olivLaw · US equity research
Kinetik Holdings Inc. KNTK
Natural Gas Transmission · SIC 4922 · Vertical: Natural Gas Transmission (SIC 4922)
Kinetik Holdings is an integrated midstream company in the Delaware Basin of the Permian, offering gathering, processing, treating and transport of natural gas, NGLs, crude oil and produced water. Its relevance is rising as Permian production grows and demand for gas linked to LNG exports increases, with revenue of 1.76 billion USD in 2025.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Kinetik Holdings Inc. (KNTK) stock was 51.17 USD (−5.66% on the day), with market capitalisation 3.4 bn USD, P/E 18.1 on diluted EPS of 2.83 USD over the last 12 months, dividend yield 2.93%, beta 0.72, 52-week range 31.68–58.09 USD. Latest reported quarter (Q2 2026): revenue of 581.4 m USD (+36.3% YoY), net income of 49.5 m USD (+109.5% YoY), diluted EPS 0.64 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 39.0
- weak (30–45)
- Bollinger (20, 2)
- 52.06 – 57.78
- below the lower band · %B -0.16 · band width 10.4%
- SMA 50 / 200
- 54.05 / 48.98
- mixed trend
- MACD (12, 26, 9)
- 0.18 / 0.57
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −3.6% | −1.1% | −2.5 pp | — |
| 3 months | +5.8% | −0.5% | +6.3 pp | — |
| 6 months | +6.1% | +4.4% | +1.7 pp | — |
| Year to date | +41.9% | +12.3% | +29.6 pp | — |
| 1 year | +36.7% | +13.5% | +23.1 pp | +12.1% |
| 3 years | +39.5% | +76.4% | −36.9 pp | +66.7% |
| 5 years | +55.7% | +63.7% | −8.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 396.4 m | 385.7 m | 443.3 m | 426.7 m | 464.0 m | 430.4 m | 410.0 m | 581.4 m |
| Cost of revenue | 144.6 m | 175.8 m | 223.4 m | 156.7 m | 235.4 m | 170.5 m | 188.7 m | 237.6 m |
| Operating income | 72.9 m | 23.7 m | 19.3 m | 77.5 m | 19.8 m | 48.4 m | -3.8 m | 134.0 m |
| Depreciation & amortisation | 87.6 m | 87.9 m | 92.7 m | 93.8 m | 95.4 m | 100.8 m | 101.8 m | 103.3 m |
| Interest expense | 67.1 m | 51.2 m | 57.0 m | 59.1 m | 64.3 m | 59.7 m | 53.2 m | 55.1 m |
| Pre-tax income | 91.9 m | 18.0 m | 21.8 m | 81.7 m | 16.7 m | 456.4 m | -5.9 m | 137.5 m |
| Income tax | 8.3 m | 1.8 m | 2.6 m | 7.3 m | 1.1 m | 39.7 m | -778.0 k | 14.4 m |
| Net income | 25.8 m | 5.5 m | 6.1 m | 23.6 m | 5.3 m | 143.2 m | -1.7 m | 49.5 m |
| Diluted EPS | 0.35 | 0.09 ≈ | 0.05 | 0.33 | 0.03 | 2.23 ≈ | -0.07 | 0.64 |
| Operating cash flow | 214.1 m ≈ | 144.0 m | 176.8 m | 129.1 m ≈ | 188.1 m ≈ | 110.1 m | 180.4 m | 161.1 m ≈ |
| Capex | 58.5 m ≈ | 107.7 m | 74.5 m | 127.3 m ≈ | 156.5 m ≈ | 134.1 m | 83.0 m | 109.2 m ≈ |
| Dividends paid | 44.9 m ≈ | 46.8 m | 47.0 m | 48.0 m ≈ | 48.6 m ≈ | 50.2 m | 52.3 m | 59.9 m ≈ |
| Share repurchases | 0 ≈ | 0 | — | — | 100.0 m ≈ | 3.5 m | — | — |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 20 percentile of its own 10-quarter history (min 13.7, median 52.6, max 1,340.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 76.8 m | 135.8 m | 148.4 m | 160.6 m | 1.2 bn | 1.3 bn | 1.5 bn | 1.8 bn |
| Revenue YoY | +406.9% | +76.9% | +9.3% | +8.2% | +655.5% | +3.5% | +18.0% | +19.0% |
| Net income | -239.0 k | -1.3 bn | -1.2 bn | 1.5 m | 250.7 m | 289.4 m | 80.0 m | 178.3 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | +16,817.7% | +15.4% | −72.4% | +122.8% |
