The Oils-Energy group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Kinetik Holdings Inc. (KNTK - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Oils-Energy peers, we might be able to answer that question.
Kinetik Holdings Inc. is one of 250 individual stocks in the Oils-Energy sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Kinetik Holdings Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for KNTK's full-year earnings has moved 108.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that KNTK has returned about 51.3% since the start of the calendar year. In comparison, Oils-Energy companies have returned an average of 32.9%. This shows that Kinetik Holdings Inc. is outperforming its peers so far this year.
Another Oils-Energy stock, which has outperformed the sector so far this year, is Sunoco LP (SUN - Free Report) . The stock has returned 51% year-to-date.
For Sunoco LP, the consensus EPS estimate for the current year has increased 20.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Kinetik Holdings Inc. belongs to the Oil and Gas - Field Services industry, a group that includes 19 individual companies and currently sits at #102 in the Zacks Industry Rank. On average, stocks in this group have gained 28.7% this year, meaning that KNTK is performing better in terms of year-to-date returns.
Sunoco LP, however, belongs to the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry. Currently, this 7-stock industry is ranked #10. The industry has moved +43.6% so far this year.
Going forward, investors interested in Oils-Energy stocks should continue to pay close attention to Kinetik Holdings Inc. and Sunoco LP as they could maintain their solid performance.
U.S. pipeline operator Kinetik Holdings (KNTK.N) is in the early stages of exploring a potential sale of the company, three sources familiar with the matter said on Wednesday.
The move comes at a time of significant interest, both from energy companies and financial investors, in owning energy infrastructure. This is supported by a number of factors, including the importance of supplying natural gas for power generation used by data centers.
Headquartered in both Houston and Midland, Texas, Kinetik is working with advisers on the process, said the sources, who cautioned that no deal was guaranteed and spoke on condition of anonymity to discuss confidential deliberations.
Investment firm Blackstone (BX.N) controls around 48% of Kinetik, with infrastructure investor I Squared Capital owning roughly 19%, according to regulatory filings. Their ownership traces back to EagleClaw Midstream, which was combined with Altus Midstream in 2022 to create Kinetik.
Kinetik and Blackstone declined comment. I Squared did not respond to a comment request.
Kinetik focuses on transporting natural gas and crude oil from wells in the Delaware portion of the Permian basin of Texas and New Mexico. It has more than 4,600 miles (7,400 km) of pipelines, as well as associated compression and processing infrastructure, according to its website.
Its position in the Permian would make Kinetik an attractive takeover target for another midstream company seeking to grow its operations in the heart of the U.S. shale industry.
Dealmaking involving pipeline companies has been robust in recent months. Enbridge (ENB.TO) said on Wednesday it was buying the oil business of privately owned Tallgrass Energy for $2.55 billion. ONEOK (OKE.N) announced on August 30 it would acquire for $4.43 billion the Midland basin assets of Brazos Midstream from buyout firms Old Ironsides Energy and EnCap Flatrock Midstream.
Bloomberg News had earlier on Wednesday reported Kinetik was exploring sale options, citing people familiar with the matter.
Kinetik Holdings Inc. (NYSE:KNTK – Get Free Report) major shareholder Isq Global Fund Ii Gp Llc sold 26,550 shares of the firm’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $50.24, for a total transaction of $1,333,872.00. Following the transaction, the insider directly owned 1,664,820 shares of the company’s stock, valued at $83,640,556.80. This represents a 1.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Major shareholders that own more than 10% of a company’s shares are required to disclose their sales and purchases with the SEC.
Isq Global Fund Ii Gp Llc also recently made the following trade(s):
On Thursday, August 6th, Isq Global Fund Ii Gp Llc sold 235,349 shares of Kinetik stock. The shares were sold at an average price of $50.52, for a total transaction of $11,889,831.48. On Monday, August 3rd, Isq Global Fund Ii Gp Llc sold 2,175 shares of Kinetik stock. The stock was sold at an average price of $50.04, for a total transaction of $108,837.00. Kinetik Stock Down 0.2% Shares of KNTK stock opened at $49.08 on Monday. Kinetik Holdings Inc. has a 12 month low of $31.33 and a 12 month high of $52.54. The company’s fifty day simple moving average is $48.31 and its 200-day simple moving average is $46.65. The firm has a market cap of $7.97 billion, a PE ratio of 17.78, a P/E/G ratio of 1.94 and a beta of 0.56.
Kinetik (NYSE:KNTK – Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.19 by $0.45. Kinetik had a net margin of 26.19% and a negative return on equity of 38.96%. The firm had revenue of $581.44 million for the quarter, compared to analyst estimates of $421.48 million. During the same period in the previous year, the business earned $0.33 EPS. The company’s revenue was up 36.3% compared to the same quarter last year. On average, equities analysts predict that Kinetik Holdings Inc. will post 0.81 earnings per share for the current fiscal year.
Trending Headlines about Kinetik Here are the key news stories impacting Kinetik this week:
Positive Sentiment: Kinetik reported second-quarter earnings of $0.64 per share, far above the $0.19 analyst consensus and up from $0.33 a year earlier. Revenue rose 36.3% year over year to $581.4 million, also exceeding expectations. Kinetik Holdings Beats Q2 Earnings and Revenue Estimates Positive Sentiment: Management’s results and commentary highlighted strong NGL recoveries, downstream optimization and dividend coverage. Planned projects—including Kings Landing II, the ECCC Pipeline and expanded Gulf Coast access—could support multiyear EBITDA growth by allowing Kinetik to monetize capacity constraints in the Permian Basin. Kinetik Holdings Monetizing the Permian’s Constraints Neutral Sentiment: The earnings improvement strengthens Kinetik’s fundamental outlook, but one analysis argued that the stock is still not inexpensive. Shares trade near their 52-week high, with a P/E ratio around 17, potentially limiting near-term upside unless growth continues to exceed expectations. Kinetik Better Q2 Earnings, Still Not Cheap Negative Sentiment: Major shareholder ISQ Global Fund II GP LLC disclosed sales totaling approximately $13.3 million across August 3, 6 and 7. The transactions reduced its reported holdings, with the largest sale involving 235,349 shares. While the sales do not change Kinetik’s operations, they may create an overhang and raise short-term concerns about insider conviction. SEC Form 4 Insider Sale Filing Wall Street Analysts Forecast Growth KNTK has been the subject of several recent research reports. Raymond James Financial reissued an “outperform” rating and set a $55.00 price target on shares of Kinetik in a research report on Friday. Mizuho upped their price objective on Kinetik from $48.00 to $51.00 and gave the stock an “outperform” rating in a research note on Tuesday, April 28th. US Capital Advisors raised Kinetik from a “moderate buy” rating to a “strong-buy” rating in a report on Friday, May 29th. Wall Street Zen raised Kinetik from a “strong sell” rating to a “hold” rating in a report on Saturday. Finally, Scotiabank reissued an “outperform” rating and issued a $52.00 target price (up from $51.00) on shares of Kinetik in a research note on Tuesday, May 12th. Three analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $52.07.
View Our Latest Report on KNTK
Institutional Investors Weigh In On Kinetik Hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. increased its position in Kinetik by 9.4% during the fourth quarter. Vanguard Group Inc. now owns 5,096,786 shares of the company’s stock worth $183,739,000 after buying an additional 439,586 shares during the last quarter. Zimmer Partners LP acquired a new stake in shares of Kinetik in the fourth quarter valued at approximately $98,611,000. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT lifted its position in shares of Kinetik by 1.7% in the first quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 1,874,000 shares of the company’s stock valued at $90,720,000 after buying an additional 30,600 shares during the last quarter. Cohen & Steers Inc. boosted its stake in shares of Kinetik by 82.5% during the 4th quarter. Cohen & Steers Inc. now owns 1,843,506 shares of the company’s stock worth $66,458,000 after acquiring an additional 833,224 shares during the period. Finally, Invesco Ltd. boosted its stake in shares of Kinetik by 22.4% during the 4th quarter. Invesco Ltd. now owns 1,775,216 shares of the company’s stock worth $63,997,000 after acquiring an additional 325,251 shares during the period. 21.11% of the stock is currently owned by institutional investors and hedge funds.
About Kinetik (Get Free Report)
Kinetik (NYSE: KNTK) is a publicly listed midstream energy company focused on the development, operation and management of natural gas infrastructure across the United States. The company’s core business activities include the gathering, compression, processing, storage and transportation of natural gas, serving producers, utilities and industrial consumers. By integrating a suite of midstream services under a single platform, Kinetik aims to provide efficient, cost-effective and reliable solutions across the natural gas value chain.
The company was established in 2021 when assets were acquired from Talen Energy by a subsidiary of ArcLight Capital Partners, forming a comprehensive portfolio of pipelines, compression facilities and underground storage assets.
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Kinetik Holdings Inc. (NYSE:KNTK – Get Free Report) major shareholder Isq Global Fund Ii Gp Llc sold 235,349 shares of the business’s stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $50.52, for a total transaction of $11,889,831.48. Following the completion of the sale, the insider directly owned 1,691,370 shares in the company, valued at $85,448,012.40. This trade represents a 12.22% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Major shareholders that own more than 10% of a company’s stock are required to disclose their sales and purchases with the SEC.
Isq Global Fund Ii Gp Llc also recently made the following trade(s):
On Friday, August 7th, Isq Global Fund Ii Gp Llc sold 26,550 shares of Kinetik stock. The stock was sold at an average price of $50.24, for a total value of $1,333,872.00. On Monday, August 3rd, Isq Global Fund Ii Gp Llc sold 2,175 shares of Kinetik stock. The stock was sold at an average price of $50.04, for a total value of $108,837.00. Kinetik Price Performance Shares of KNTK stock opened at $49.08 on Monday. The stock’s fifty day simple moving average is $48.31 and its 200 day simple moving average is $46.65. Kinetik Holdings Inc. has a one year low of $31.33 and a one year high of $52.54. The firm has a market cap of $7.97 billion, a price-to-earnings ratio of 17.78, a P/E/G ratio of 1.94 and a beta of 0.56.
