Kinetik (KNTK) AI Stock Analysis

• Market Cap: $7.21B
• Dividend Yield: 7.3%
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 61.6
• Beta (1Y): 0.81
• 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: 1,214,635
• 30 Day Avg. Volume: 1,392,309
• 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: 1.54
• Enterprise Value/Revenue: 6.73
• Enterprise Value/Gross Profit: 21.31
• Enterprise Value/Ebitda: 15.08
• 1Y Price Target: $51.60
• Price Target Upside: 20.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 58 Neutral
• Price Target: $44.00 ▲(2.95% Upside)

Kinetik's overall stock score is driven by strong cash flow and operational efficiency, but is weighed down by significant balance sheet risks and high valuation. The earnings call provides a mixed outlook with growth potential tempered by operational challenges.

Positive Factors

Revenue Growth

Kinetik's consistent revenue growth rate of 4.25% in the TTM period highlights its ability to expand its market reach and product adoption, which is crucial for long-term sustainability and competitiveness in the energy and transportation sectors.

Cash Flow Performance

Strong cash flow growth and robust cash generation relative to net income demonstrate Kinetik's ability to maintain liquidity and reinvest in future innovations, supporting its strategic initiatives and operational resilience.

Project Commissioning

The successful commissioning of Kings Landing is a key part of Kinetik's growth strategy, enhancing its capacity and market position, which is expected to drive future revenue and operational efficiency.

Negative Factors

Balance Sheet Challenges

High leverage and negative equity pose risks to Kinetik's financial stability, potentially limiting its ability to finance growth and withstand economic downturns, necessitating financial restructuring for long-term viability.

Increased Operating Costs

Rising operating costs due to inflationary pressures can erode profit margins and affect Kinetik's cost management, challenging its ability to maintain profitability and operational efficiency over the long term.

Commodity Price Volatility

Commodity price volatility can significantly impact Kinetik's financial performance, affecting revenue and profit forecasts, and posing a risk to its ability to achieve stable growth and financial predictability.

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: Negative
• Last Price: 42.74
• 50DMA: Positive
• 100DMA: Positive
• 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 42.74 is below the 20-day moving average (MA) of 43.44, above the 50-day MA of 42.28, and below the 200-day MA of 47.42, indicating a neutral trend. The MACD of 0.76 indicates Positive momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 42.15 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
AM	78 Outperform	$9.32B	20.70	―	4.63%	7.09%	17.53%
DKL	73 Outperform	$2.41B	15.25	401.61%	9.73%	-12.08%	1.44%
HESM	72 Outperform	$7.29B	12.88	42.04%	8.20%	9.02%	17.28%
DTM	69 Neutral	$11.49B	30.39	8.05%	2.83%	15.28%	-9.99%
KNTK	58 Neutral	$7.21B	61.56	-8.21%	7.30%	16.09%	-71.69%
GEL	45 Neutral	$2.04B	-10.72	-191.96%	3.95%	-28.72%	-1173.53%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

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.

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.