners
37.25
3.33
9.81%
DTM
DT Midstream
131.88
39.02
42.02%
Kinetik Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Kinetik Amends and Extends Receivables Securitization Facility
Positive
Apr 3, 2026
On March 31, 2026, Kinetik Holdings LP amended its accounts receivable securitization facility, extending the scheduled termination date of the program to March 30, 2027 and maintaining PNC Bank, National Association, as administrative agent. The ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.