Kinetik (NYSE:KNTK – Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.19 by $0.45. The company had revenue of $581.44 million for the quarter, compared to the consensus estimate of $421.48 million. Kinetik had a net margin of 26.19% and a negative return on equity of 38.96%. The firm’s revenue for the quarter was up 36.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.33 EPS. On average, research analysts anticipate that Kinetik Holdings Inc. will post 0.81 earnings per share for the current year.
Hedge Funds Weigh In On Kinetik Institutional investors have recently modified their holdings of the business. Zimmer Partners LP bought a new stake in Kinetik in the 4th quarter valued at approximately $98,611,000. Wellington Management Group LLP increased its position in shares of Kinetik by 149.6% in the fourth quarter. Wellington Management Group LLP now owns 1,608,403 shares of the company’s stock valued at $57,983,000 after acquiring an additional 964,130 shares during the last quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT grew its stake in shares of Kinetik by 86.5% in the fourth quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 1,843,400 shares of the company’s stock valued at $66,455,000 after buying an additional 855,000 shares in the last quarter. Cohen & Steers Inc. increased its holdings in Kinetik by 82.5% during the fourth quarter. Cohen & Steers Inc. now owns 1,843,506 shares of the company’s stock worth $66,458,000 after buying an additional 833,224 shares during the last quarter. Finally, Principal Financial Group Inc. raised its position in Kinetik by 382.8% during the fourth quarter. Principal Financial Group Inc. now owns 1,018,692 shares of the company’s stock worth $36,724,000 after acquiring an additional 807,707 shares in the last quarter. Institutional investors own 21.11% of the company’s stock.
Analysts Set New Price Targets A number of analysts recently weighed in on KNTK shares. US Capital Advisors raised shares of Kinetik from a “moderate buy” rating to a “strong-buy” rating in a report on Friday, May 29th. Citigroup reissued a “buy” rating and issued a $52.00 price target (up from $51.00) on shares of Kinetik in a research note on Tuesday, May 12th. Scotiabank restated an “outperform” rating and issued a $52.00 price target (up from $51.00) on shares of Kinetik in a research report on Tuesday, May 12th. Tudor Pickering started coverage on Kinetik in a research note on Monday, July 20th. They set a “buy” rating and a $57.00 price objective for the company. Finally, Royal Bank Of Canada reissued an “outperform” rating and issued a $56.00 target price on shares of Kinetik in a research note on Tuesday, July 21st. Three research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $52.07.
View Our Latest Stock Analysis on KNTK
Key Kinetik News Here are the key news stories impacting Kinetik this week:
Positive Sentiment: Kinetik reported second-quarter earnings of $0.64 per share, far above the $0.19 analyst consensus and up from $0.33 a year earlier. Revenue rose 36.3% year over year to $581.4 million, also exceeding expectations. Kinetik Holdings Beats Q2 Earnings and Revenue Estimates Positive Sentiment: Management’s results and commentary highlighted strong NGL recoveries, downstream optimization and dividend coverage. Planned projects—including Kings Landing II, the ECCC Pipeline and expanded Gulf Coast access—could support multiyear EBITDA growth by allowing Kinetik to monetize capacity constraints in the Permian Basin. Kinetik Holdings Monetizing the Permian’s Constraints Neutral Sentiment: The earnings improvement strengthens Kinetik’s fundamental outlook, but one analysis argued that the stock is still not inexpensive. Shares trade near their 52-week high, with a P/E ratio around 17, potentially limiting near-term upside unless growth continues to exceed expectations. Kinetik Better Q2 Earnings, Still Not Cheap Negative Sentiment: Major shareholder ISQ Global Fund II GP LLC disclosed sales totaling approximately $13.3 million across August 3, 6 and 7. The transactions reduced its reported holdings, with the largest sale involving 235,349 shares. While the sales do not change Kinetik’s operations, they may create an overhang and raise short-term concerns about insider conviction. SEC Form 4 Insider Sale Filing Kinetik Company Profile (Get Free Report)
Kinetik (NYSE: KNTK) is a publicly listed midstream energy company focused on the development, operation and management of natural gas infrastructure across the United States. The company’s core business activities include the gathering, compression, processing, storage and transportation of natural gas, serving producers, utilities and industrial consumers. By integrating a suite of midstream services under a single platform, Kinetik aims to provide efficient, cost-effective and reliable solutions across the natural gas value chain.
The company was established in 2021 when assets were acquired from Talen Energy by a subsidiary of ArcLight Capital Partners, forming a comprehensive portfolio of pipelines, compression facilities and underground storage assets.
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Empowered Funds LLC acquired a new stake in Kinetik Holdings Inc. (NYSE:KNTK – Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 29,577 shares of the company’s stock, valued at approximately $1,432,000.
Several other hedge funds and other institutional investors have also recently bought and sold shares of KNTK. ProShare Advisors LLC grew its position in shares of Kinetik by 3.5% in the fourth quarter. ProShare Advisors LLC now owns 8,633 shares of the company’s stock valued at $311,000 after purchasing an additional 294 shares during the period. Maryland State Retirement & Pension System lifted its position in Kinetik by 5.4% during the fourth quarter. Maryland State Retirement & Pension System now owns 6,612 shares of the company’s stock worth $238,000 after buying an additional 337 shares during the period. Federated Hermes Inc. lifted its position in Kinetik by 0.4% during the second quarter. Federated Hermes Inc. now owns 89,133 shares of the company’s stock worth $3,926,000 after buying an additional 346 shares during the period. CWM LLC boosted its stake in Kinetik by 89.8% in the 4th quarter. CWM LLC now owns 744 shares of the company’s stock worth $27,000 after buying an additional 352 shares during the last quarter. Finally, Captrust Financial Advisors boosted its stake in Kinetik by 4.9% in the 4th quarter. Captrust Financial Advisors now owns 8,420 shares of the company’s stock worth $304,000 after buying an additional 390 shares during the last quarter. 21.11% of the stock is currently owned by institutional investors and hedge funds.
Insider Transactions at Kinetik In other Kinetik news, major shareholder Isq Global Fund Ii Gp Llc sold 26,550 shares of the business’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $50.24, for a total value of $1,333,872.00. Following the completion of the sale, the insider owned 1,664,820 shares of the company’s stock, valued at $83,640,556.80. The trade was a 1.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders have sold 264,074 shares of company stock valued at $13,332,540 in the last ninety days. 3.56% of the stock is owned by insiders.
Analyst Ratings Changes A number of equities analysts have weighed in on KNTK shares. Tudor Pickering assumed coverage on shares of Kinetik in a research note on Monday, July 20th. They set a “buy” rating and a $57.00 price target on the stock. Mizuho increased their target price on Kinetik from $48.00 to $51.00 and gave the stock an “outperform” rating in a research report on Tuesday, April 28th. Raymond James Financial reiterated an “outperform” rating and issued a $55.00 target price on shares of Kinetik in a report on Friday. Wall Street Zen upgraded Kinetik from a “strong sell” rating to a “hold” rating in a research note on Saturday. Finally, US Capital Advisors upgraded Kinetik from a “moderate buy” rating to a “strong-buy” rating in a report on Friday, May 29th. Three equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, Kinetik currently has a consensus rating of “Moderate Buy” and an average target price of $52.07.
Get Our Latest Stock Analysis on Kinetik
Key Kinetik News Here are the key news stories impacting Kinetik this week:
Positive Sentiment: Kinetik reported second-quarter earnings of $0.64 per share, far above the $0.19 analyst consensus and up from $0.33 a year earlier. Revenue rose 36.3% year over year to $581.4 million, also exceeding expectations. Kinetik Holdings Beats Q2 Earnings and Revenue Estimates Positive Sentiment: Management’s results and commentary highlighted strong NGL recoveries, downstream optimization and dividend coverage. Planned projects—including Kings Landing II, the ECCC Pipeline and expanded Gulf Coast access—could support multiyear EBITDA growth by allowing Kinetik to monetize capacity constraints in the Permian Basin. Kinetik Holdings Monetizing the Permian’s Constraints Neutral Sentiment: The earnings improvement strengthens Kinetik’s fundamental outlook, but one analysis argued that the stock is still not inexpensive. Shares trade near their 52-week high, with a P/E ratio around 17, potentially limiting near-term upside unless growth continues to exceed expectations. Kinetik Better Q2 Earnings, Still Not Cheap Negative Sentiment: Major shareholder ISQ Global Fund II GP LLC disclosed sales totaling approximately $13.3 million across August 3, 6 and 7. The transactions reduced its reported holdings, with the largest sale involving 235,349 shares. While the sales do not change Kinetik’s operations, they may create an overhang and raise short-term concerns about insider conviction. SEC Form 4 Insider Sale Filing Kinetik Stock Performance Kinetik stock opened at $49.08 on Friday. The firm has a market cap of $7.97 billion, a price-to-earnings ratio of 17.78, a price-to-earnings-growth ratio of 1.98 and a beta of 0.56. Kinetik Holdings Inc. has a 1 year low of $31.33 and a 1 year high of $52.54. The firm’s 50 day moving average price is $48.31 and its two-hundred day moving average price is $46.59.
Kinetik (NYSE:KNTK – Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.19 by $0.45. The business had revenue of $581.44 million during the quarter, compared to the consensus estimate of $421.48 million. Kinetik had a net margin of 26.19% and a negative return on equity of 37.86%. The firm’s quarterly revenue was up 36.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.33 EPS. As a group, equities analysts predict that Kinetik Holdings Inc. will post 0.81 EPS for the current fiscal year.
About Kinetik (Free Report)
Kinetik (NYSE: KNTK) is a publicly listed midstream energy company focused on the development, operation and management of natural gas infrastructure across the United States. The company’s core business activities include the gathering, compression, processing, storage and transportation of natural gas, serving producers, utilities and industrial consumers. By integrating a suite of midstream services under a single platform, Kinetik aims to provide efficient, cost-effective and reliable solutions across the natural gas value chain.
The company was established in 2021 when assets were acquired from Talen Energy by a subsidiary of ArcLight Capital Partners, forming a comprehensive portfolio of pipelines, compression facilities and underground storage assets.
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Kinetik NYSE: KNTK reported what President and Chief Executive Officer Jamie Welch described as the strongest financial results in the company’s history for the second quarter of 2026, citing operating execution, system performance and a supportive commodity-price environment. The company raised its full-year Adjusted EBITDA guidance by $70 million at the midpoint and increased its capital spending outlook as it prepares for continued customer activity across the Permian Basin.
The company reported second-quarter Adjusted EBITDA of $281 million, distributable cash flow of $195 million and free cash flow of $105 million. Senior Vice President and Chief Financial Officer Trevor Howard said Midstream Logistics Adjusted EBITDA rose 35% from a year earlier to $205 million, while Pipeline Transportation Adjusted EBITDA was $83 million.
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Processed natural gas volumes were 1.74 billion cubic feet per day during the quarter, flat from a year earlier despite an estimated 250 million cubic feet per day of Waha-price-related production curtailments. Howard said results benefited from operating performance, improved NGL recoveries and condensate yields, optimization efforts, and favorable commodity prices and spreads.
Guidance Raised on Volume, Commodity and Operating Expectations Kinetik increased its full-year 2026 Adjusted EBITDA forecast to $1.04 billion to $1.1 billion. At the midpoint, the revised outlook is 7% above the company’s original February forecast and represents approximately 15% year-over-year pro forma growth after accounting for the divestiture of its EPIC Crude interest, according to Howard.
Management identified four drivers for the revised outlook:
Improved volume expectations as Waha pricing normalized and curtailed production returned faster than anticipated. More favorable commodity-price assumptions, including nearly 30% higher WTI pricing and nearly 20% higher liquids pricing versus assumptions used in February guidance. Continued system operating improvements, including plant and compression runtimes, NGL recoveries and condensate yields. Outperformance in Pipeline Transportation, supported by basin activity, higher throughput and healthy pipeline margins. Kinetik now expects mid- to high-single-digit year-over-year volume growth in 2026, compared with its previous expectation for low- to mid-single-digit growth. The company anticipates average curtailments of roughly 25 million cubic feet per day during the second half, compared with the estimated 250 million cubic feet per day curtailed during the second quarter.
Howard said Kinetik expects to exit 2026 with processed gas volumes approaching 2.2 billion cubic feet per day, with no fourth-quarter curtailments assumed. He clarified during the question-and-answer session that the 2.2 Bcf/d figure represents a fourth-quarter average. Kinetik expects third-quarter Adjusted EBITDA of $260 million to $270 million and fourth-quarter Adjusted EBITDA of $270 million to $280 million.
Capacity Expansion and Downstream Market Access Welch said customer activity has continued to build across the company’s footprint, with more than 60% of the Permian rig-count growth since February occurring in the Delaware Basin. He said the recovery in Waha pricing from earlier dislocations reduced producer curtailments beginning in mid-June, while a more constructive crude-price environment supported producer development economics.
The company reached a final investment decision in May on Kings Landing 2, or KL2, and subsequently increased its planned processing capacity by 50% to 300 million cubic feet per day. Kinetik has purchased cryogenic processing, amine and residue compression equipment for the project and now expects it to enter service in mid-2028, earlier than previously communicated.
Once completed, KL2 is expected to lift Delaware North sour-gas processing capacity above 700 million cubic feet per day and take Kinetik’s systemwide processing capacity above 2.7 Bcf/d. The company also received board authorization to procure long-lead equipment for its next processing-capacity expansion and sanctioned work to expand the ECCC pipeline.
Management said it is evaluating interim offload options and optimization projects as volumes build ahead of KL2’s startup. Welch said the company is examining center-block rebuilds and other plant upgrades, while Chief Operating Officer Matt Wall said residue-compression upgrades and expander-center-section changes could add roughly 10% to 15% above nameplate capacity at cryogenic plants in Delaware South.
Kinetik also entered agreements for additional firm residue-gas access to Gulf Coast markets beginning in 2027, along with residue-gas and NGL transportation agreements supporting its Delaware North processing complexes. Welch said the agreements are intended to reduce customers’ exposure to volatile in-basin pricing and offer greater access to premium end markets.
Higher Capital Program Supports Customer Development Kinetik raised its 2026 capital expenditure guidance, including maintenance capital, to approximately $560 million. The increase includes spending on KL2, optimization initiatives, compression equipment, ECCC expansion right-of-way, long-lead equipment for a future cryogenic plant, and accelerated growth projects associated with customer development plans in late 2026 and early 2027.
Howard said much of the incremental 2026 development-related spending is tied to Delaware South, where new wells can be planned and connected more quickly than in New Mexico. He added that Kinetik is already planning for producer activity extending through 2028 and beyond.
Welch said Kinetik sees a “prudent paradigm” for capital investment given the returns available from infrastructure projects. Howard said capital expenditures could remain around current levels as long as customer forecasts support construction of roughly one cryogenic plant at a time.
Leverage, Dividend Coverage and Operations At the end of the quarter, Kinetik reported leverage of 3.8 times and liquidity exceeding $1 billion. Howard said the company expects leverage to decline by year-end despite its elevated capital program and remains within its target leverage range of 3.5 times to 4 times.
The company paid a second-quarter dividend of $0.81 per share in late July. Dividend coverage improved to approximately 1.5 times from 1.2 times for full-year 2025. Management reaffirmed its framework for annual dividend growth of 3% to 5% on a base-case basis, with the potential for growth in line with cash flow once coverage reaches 1.6 times or more.
Welch attributed operational outperformance partly to multiyear work on the acquired Durango system, including pipe and facility repairs, measurement improvements, reliability work and efforts to reduce fuel, loss and unaccounted-for volumes. Wall said the company expects system performance to plateau at improved levels rather than continue making large gains, though management does not expect performance to move backward.
Separately, Kinetik said the ECCC Pipeline has entered service, creating a north-to-south connection across the western part of its system between Eddy and Culberson counties. The company expects rich-gas volumes on the pipeline to rise through the rest of the year as Kings Landing reaches full utilization. Its Kings Landing acid-gas injection and sour-conversion project remains on track for first-phase service by year-end, while the 40-megawatt Diamond Volt behind-the-meter power project is expected to enter service in the second quarter of 2027.
About Kinetik (NYSE:KNTK)Kinetik NYSE: KNTK is a publicly listed midstream energy company focused on the development, operation and management of natural gas infrastructure across the United States. The company's core business activities include the gathering, compression, processing, storage and transportation of natural gas, serving producers, utilities and industrial consumers. By integrating a suite of midstream services under a single platform, Kinetik aims to provide efficient, cost-effective and reliable solutions across the natural gas value chain.
The company was established in 2021 when assets were acquired from Talen Energy by a subsidiary of ArcLight Capital Partners, forming a comprehensive portfolio of pipelines, compression facilities and underground storage assets.
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SummaryKinetik remains a quality midstream story, supported by strong assets, dividends, and the Kings Landing II FID catalyst.Q2 saw adjusted EBITDA rise to $280.8M and dividend coverage improve to 1.47x, but processed gas volumes stayed flat YoY.Kings Landing II FID increases long-term growth optionality, yet introduces capex and execution risks, with cash flow impact expected in 2028.I maintain a buy rating on KNTK, driven by dividend yield, though valuation appears fully priced and Waha-related volume risks persist. studio-fi/iStock via Getty Images
When the last time I covered Kinetik Holdings (KNTK), I really liked the company, but I could not call it a cheap one. Then it was, and I believe still is, a quality midstream story with good assets, strong dividends, buybacks, and a real Delaware
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Kinetik Holdings Inc. (KNTK) Q2 2026 Earnings Call August 6, 2026 9:00 AM EDT
Company Participants
Alex Durkee - Director of Investor Relations
Jamie Welch - President, CEO & Director
Trevor Howard - Senior VP & CFO
Matthew Wall - Executive VP & COO
Conference Call Participants
Spiro Dounis - Citigroup Inc., Research Division
Jeremy Tonet - JPMorgan Chase & Co, Research Division
Theresa Chen - Barclays Bank PLC, Research Division
Jacqueline Koletas - Goldman Sachs Group, Inc., Research Division
Keith Stanley - Wolfe Research, LLC
Presentation
Operator
Hello, everyone. Thank you for joining us, and welcome to the Kinetik's Second Quarter 2026 Results. [Operator Instructions]
I will now hand the conference over to Alex Durkee, Head of Investor Relations. Please go ahead.
Alex Durkee
Director of Investor Relations
Good morning, and welcome to Kinetik's Second Quarter 2026 Earnings Conference Call. Our speakers today are Jamie Welch, President and Chief Executive Officer; and Trevor Howard, Senior Vice President and Chief Financial Officer.
As a reminder, today's discussion will include forward-looking statements. Please refer to our SEC filings for a discussion of the risks that could cause actual results to differ materially. We will also reference certain non-GAAP financial measures. Reconciliations can be found in our earnings materials and on our website.
With that, I will turn the call over to Jamie.
Jamie Welch
President, CEO & Director
Thank you, Alex. Good morning, everyone. Kinetik delivered the strongest financial results in our history. Our performance was driven by exceptional operational execution, strong system performance and a supportive commodity price environment. I'm proud of our team whose focus, discipline and commitment to excellence continue to drive these results.
Accordingly, we are updating our full year 2026 adjusted EBITDA guidance upwards by $70 million at the midpoint or 7%, reflecting the strong first half performance and confidence in the outlook for
Kinetik Holdings Inc. (KNTK - Free Report) came out with quarterly earnings of $0.64 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +236.84%. A quarter ago, it was expected that this company would post earnings of $0.16 per share when it actually produced a loss of $0.07, delivering a surprise of -143.75%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
KINETIK HLDGS, which belongs to the Zacks Oil and Gas - Field Services industry, posted revenues of $581.44 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 37.95%. This compares to year-ago revenues of $426.74 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
KINETIK HLDGS shares have added about 35% since the beginning of the year versus the S&P 500's gain of 13%.
What's Next for KINETIK HLDGS?While KINETIK HLDGS has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for KINETIK HLDGS was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.30 on $509.24 million in revenues for the coming quarter and $0.81 on $1.92 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Field Services is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Drilling Tools International Corp. (DTI - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This company is expected to post quarterly loss of $0.04 per share in its upcoming report, which represents a year-over-year change of -100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Drilling Tools International Corp.'s revenues are expected to be $38.16 million, down 3.2% from the year-ago quarter.
HOUSTON & MIDLAND, Texas--(BUSINESS WIRE)--Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik” or the “Company”) today reported record results for the quarter ended June 30, 2026 and increased its full year 2026 Adjusted EBITDA1 guidance. Kinetik reported net income including noncontrolling interest of $123.1 million and $118.0 million for the three and six months ended June 30, 2026, respectively. Kinetik generated Adjusted EBITDA1 of $280.8 million and $532.0 million, Distributable Cash Flow1 of $1.
HOUSTON & MIDLAND, Texas--(BUSINESS WIRE)--Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik” or the “Company”) today published its 2025 Sustainability Report (the “Report”), highlighting its sustainability initiatives, goals, and progress throughout 2025. The Report provides a transparent and comprehensive overview of Kinetik's progress towards a more reliable, efficient, and sustainable energy future. An electronic version of the Report can be accessed on the Sustainability section of Kinetik's we.
Kinetik Holdings Inc. (KNTK - Free Report) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of -48.5%.
Revenues are expected to be $406.79 million, down 4.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.15% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for KINETIK HLDGS?For KINETIK HLDGS, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -17.17%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that KINETIK HLDGS will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that KINETIK HLDGS would post earnings of $0.16 per share when it actually produced a loss of -$0.07, delivering a surprise of -143.75%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
KINETIK HLDGS doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerTetra Technologies (TTI - Free Report) , another stock in the Zacks Oil and Gas - Field Services industry, is expected to report earnings per share of $0.09 for the quarter ended June 2026. This estimate points to no change from the year-ago quarter. Revenues for the quarter are expected to be $178.7 million, up 2.8% from the year-ago quarter.
The consensus EPS estimate for Tetra Technologies has been revised 10.5% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -5.88%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Tetra Technologies will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
HOUSTON & MIDLAND, Texas--(BUSINESS WIRE)--Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik” or the “Company”) has declared a cash dividend of $0.81 per share, or $3.24 per share on an annualized basis. The announced quarterly dividend will be paid on Friday, July 31, 2026 to shareholders of record as of market close on Friday, July 24, 2026.
Kinetik will host its second quarter 2026 results conference call on Thursday, August 6, 2026 at 8:00 am Central Time (9:00 am Eastern Time). The Company will issue its earnings release after market close on Wednesday, August 5, 2026. The text of the earnings release, the accompanying presentation and link to the live webcast will be available on the Company’s website at www.ir.kinetik.com. A replay of the conference call will be available on the website following the call.
Kinetik previously implemented a Dividend Reinvestment Plan (the “DRIP” or the “Plan”) open to all shareholders. A complete description of the Plan is included in the Company’s Form S-3 registration statement filed with the SEC on July 12, 2024 and is posted on the Company’s website at www.kinetik.com.
To participate, shareholders of record may register online by visiting the Broadridge website at shareholder.broadridge.com/KNTK or by contacting Broadridge Corporate Issuers, LLC, the Plan Administrator, by telephone toll free from inside the United States at 1-(877)-830-4936 or outside of the United States at 1-(720)-378-5591. Shareholders may also contact the Plan Administrator in writing at Broadridge Shareholder Services, Broadridge Corporate Issuer Solutions, LLC, PO Box 1342, Brentwood, NY 11717-0718. Please include a reference to Kinetik Holdings Inc. in all correspondence. Shareholders who own common stock through a broker should consult their broker regarding participation in the Plan.
About Kinetik Holdings Inc.
Kinetik is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation operating in the Delaware Basin. Kinetik is headquartered in Houston and Midland, Texas. Kinetik provides comprehensive gathering, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water. Kinetik posts announcements, operational updates, investor information and press releases on its website, www.kinetik.com.
HOUSTON & MIDLAND, Texas--(BUSINESS WIRE)--Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik” or the “Company”) today announced the appointment of Craig Harris to the Kinetik Board of Directors, effective June 23, 2026.
Craig Harris has more than 30 years of experience in the energy industry, with a background spanning engineering, operations, business development, and corporate strategy. From October 2022 to March 2026, Mr. Harris was a Senior Managing Director within Blackstone’s credit business. Prior to that, he held senior leadership roles at 3Bear Energy, Enable Midstream Partners, Columbia Midstream Group, and El Paso Corporation. Mr. Harris holds a Bachelor of Science degree in Mechanical Engineering from Tennessee Technological University and a Master of Science degree in Mechanical Engineering from Vanderbilt University.
“We are pleased to welcome Craig to our Board of Directors,” said Jamie Welch, President & CEO of Kinetik. “His extensive experience in the midstream industry, combined with his proven leadership and strategic perspective, will strengthen our Board. We look forward to benefiting from his insights as we continue to advance Kinetik’s growth and value creation objectives.”
“I am honored to join Kinetik’s Board of Directors. I have a strong appreciation for Kinetik’s integrated platform and strategic positioning, and I look forward to contributing to the Company’s continued execution and long-term value creation,” commented Craig Harris.
About Kinetik Holdings Inc.
Kinetik is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation operating in the Delaware Basin. Kinetik is headquartered in Houston and Midland, Texas. Kinetik provides comprehensive gathering, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water. Kinetik posts announcements, operational updates, investor information and press releases on its website, www.kinetik.com.
The Federal Reserve indicated the possibility of a rate hike this year after its latest meeting, which could have implications for income-seeking investors.
Given this backdrop, dividend-paying stocks with strong yields and upside potential could help investors earn attractive returns.
Backed by solid research, top Wall Street analysts can provide key insights to pick stocks having the ability to generate compelling capital appreciation and pay consistent dividends, driven by solid fundamentals.
Here are three dividend-paying stocks that are highlighted by Wall Street's top pros, as tracked by TipRanks, a platform that ranks analysts based on their past performance.
Kinetik HoldingsKinetik is a midstream company operating in the Delaware basin. With a quarterly dividend of 81 cents per share (annualized dividend of $3.24 per share), KNTK stock offers a dividend yield of about 7%.
RBC Capital analyst Elvira Scotto reiterated a buy rating on Kinetik stock and increased her price target to $53 from $50, citing expected growth from the KL2 project and sour gas opportunity in New Mexico. Scotto updated her estimates to reflect Kinetik's Q1 2026 results, with adjusted EBITDA beating estimates, driven by improved margins and Gulf Coast marketing gains that offset Waha price-related shut-ins.
The five-star analyst expects the Waha price-related shut-ins to persist until incremental takeaway capacity comes online later this year. Scotto said that Kinetik is well-positioned to capture New Mexico sour gas growth prospects when prices support activity. She sees the Northern Delaware Basin in New Mexico as a major growth opportunity for Kinetik. Scotto highlighted that Kinetik has purpose-built its system for sour gas handling, giving it an edge over new competitors that may face permitting delays of at least three years to build acid gas injection wells.
Additionally, Scotto pointed out Kinetik's attractive capital return framework, which targets a 3.5x to 4.0x leverage ratio, 3% to 5% hike in annual dividend until dividend coverage reaches 1.6x, and opportunistic share buybacks.
"We still view KNTK as a logical takeout candidate for buyers seeking to increase equity NGL barrels and sour gas processing," said Scotto.
Scotto ranks No. 211 among more than 12,300 analysts tracked by TipRanks. Her ratings have been successful 68% of the time, delivering an average return of 16%. See Kinetik Financials on TipRanks.
SLBOilfield services company SLB (SLB), formerly known as Schlumberger, is this week's second dividend pick. The company announced a quarterly cash dividend of nearly 30 cents per share, payable on July 9. At an annualized dividend of $1.18 per share, SLB stock offers a dividend yield of 2.5%.
Recently, Goldman Sachs analyst Neil Mehta reiterated a buy rating on SLB stock with a price target of $63, saying that he believes the company is "positioned to capitalize on long-term opportunities in oilfield activity globally triggered by the ongoing disruptions and shifting supply dynamics in the Middle East."
The five-star analyst expects SLB's dominant position in the international oilfield services market to bolster its earnings power over the long term, supported by increased activity levels over the medium to long term.
Given management's commentary on accelerated exploration activity in regions such as Latin America, Africa and Asia, and his expectation for accelerated final investment decisions in deepwater projects in West Africa, the Gulf of America and Brazil, Mehta expects SLB to benefit from higher services activity needed amid increasing drilling and production.
Furthermore, Mehta expects portfolio diversification from the Digital business and data center growth to drive higher earnings over the long term. Notably, the analyst expects SLB to deliver margins of about 40% in the Digital business this year, with further expansion in the years ahead.
Mehta ranks No. 626 among more than 12,300 analysts tracked by TipRanks. His ratings have been successful 60% of the time, delivering an average return of 10.7%. See SLB AI Stock Analysis on TipRanks.
IBMFinally, moving on to tech giant IBM (IBM). The company is increasingly focusing on quantum computing and artificial intelligence to drive future growth. At a quarterly dividend of $1.69 per share, IBM stock offers a dividend yield of 2.7%.
Following a fireside chat with Ric Lewis, senior vice president of infrastructure at IBM, Bank of America analyst Wamsi Mohan reaffirmed a buy rating on IBM stock and increased his price target to $315 from $300.
The five-star analyst noted that Lewis views IBM Infrastructure as an increasingly less cyclical and more structurally advantaged business, with AI driving additional demand across the entire technology stack rather than only in graphics processing units.
Mohan added that AI tailwinds are most evident in IBM's Z mainframe offering, where program-to-program growth has increased from 110% several generations ago to the range of 120% to 125% in the prior cycle and roughly 135% for Z17. This acceleration is driven by AI workloads moving beyond fraud detection into inferencing areas like insurance, actuarial modeling, and transaction-level intelligence.
The analyst noted that IBM is benefiting from customers upgrading their systems and increased revenue from higher-value workloads from its existing customer base. Mohan also noted other positives like AI-led demand in IBM's storage business and the quantum roadmap.
"Overall, the fireside reinforced that IBM's Infrastructure business is positioned to compound through a combination of accelerating Z demand, AI-driven workload expansion, storage strength, and better monetization across a differentiated full-stack architecture," said Mohan.
Mohan ranks No. 21 among more than 12,300 analysts tracked by TipRanks. His ratings have been successful 65% of the time, delivering an average return of 52.6%. See IBM Insider Trading Activity on TipRanks.
Mammoth Energy Services (NASDAQ: TUSK - Get Free Report) and Kinetik (NYSE: KNTK - Get Free Report) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability. Analyst Recommendations This is a breakdown of current
Kinetik Holdings(KNTK +1.07%)delivers midstream infrastructure and services to oil and gas producers in the Texas Delaware Basin.
Zimmer Partners, LP disclosed a new stake in Kinetik Holdings in a February 17, 2026, SEC filing, acquiring 2,735,400 shares in the fourth quarter. The estimated transaction value is $98.61 million, based on quarterly average pricing.
What happenedAccording to a recent SEC filing dated February 17, 2026, Zimmer Partners, LP reported acquiring 2,735,400 shares of Kinetik Holdings during the fourth quarter. The estimated transaction value was $98.61 million, based on the quarter's average share price. The quarter-end position value also increased by $98.61 million, reflecting both share purchases and any price movement during the reporting period.
What else to knowThis was a new position for Zimmer Partners, LP, representing 2.6% of its $3.80 billion in 13F reportable AUM as of Dec. 31, 2025.
Top holdings after the filing:
NYSE:ES: $258.82 million (6.8% of AUM)NYSE:WELL: $207.28 million (5.5% of AUM)NASDAQ:XEL: $202.33 million (5.3% of AUM)NYSE:NI: $161.62 million (4.3% of AUM)NYSE:KGS: $159.76 million (4.2% of AUM)Company OverviewMetricValuePrice (as of market close 3/20/26)$45.93Market Capitalization$2.97 billionRevenue (TTM)$1.74 billionDividend Yield7.07%Company SnapshotProvides midstream services including gathering, transportation, compression, processing, and treating of natural gas, natural gas liquids, crude oil, and water.Operates midstream infrastructure in the Texas Delaware Basin, providing services to companies that produce natural gas, natural gas liquids, crude oil, and water.Provides services to companies that produce natural gas, natural gas liquids, crude oil, and water in the Texas Delaware Basin.Kinetik Holdings is a leading midstream energy company with a significant presence in the Texas Delaware Basin, serving as a critical infrastructure provider for the region's oil and gas producers. The company leverages its integrated asset base and long-term customer contracts to maintain stable cash flows and a competitive dividend yield. Its strategic focus on essential midstream services positions it as a key partner for upstream operators seeking reliable transportation and processing solutions.
What this transaction means for investorsZimmer Partners, a New York-based investment firm, recently disclosed a fourth-quarter (the three months ending on Dec. 31, 2025) purchase of nearly $99 million worth of Kinetik Holdings, an energy stock. Here are some key takeaways for investors.
Kinetik is a midstream energy company. It provides the intermediary processes that help turn raw natural gas and crude oil into the fuels that end consumers use to power vehicles, factories, and homes.
Recent reports suggest Kinetik could be a takeover target. According to reports, Kinetik is considering a sale to Western Midstream. Shares of Kinetik are up 27% year to date.
The recent spike in energy prices may have many retail investors pondering energy stocks. One way to gain exposure to the sector is through a diversified exchange-traded fund (ETF). The State Street Energy Select Sector SPDR ETF(XLE +0.99%), for example, offers broad-based exposure and charges only 0.08% in fees.
Chickasaw Capital Management LLC grew its position in Kinetik Holdings Inc. (NYSE: KNTK) by 3.6% during the undefined quarter, according to the company in its most recent disclosure with the SEC. The firm owned 1,137,460 shares of the company's stock after purchasing an additional 39,013 shares during the period. Kinetik comprises about 1.7%
Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investment spectrum and is likely to do so for years to come. Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue and ranks 32nd on the Fortune 500 list of the largest U.S. corporations by total revenue. The Wall Street white-glove giant offers financing, advisory services, risk distribution, and hedging for the firm’s institutional and corporate clients. In addition, it provides advice, investing, and execution for institutions and individuals across public and private markets. At 24/7 Wall St., we have followed the company’s research for 15 years to bring our readers top stock ideas.
With war raging in the Middle East and oil prices soaring, we were eager to see Goldman Sachs’ top picks across a wide range of energy subsectors. Five top companies are strong buys, and all make sense for investors looking to add energy now and also willing to add solid companies for long-term sector strength. The top energy picks at Goldman Sachs range from a large-cap exploration and production giant to midstream leaders with rich dividends to energy services leaders that offer incredible value now. Obviously, all are rated Buy and have solid upside to their individual price targets.
The Goldman Sachs research team noted this:
Amid heightened geopolitical volatility, investors are looking for stocks with compelling valuations based on mid-cycle prices, recognizing that further upside could emerge if commodity prices remain strong. This week in the Pulse, we ask our senior analyst team what they estimate stocks in their coverage are currently discounting in terms of either a mid-cycle commodity price or a normalized return. Teams discuss what they see the market currently pricing in and highlight stocks they view as undervalued in the current market environment.
Why we recommend Goldman Sachs stocks
Goldman Sachs Research ranks among the best for its unmatched breadth—covering over 3,000 securities, 45+ economies, and all major markets—and rigorous, data-driven analysis. The team delivers thousands of proprietary forecasts, models, and unique indicators, backed by top-tier global analysts and innovative thought leadership on macro, industries, and trends, earning consistent recognition as a trusted resource for institutional investors and high-net-worth investors.
ConocoPhillips The big always gets bigger, and ConocoPhillips (NYSE: COP | COP Price Prediction) completed a $22.5 billion purchase of Marathon Oil this time last year. This deal added high-quality assets, particularly in the Eagle Ford and Bakken shales, to the company’s portfolio. This exploration and production company offers a solid dividend yield of 2.39%.
Goldman Sachs said this in the research report:
We estimate that ConocoPhillips, on the US Conviction List, is currently discounting a mid-cycle Brent price of around $73/b in 2027-2028. On this basis, it stands out as an undervalued name in our Integrated Oils coverage. We find the company poised to achieve a 20-25% free cash flow per share CAGR through 2030, with growth underpinned by four major projects.
Its Alaska segment primarily explores for, produces, transports, and markets crude oil, natural gas, and natural gas liquids (NGLs). The Lower 48 segment comprises operations in the 48 contiguous states of the United States and the Gulf of America. In contrast, Canadian operations consist of the Surmont oil sands development in Alberta, the liquids-rich Montney unconventional play in British Columbia, and commercial operations.
The Europe, Middle East, and North Africa segment consists of operations principally located in:
The Norwegian sector of the North Sea The Norwegian Sea Qatar Libya Equatorial Guinea Commercial and terminalling operations in the United Kingdom The Asia Pacific segment has exploration and production operations in China, Malaysia, and Australia, as well as commercial operations in China, Singapore, and Japan. The Other International segment includes interests in Colombia as well as contingencies associated with prior operations in other countries.
The Goldman Sachs target price is $144.
Halliburton This is one of the leaders in the energy services sector, paying a 1.75% dividend and offering solid upside from current levels. Halliburton (NYSE: HAL) is a provider of products and services to the energy industry and operates through two segments: Completion and Production, and Drilling and Evaluation.
The Goldman Sachs analysts noted this:
We continue to highlight Halliburton for balanced exposure across international and North America activity markets, as well as additional value through the company’s partnership and equity stake in VoltaGrid, which offers exposure to the Behind-the-Meter theme.
The Completion and Production delivers cementing, stimulation, specialty chemicals, intervention, pressure control, artificial lift, and completion products and services. The segment consists of:
Artificial Lift Cementing Completion Tools Pipeline and Process Services Production Enhancement Production Solutions The Drilling and Evaluation segment provides field and reservoir modeling, drilling, fluids, evaluation, and precise wellbore placement solutions that enable customers to model, measure, drill, and optimize their construction activities. Its product service lines include:
Baroid Drill bits and services Halliburton project management Landmark software and services Sperry drilling Testing Subsea Wireline Perforating Goldman Sachs has a $44 target price for the shares.
Kinetik While well off the radar of many investors, this midstream leader has huge total return potential and pays a solid 6.48% dividend. Kinetik (NYSE: KNTK) is an integrated Permian-to-Gulf Coast midstream company operating in the Delaware Basin. It offers comprehensive gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil, and water.
Goldman Sachs said this about the company:
The balance of our coverage, which is more oil/liquids-focused, is also trading above mid-cycle: ~10.1x 2027, or ~0.5-1.0x above what we would consider typical. We believe this reflects increasing investor expectations that midstream companies can capture higher marketing gains from commodity price volatility (similar to 2022-23) in the near-term, and that elevated commodity prices could drive higher US production and thus higher midstream throughout growth over the medium- to long-term.
Its segments include Midstream Logistics and Pipeline Transportation.
The Midstream Logistics segment provides gas gathering and processing services with over 3,900 miles of low and high-pressure steel pipeline located throughout the Delaware Basin, including over 2,300 miles of gas pipeline. It operates under three streams:
Gas gathering and processing Crude oil gathering, stabilization, and storage services Produced water gathering and disposal The Pipeline Transportation segment consists of equity investment interests in three Permian Basin pipelines that access various points along the United States Gulf Coast, Kinetik NGL Pipeline, and Delaware Link Pipeline.
The Goldman Sachs target price is $49.
Ovintiv While likely off the radar for many, this is another solid value energy idea with a 1.93% dividend. Ovintiv (NYSE: OVV) is an oil and natural gas exploration and production company focused on developing its multi-basin portfolio of assets in the United States and Canada.
Goldman Sachs analysts noted this:
We reiterate our Buy rating on OVV with an increased price target and view OVV as an incrementally attractive oily E&P equity given the uplift from higher commodity prices, which should drive excess FCF generation versus prior expectations, allowing OVV to continue reducing the company’s net debt while supporting share repurchases that could further close the valuation dislocation of the stock relative to oily E&P peers.
Its operations include the marketing of oil, natural gas, and NGLs. Its USA Operations segment includes the exploration for, development of, and production and marketing of oil, NGLs, natural gas, and other related activities within the United States. The Canadian Operations segment includes the same activities within Canada.
The company has assets in:
Anadarko Basin, a liquids-rich play located in west-central Oklahoma, spanning Blaine, Canadian, Custer, Dewey, Garvin, Grady, Kingfisher, McClain, and Stephens counties. Montney Basin, a condensate and natural gas play located in northwest Alberta and northeast British Columbia. Permian Basin, the largest, most prolific oil-and-gas-producing region in the United States, is located in West Texas and southeastern New Mexico. The Goldman Sachs target price is $66.
SLB Formerly known as Schlumberger, SLB (NYSE: SLB) is another industry giant that pays a 2.18% dividend. The analysts said this about the company in the report:
We anticipate SLB to experience the highest rate of change after the end of the supply disruption, as the company is one of the most exposed to the region.
The global technology company that operates in four segments:
Digital & Integration combines its digital solutions and data products with its integrated Asset Performance Solutions (APS) offering. Reservoir Performance comprises reservoir-centric technologies and services that optimize reservoir productivity and performance. Well Construction combines the full portfolio of products and services to optimize well placement and performance, maximize drilling efficiency, and improve wellbore assurance. The segment provides services and products to operators and drilling rig manufacturers for well design and construction. Production Systems develops technologies and provides knowledge that enhances production and recovery from subsurface reservoirs to the surface, into pipelines, and to refineries. Goldman Sachs’ $60 target price is almost 12% above current levels.
HOUSTON & MIDLAND, Texas--(BUSINESS WIRE)--Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik” or the “Company”) has declared a cash dividend of $0.81 per share, or $3.24 per share on an annualized basis. The announced quarterly dividend will be paid on Friday, May 1, 2026 to shareholders of record as of market close on Friday, April 24, 2026.
Kinetik will host its first quarter 2026 results conference call on Thursday, May 7, 2026 at 8:00 am Central Time (9:00 am Eastern Time). The Company will issue its earnings release after market close on Wednesday, May 6, 2026. The text of the earnings release, the accompanying presentation and link to the live webcast will be available on the Company’s website at www.ir.kinetik.com. A replay of the conference call will be available on the website following the call.
Kinetik previously implemented a Dividend Reinvestment Plan (the “DRIP” or the “Plan”) open to all shareholders. A complete description of the Plan is included in the Company’s Form S-3 registration statement filed with the SEC on July 12, 2024 and is posted on the Company’s website at www.kinetik.com.
To participate, shareholders of record may register online by visiting the Broadridge website at shareholder.broadridge.com/KNTK or by contacting Broadridge Corporate Issuers, LLC, the Plan Administrator, by telephone toll free from inside the United States at 1-(877)-830-4936 or outside of the United States at 1-(720)-378-5591. Shareholders may also contact the Plan Administrator in writing at Broadridge Shareholder Services, Broadridge Corporate Issuer Solutions, LLC, PO Box 1342, Brentwood, NY 11717-0718. Please include a reference to Kinetik Holdings Inc. in all correspondence. Shareholders who own common stock through a broker should consult their broker regarding participation in the Plan.
About Kinetik Holdings Inc.
Kinetik is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation operating in the Delaware Basin. Kinetik is headquartered in Houston and Midland, Texas. Kinetik provides comprehensive gathering, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water. Kinetik posts announcements, operational updates, investor information and press releases on its website, www.kinetik.com.
Eagle Global Advisors LLC grew its holdings in shares of Kinetik Holdings Inc. (NYSE:KNTK – Free Report) by 48.7% during the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 668,961 shares of the company’s stock after buying an additional 218,981 shares during the period. Kinetik makes up 0.9% of Eagle Global Advisors LLC’s investment portfolio, making the stock its 26th largest holding. Eagle Global Advisors LLC owned about 0.41% of Kinetik worth $24,116,000 as of its most recent SEC filing.
Other institutional investors and hedge funds have also recently modified their holdings of the company. CWM LLC boosted its holdings in shares of Kinetik by 89.8% during the 4th quarter. CWM LLC now owns 744 shares of the company’s stock worth $27,000 after buying an additional 352 shares in the last quarter. Signaturefd LLC boosted its holdings in shares of Kinetik by 101.5% during the 4th quarter. Signaturefd LLC now owns 802 shares of the company’s stock worth $29,000 after buying an additional 404 shares in the last quarter. Aster Capital Management DIFC Ltd bought a new position in shares of Kinetik during the 3rd quarter worth approximately $54,000. Advisory Services Network LLC bought a new position in shares of Kinetik during the 3rd quarter worth approximately $55,000. Finally, GAMMA Investing LLC raised its position in shares of Kinetik by 569.6% during the fourth quarter. GAMMA Investing LLC now owns 1,761 shares of the company’s stock worth $63,000 after purchasing an additional 1,498 shares during the period. 21.11% of the stock is currently owned by institutional investors.
Analyst Ratings Changes A number of brokerages have recently weighed in on KNTK. Citigroup upped their target price on Kinetik from $46.00 to $51.00 and gave the stock a “buy” rating in a research report on Monday, March 2nd. UBS Group lowered their target price on Kinetik from $49.00 to $48.00 and set a “neutral” rating on the stock in a research report on Monday, March 16th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Kinetik in a research report on Thursday, January 22nd. Wolfe Research lowered Kinetik from an “outperform” rating to a “peer perform” rating in a research report on Tuesday, January 27th. Finally, Zacks Research raised Kinetik from a “strong sell” rating to a “hold” rating in a research report on Thursday, March 26th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $48.08.
Check Out Our Latest Stock Report on KNTK
Insider Buying and Selling In related news, insider Trevor Howard sold 1,619 shares of the stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $46.92, for a total value of $75,963.48. Following the completion of the sale, the insider directly owned 249,795 shares of the company’s stock, valued at approximately $11,720,381.40. This represents a 0.64% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Matthew Wall sold 3,222 shares of the stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $46.92, for a total value of $151,176.24. Following the completion of the sale, the insider directly owned 585,556 shares of the company’s stock, valued at $27,474,287.52. The trade was a 0.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 4,007,748 shares of company stock valued at $179,763,536. 3.83% of the stock is owned by corporate insiders.
Kinetik Stock Up 0.5% Shares of NYSE:KNTK opened at $46.75 on Wednesday. The firm has a market capitalization of $7.58 billion, a price-to-earnings ratio of 18.19, a PEG ratio of 1.53 and a beta of 0.66. The stock’s 50 day moving average is $45.71 and its 200-day moving average is $39.97. Kinetik Holdings Inc. has a twelve month low of $31.33 and a twelve month high of $49.55.
Kinetik (NYSE:KNTK – Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported $2.16 EPS for the quarter, beating analysts’ consensus estimates of $0.15 by $2.01. The business had revenue of $430.42 million during the quarter. Kinetik had a negative return on equity of 32.70% and a net margin of 29.23%.The company’s quarterly revenue was up 11.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.01 earnings per share. Equities research analysts anticipate that Kinetik Holdings Inc. will post 0.98 earnings per share for the current fiscal year.
Kinetik Profile (Free Report)
Kinetik (NYSE: KNTK) is a publicly listed midstream energy company focused on the development, operation and management of natural gas infrastructure across the United States. The company’s core business activities include the gathering, compression, processing, storage and transportation of natural gas, serving producers, utilities and industrial consumers. By integrating a suite of midstream services under a single platform, Kinetik aims to provide efficient, cost-effective and reliable solutions across the natural gas value chain.
The company was established in 2021 when assets were acquired from Talen Energy by a subsidiary of ArcLight Capital Partners, forming a comprehensive portfolio of pipelines, compression facilities and underground storage assets.
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HOUSTON & MIDLAND, Texas--(BUSINESS WIRE)--Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik” or the “Company”) today reported financial results for the quarter ended March 31, 2026.
For the three months ended March 31, 2026, Kinetik reported net loss including noncontrolling interest of $5.1 million, Adjusted EBITDA1 of $251.2 million, Distributable Cash Flow1 of $180.8 million, and Free Cash Flow1 of $101.4 million.
Highlights
Delivered record first quarter 2026 financial results, driven by strong execution across the Company Amended multiple Durango gas gathering and processing agreements with a large existing customer, extending contract terms to 2039 and increasing the original dedicated acreage position in New Mexico Executed several new agreements with customers in Texas and New Mexico for gas, water, and crude midstream services Received approvals from the Bureau of Land Management and the New Mexico Oil Conservation Division to fully proceed with the acid gas injection and sour conversion project at Kings Landing with expected in-service by year-end 2026 Secured additional Gulf Coast pricing for 2028 through 2030 that further mitigates Waha natural gas exposure Affirming full year 2026 Financial Guidance: Adjusted EBITDA1 guidance of $950 million to $1,050 million Capital Expenditures2 guidance of $450 million to $510 million (including maintenance) CEO Commentary
“Kinetik delivered a strong start to 2026, reflecting the strategic positioning of the business, as well as successful commercial and operational execution,” said Jamie Welch, Kinetik’s President & Chief Executive Officer. “Accounting for the divestiture of our stake in EPIC Crude Holdings LP (“EPIC Crude”), first quarter 2026 Adjusted EBITDA1 of $251 million represents a new quarterly record for the Company. Our financial performance was above internal expectations and reinforces our confidence in our 2026 guidance.”
“While geopolitical tensions in the Middle East have introduced near-term commodity price volatility, Kinetik's fee-based, domestic midstream business model provides meaningful insulation. Elevated crude prices continue to support our oil-weighted customers’ well economics, while gas price-sensitive customers have deferred some 2026 activity in response to negative Waha pricing; so on balance, we have not observed a material impact to producer activity levels for 2026 across our footprint. However, when looking ahead, we have seen and are continuing to see customers pull forward activity to early 2027, setting up for a strong year that coincides with new Permian egress capacity coming online.”
Welch added, “Year to date through April, the Waha Hub is even more oversupplied and volatile than our original expectations with Waha gas daily averaging negative $2.37 per Mmbtu. We continue to experience price-related volume curtailments from our gas price-sensitive customers. While we are revising our 2026 processed gas volume growth assumptions to reflect these dynamics, our Gulf Coast transportation position more than offsets this impact by capitalizing on wider Permian to Gulf Coast price differentials. The scale and pace of incremental residue gas takeaway capacity from the Permian Basin continues to reshape the long‑term outlook with more than 5 Bcf/d of new capacity expected to be in service by early 2027 and an additional approximately 6 Bcf/d anticipated in 2028 and 2029.”
“Against this backdrop, Kinetik is well positioned to capture the value of this structural Permian gas growth. The Durango amendments executed over the last four months, which extend roughly 75% of legacy volumes into the mid and late 2030s, the new agreements across Texas and New Mexico, and the incremental Gulf Coast natural gas pricing exposure through 2030 demonstrate our commercial strategy translating into multi-year earnings visibility.”
Financial Highlights
Three months ended March 31, 2026
(In thousands, except ratios)
Net loss including noncontrolling interest
$
(5,125)
Adjusted EBITDA1
$
251,200
Midstream Logistics Adjusted EBITDA1
$
178,921
Pipeline Transportation Adjusted EBITDA1
$
77,977
Corporate and Other Adjusted EBITDA1
$
(5,698)
Distributable Cash Flow1
$
180,831
Dividend Coverage Ratio1,3
1.4x
Capital Expenditures2
$
91,333
Free Cash Flow1
$
101,381
Net Debt1,4
$
3,854,380
Liquidity (Cash and Revolver Availability)5
$
1,120,120
Leverage Ratio1,6
3.9x
Net Debt to Adjusted EBITDA Ratio1,7
3.9x
Common stock issued and outstanding8
162,360
Dividend per share of issued and outstanding common stock
$
0.81
Segment Insights
The Midstream Logistics segment generated Adjusted EBITDA1 of $178.9 million, a 12% increase year-over-year. For the three months ended March 31, 2026, Kinetik processed natural gas volumes of 1.81 Bcf/d, a 1% increase year-over-year despite an estimated 170 Mmcf/d of Waha price-related processed gas volume shut-ins. First quarter 2026 results benefited from stronger than expected system operating performance, higher fee and commodity margins, lower unit operating costs, and wider Waha to Houston Ship Channel basis spreads, partially offset by Waha price-related production shut-ins.
The Pipeline Transportation segment generated Adjusted EBITDA1 of $78.0 million, a nearly 17% decrease year-over-year driven by the Company’s divestiture of its equity interest in EPIC Crude. Permian Highway Pipeline and Kinetik NGL Adjusted EBITDA1 grew modestly year-over-year on lower fuel costs and higher fee gross margin.
2026 Guidance Affirmed
Kinetik affirms full year 2026 Adjusted EBITDA1 guidance to be between $950 million and $1,050 million. Year-over-year processed gas volume is now estimated to grow low- to mid-single-digit percentage points. Original processed gas volume assumptions contemplated approximately 100 Mmcf/d of Waha price-related production shut-ins on average for the full year. The Company now estimates approximately 220 Mmcf/d of curtailments and additional 2026 timing adjustments to certain producer developments.
Kinetik is also maintaining its 2026 Capital Expenditures2 guidance (including maintenance) of $450 million to $510 million for the full year.
Strategic Projects & Commercial Activity
Kinetik received all approvals from the Bureau of Land Management to proceed with acid gas compression at the surface facilities and drilling of the acid gas injection well at Kings Landing, as well as the underground injection control permit from the New Mexico Oil Conservation Division for the full 20 Mmcf/d of requested total acid gas capacity. The project will enable Kings Landing to handle elevated levels of H₂S and CO₂ and remains on schedule for in-service by year-end 2026.
The ECCC Pipeline is nearing construction completion, which will connect the western portion of Kinetik’s system North to South between Eddy and Culberson counties. The project will commence in-service during the second quarter of 2026.
Kinetik continues to advance its strategy of pursuing scalable power solutions across its Delaware South position. The 40 MW behind-the-meter power generation project at Diamond Cryo is progressing with engineering, procurement, and permitting work well underway.
The Company executed an agreement with Pecos Power to connect its owned and operated intrabasin residue gas pipeline to the new 452 MW gas-fired Pecos Power Plant in Reeves County, Texas. This interconnection will be used as one of the primary sources of residue natural gas supply for the project. Pecos Power reached FID in March with commercial operations expected to commence in 2027, and the capital for the Kinetik pipeline connection will be fully reimbursed by Pecos Power.
Kinetik recently executed a series of commercial agreements that further enhance long‑term visibility across the system in Texas and New Mexico, several of which are for multi-stream services.
The Company also amended multiple legacy Durango gas gathering and processing (“G&P”) agreements with a large existing customer in New Mexico. This amendment increases acreage under the existing agreement by 12,000 gross acres, up approximately 25% versus the original dedicated acreage in Eddy County from May 2024 and extends contract terms to 2039.
In total, agreements covering approximately 75% of legacy Durango gas processed volumes have been amended in the last four months, extending terms to the mid and late 2030s, providing downstream control of plant products, increasing margin and dedicated acreage, and adding sour gas-related services. These agreements are expected to increase annual Adjusted EBITDA1 starting in 2026, which is reflected in guidance.
Kinetik secured additional Gulf Coast natural gas pricing exposure at attractive rates for the 2028 through 2030 period, building upon its downstream residue position and the continued successful execution of its commercial G&P strategy.
Conference Call & Webcast
Kinetik will host its first quarter 2026 results conference call on Thursday, May 7, 2026, at 8:00 am Central Time (9:00 am Eastern Time). To access a live webcast of the conference call, please visit the Investors section of Kinetik’s website at www.ir.kinetik.com. A replay of the conference call will be available on the website following the call.
Investor Presentation
An updated investor presentation will be available under Events and Presentations in the Investors section of the Company’s website at www.ir.kinetik.com. Information on the Company’s website does not constitute a portion of, and is not incorporated by reference into, this press release.
About Kinetik Holdings Inc.
Kinetik is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation operating in the Delaware Basin. Kinetik is headquartered in Houston and Midland, Texas. Kinetik provides comprehensive gathering, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water. Kinetik posts announcements, operational updates, investor information and press releases on its website, www.kinetik.com.
Forward-looking statements
This news release includes certain statements that may constitute “forward-looking statements” for purposes of the federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts, outlooks, guidance or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “seeks,” “possible,” “potential,” “predict,” “project,” “prospects,” “guidance,” “outlook,” “should,” “would,” “will,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about the Company’s future business strategy and plans, expectations, and objectives for the Company’s operations, including statements about strategy, synergies, technology adoption, portfolio monetization opportunities, growth, expansion, cost reduction and other capital projects and the timing and cost thereof, future operations, financial guidance, growth opportunities, the amount and timing of future shareholder returns, the Company’s projected dividend amounts and the timing thereof, and the Company’s targeted leverage and financial profile. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 26, 2026. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future development, or otherwise, except as may be required by law.
Additional information
Additional information follows, including a reconciliation of Adjusted EBITDA, Distributable Cash Flow, Free Cash Flow, and Net Debt (non-GAAP financial measures) to the GAAP measures.
Non-GAAP financial measures
Kinetik’s financial information includes information prepared in conformity with generally accepted accounting principles (GAAP) as well as non-GAAP financial information. It is management’s intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP. Adjusted EBITDA, Distributable Cash Flow, Free Cash Flow, Dividend Coverage Ratio, Net Debt and Leverage Ratio are non-GAAP measures. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated. See “Reconciliation of GAAP to Non-GAAP Measures” elsewhere in this news release. This news release also includes certain forward-looking non-GAAP financial information. Reconciliations of these forward-looking non-GAAP measures to their most directly comparable GAAP measure are not available without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various reconciling items that would impact the most directly comparable forward-looking GAAP financial measure, that have not yet occurred, are out of Kinetik’s control and/or cannot be reasonably predicted. Accordingly, such reconciliation is excluded from this news release. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
(1)
A non-GAAP financial measure. See “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Measures” for further details.
(2)
Net of contributions in aid of construction and returns of invested capital from unconsolidated affiliates.
(3)
Dividend Coverage Ratio is Distributable Cash Flow divided by total declared dividends.
(4)
Net Debt is defined as total current and long-term debt, excluding deferred financing costs, less cash and cash equivalents.
(5)
Liquidity is calculated as cash and cash equivalents of $0.7 million plus Revolving Credit Facility availability of $1,119.4 million as of March 31, 2026.
(6)
Leverage Ratio is total debt less cash and cash equivalents divided by last twelve months Adjusted EBITDA, calculated per the Company’s credit agreement. The calculation includes EBITDA Adjustments for Qualified Projects, Acquisitions and Divestitures.
(7)
Net Debt to Adjusted EBITDA Ratio is defined as Net Debt divided by last twelve months Adjusted EBITDA.
(9)
162.4 million shares, issued and outstanding shares as of March 31, 2026, is the sum of 68.8 million shares of Class A common stock and 93.6 million shares of Class C common stock.
KINETIK HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
2026
2025
(In thousands, except per share data)
Operating revenues:
Service revenue
$
93,772
$
127,926
Product revenue
312,233
312,505
Other revenue
3,971
2,832
Total operating revenues
409,976
443,263
Operating costs and expenses:
Costs of sales (exclusive of depreciation and amortization shown separately below) (1)
188,724
223,364
Operating expenses
70,301
63,603
Ad valorem taxes
8,775
6,791
General and administrative expenses
44,200
37,592
Depreciation and amortization expenses
101,833
92,673
Gain on disposal of assets, net
(19
)
(40
)
Total operating costs and expenses
413,814
423,983
Operating (loss) income
(3,838
)
19,280
Other income (expense):
Interest and other income
167
785
Interest expense
(53,420
)
(55,714
)
Equity in earnings of unconsolidated affiliates
51,188
57,478
Total other (expense) income, net
(2,065
)
2,549
(Loss) income before income taxes
(5,903
)
21,829
Income tax (benefit) expense
(778
)
2,567
Net (loss) income including noncontrolling interest
(5,125
)
19,262
Net (loss) income attributable to Common Unit limited partners
(3,458
)
13,132
Net (loss) income attributable to holders of Class A Common Stock
$
(1,667
)
$
6,130
Net (loss) income attributable to holders of Class A Common Stock, per share
Basic
$
(0.07
)
$
0.05
Diluted
$
(0.07
)
$
0.05
Weighted-average shares
Basic
65,910
60,162
Diluted
66,684
61,001
KINETIK HOLDINGS INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
Three Months Ended March 31,
2026
2025
(In thousands)
Net (Loss) Income Including Noncontrolling Interests to Adjusted EBITDA
Net (loss) income including noncontrolling interest (GAAP)
$
(5,125
)
$
19,262
Add back:
Interest expense
53,420
55,714
Income tax (benefit) expense
(778
)
2,567
Depreciation and amortization expenses
101,833
92,673
Amortization of contract costs
1,950
1,656
Proportionate EBITDA from unconsolidated affiliates
70,029
87,530
Share-based compensation
20,663
20,653
Commodity hedging unrealized loss
46,987
18,127
Integration costs
368
3,538
Litigation costs
11,613
3,015
Other one-time costs or amortization
1,614
3,590
Deduct:
Interest income
167
790
Gain on disposal of assets, net
19
40
Equity in earnings of unconsolidated affiliates
51,188
57,478
Adjusted EBITDA(1) (non-GAAP)
$
251,200
$
250,017
Distributable Cash Flow(2)
Adjusted EBITDA (non-GAAP)
$
251,200
$
250,017
Proportionate EBITDA from unconsolidated affiliates
(70,029
)
(87,530
)
Returns on invested capital from unconsolidated affiliates
68,309
63,337
Interest expense
(53,420
)
(55,714
)
Unrealized gain on interest rate swaps
(3,346
)
(670
)
Maintenance capital expenditures
(11,883
)
(12,459
)
Distributable cash flow (non-GAAP)
$
180,831
$
156,981
Free Cash Flow(3)
Distributable cash flow (non-GAAP)
$
180,831
$
156,981
Growth capital expenditures
(80,227
)
(65,712
)
Investments in unconsolidated affiliates
—
(888
)
Returns of invested capital from unconsolidated affiliates
—
560
Contributions in aid of construction
777
425
Free cash flow (non-GAAP)
$
101,381
$
91,366
KINETIK HOLDINGS INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES (CONTINUED)
Three Months Ended March 31,
2026
2025
(In thousands)
Reconciliation of net cash provided by operating activities to Adjusted EBITDA
Net cash provided by operating activities
$
185,143
$
176,830
Net changes in operating assets and liabilities
(3,894
)
(14,878
)
Interest expense
53,420
55,714
Amortization of deferred financing costs
(1,963
)
(1,972
)
Current income tax expense
—
107
Returns on invested capital from unconsolidated affiliates
(68,309
)
(63,337
)
Proportionate EBITDA from unconsolidated affiliates
70,029
87,530
Derivative fair value adjustment and settlement
(43,641
)
(17,457
)
Commodity hedging unrealized loss
46,987
18,127
Interest income
(167
)
(790
)
Integration costs
368
3,538
Litigation costs
11,613
3,015
Other one-time cost or amortization
1,614
3,590
Adjusted EBITDA(1) (non-GAAP)
$
251,200
$
250,017
March 31,
December 31,
2026
2025
(In thousands)
Net Debt(4)
Short-term debt
$
187,100
$
165,200
Long-term debt, net
3,644,128
3,627,720
Plus: Debt issuance costs, net
23,872
25,280
Total debt
3,855,100
3,818,200
Less: Cash and cash equivalents
720
3,951
Net debt (non-GAAP)
$
3,854,380
$
3,814,249
KINETIK HOLDINGS INC.
RESULTS OF OPERATIONS BY SEGMENT
The following tables present the Segment Adjusted EBITDA of the Company’s reportable segments and reconciliations of the segment profits to consolidated income before income tax expenses for the three months ended March 31, 2026 and 2025:
Midstream Logistics
Pipeline Transportation
Corporate and Other(1)
Elimination
Consolidated
For the three months ended March 31, 2026
(In thousands)
Revenue
$
403,720
$
2,285
$
—
$
—
$
406,005
Other revenue
3,962
9
—
—
3,971
Intersegment revenue(2)
—
6,824
—
(6,824
)
—
Total segment operating revenue
407,682
9,118
—
(6,824
)
409,976
Costs of sales (excluding depreciation and amortization expense)
(188,588
)
(136
)
—
—
(188,724
)
Intersegment costs of sales
(6,824
)
—
—
6,824
—
Operating expenses(3)
(78,302
)
(774
)
—
—
(79,076
)
General and administrative expenses
(5,510
)
(260
)
(38,430
)
—
(44,200
)
Proportionate EMI EBITDA
—
70,029
—
—
70,029
Other segment items(4)
50,463
—
32,732
—
83,195
Segment Adjusted EBITDA(5)
$
178,921
$
77,977
$
(5,698
)
$
—
$
251,200
Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes
Segment Adjusted EBITDA(5)
$
178,921
$
77,977
$
(5,698
)
$
—
$
251,200
Add back:
Other interest income
—
—
167
—
167
Gain on disposal of assets, net
19
—
—
—
19
Equity in earnings of unconsolidated affiliates
—
51,188
—
—
51,188
Deduct:
Interest expense
48
—
53,372
—
53,420
Depreciation and amortization expenses
99,498
2,329
6
—
101,833
Amortization of contract costs
1,950
—
—
—
1,950
Proportionate EMI EBITDA
—
70,029
—
—
70,029
Share-based compensation
—
—
20,663
—
20,663
Commodity hedging unrealized loss
46,987
—
—
—
46,987
Integration costs
—
—
368
—
368
Litigation costs
—
—
11,613
—
11,613
Other one-time costs or amortization
1,526
—
88
—
1,614
Income (loss) before income taxes
$
28,931
$
56,807
$
(91,641
)
$
—
$
(5,903
)
Midstream Logistics
Pipeline Transportation
Corporate and Other(1)
Elimination
Consolidated
For the three months ended March 31, 2025
(In thousands)
Revenue
$ 438,025
$ 2,406
$ —
$ —
$ 440,431
Other Revenue
2,830
2
—
—
2,832
Intersegment revenue(2)
—
4,804
—
(4,804)
—
Total segment operating revenue
440,855
7,212
—
(4,804)
443,263
Costs of sales (excluding depreciation and amortization expense)
(223,360)
(4)
—
—
(223,364)
Intersegment costs of sales
(4,804)
—
—
4,804
—
Operating expenses(3)
(69,909)
(485)
—
—
(70,394)
General and administrative expenses
(7,125)
(372)
(30,095)
—
(37,592)
Proportionate EMI EBITDA
—
87,530
—
—
87,530
Other segment items(4)
24,541
—
26,033
—
50,574
Segment Adjusted EBITDA(5)
$ 160,198
$ 93,881
$ (4,062)
$ —
$ 250,017
Reconciliation of Segment Adjusted EBITDA to income (loss) before income taxes
Kinetik Holdings Inc. (KNTK - Free Report) came out with a quarterly loss of $0.07 per share versus the Zacks Consensus Estimate of $0.16. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -142.87%. A quarter ago, it was expected that this company would post earnings of $0.15 per share when it actually produced earnings of $2.16, delivering a surprise of +1340%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
KINETIK HLDGS, which belongs to the Zacks Oil and Gas - Field Services industry, posted revenues of $409.98 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.75%. This compares to year-ago revenues of $443.26 million. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
KINETIK HLDGS shares have added about 39.9% since the beginning of the year versus the S&P 500's gain of 6%.
What's Next for KINETIK HLDGS?While KINETIK HLDGS has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for KINETIK HLDGS was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.22 on $409.69 million in revenues for the coming quarter and $1.02 on $2.03 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Field Services is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
RPC (RES - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.
This oil and gas services company is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of -83.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
RPC's revenues are expected to be $396 million, up 19% from the year-ago quarter.
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HOUSTON & MIDLAND, Texas--(BUSINESS WIRE)--Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik” or the “Company”) today announced it has reached final investment decision on Kings Landing II (“KLII”), a 300 million cubic feet per day (“Mmcf/d”) natural gas processing plant at its existing Kings Landing complex in New Mexico. KLII is a 50% increase from the originally contemplated 200 Mmcf/d capacity expansion.
“We remain excited by the continued growth and robust development activity in the Northern Delaware Basin,” said Jamie Welch, President & CEO of Kinetik. “Our decision to proceed with KLII at this expanded scale is a direct response to this activity. Today’s announcement reflects the strength of our existing acreage footprint, the accelerated pace of customer development plans, and sustained commercial momentum. Importantly, the construction and design of KLII preserves the ability to add a third 200 Mmcf/d processing plant at the Kings Landing complex.”
Upon completion of KLII in the second half of 2028, Kinetik’s system-wide processing capacity will exceed 2.7 billion cubic feet per day, with more than 700 Mmcf/d of sour gas processing capacity in northern Eddy and Lea Counties.
KLII is estimated to cost approximately $260 million. With KLII’s increased processing capacity, Kinetik now expects to be at the top end of its 2026 Capital Expenditures1 Guidance range of $450 million to $510 million.
About Kinetik Holdings Inc.
Kinetik is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation operating in the Delaware Basin. Kinetik is headquartered in Houston and Midland, Texas. Kinetik provides comprehensive gathering, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water. Kinetik posts announcements, operational updates, investor information and press releases on its website, www.kinetik.com.
Forward-Looking Statements
This news release includes certain statements that may constitute “forward-looking statements” for purposes of the federal securities laws. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts, outlooks, guidance or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “seeks,” “possible,” “potential,” “predict,” “project,” “prospects,” “guidance,” “outlook,” “should,” “would,” “will,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about the Company’s future business strategy and plans, expectations, and objectives for the Company’s operations, including statements about strategy, synergies, growth, expansion, and other capital projects and the timing and cost thereof, future operations, financial guidance, growth opportunities. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on February 26, 2026. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future development, or otherwise, except as may be required by law.
Kinetik Holdings remains a compelling 'Buy' while maintaining a well-covered 6.4% dividend yield. KNTK posted record Q1 2026 adjusted EBITDA, driven by strong midstream logistics performance and favorable commodity price spreads. Growth catalysts include expanded customer contracts, Kings Landing sour gas conversion, and the ECCC pipeline, supporting long-term cash flow visibility and incremental expansion.
Kinetik remains a quality midstream player, with my buy rating supported by Kings Landing and New Mexico expansion potential. KNTK's dividend yield has increased to 6.3%, with a $0.81 quarterly payout and a robust buyback program, enhancing capital returns. Valuation is not cheap, with EV/EBITDA at 21.6x (forward 11.8x), making future upside dependent on EBITDA growth from Kings Landing and New Mexico.