| Diluted EPS | -0.51 | -95.70 | 0.00 | 0.00 | 1.47 | 2.52 | 1.02 | 2.63 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | +71.4% | −59.5% | +157.8% |
| net % | -0.3% | -977.7% | -778.8% | 0.9% | 20.7% | 23.0% | 5.4% | 10.1% |
| Free cash flow | -83.3 m | -266.4 m | -79.3 m | 157.5 m | 406.8 m | 271.6 m | 373.8 m | 111.6 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 4.0 m USD
- Financial debt
- 3.8 bn USD
- Net debt
- 3.8 bn USD
- Equity
- -565.4 m USD
- Total assets
- 7.1 bn USD
- Debt / equity
- unavailable
- Current ratio
- 0.69x
- ROE
- unavailable
- ROA
- 2.6%
- FCF margin
- 6.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 148.4 m | 160.6 m | 1.2 bn | 1.3 bn | 1.5 bn | 1.8 bn | SEC (XBRL)· 26 Feb 2026verified |
| Cost of revenue | 65.1 m | 233.6 m | 541.5 m | 515.7 m | 620.6 m | 785.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Gross profit | 83.4 m ≈ | -73.0 m ≈ | 672.0 m ≈ | 740.7 m ≈ | 862.3 m ≈ | 978.4 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Operating income | -1.0 bn | 53.5 m | 150.5 m | 159.3 m | 179.2 m | 164.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Depreciation & amortisation | 223.8 m | 243.6 m | 260.3 m | 281.0 m | 324.2 m | 382.6 m | SEC (XBRL)· 26 Feb 2026verified |
| EBITDA | -796.7 m ≈ | 297.0 m ≈ | 410.8 m ≈ | 440.2 m ≈ | 503.4 m ≈ | 547.6 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Interest expense | 139.7 m | 104.9 m | 142.4 m | 217.9 m | 218.1 m | 240.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Pre-tax income | -1.2 bn | 3.3 m | 253.3 m | 153.5 m | 267.3 m | 576.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | 968.0 k | 1.9 m | 2.6 m | -232.9 m | 23.0 m | 50.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | -1.2 bn | 1.5 m | 250.7 m | 289.4 m | 80.0 m | 178.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | 0.00 | 0.00 | 1.47 | 2.52 | 1.02 | 2.63 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 0 | 0 | 41.7 m | 146.2 m | 60.1 m | 62.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividend per share | 1.50 | 1.50 | — | — | — | — | SEC (XBRL)· 22 Feb 2022verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 24.2 m | 18.7 m | 6.4 m | 4.5 m | 3.6 m | 4.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Receivables | — | 178.1 m | 204.0 m | 215.7 m | 111.9 m | 85.3 m | SEC (XBRL)· 26 Feb 2026verified |
| Inventories | 3.6 m | 2.1 m | 4.8 m | 3.1 m | 3.6 m | 4.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | 42.8 m | 217.5 m | 241.9 m | 257.3 m | 294.8 m | 302.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | 195.8 m | 1.8 bn | 2.5 bn | 2.7 bn | 3.4 bn | 3.9 bn | SEC (XBRL)· 26 Feb 2026verified |
| Goodwill | — | 0 | 5.1 m | 5.1 m | 5.1 m | 5.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Intangibles (excl. goodwill) | — | 786.0 m | 695.4 m | 591.7 m | 652.5 m | 553.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | 1.8 bn | 3.6 bn | 5.9 bn | 6.5 bn | 6.8 bn | 7.1 bn | SEC (XBRL)· 26 Feb 2026verified |
| Accounts payable | — | 12.2 m | 17.9 m | 34.0 m | 27.2 m | 42.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Short-term debt | 0 | 54.3 m | 0 | 0 | 140.2 m | 165.2 m | SEC (XBRL)· 26 Feb 2026verified |
| Long-term debt | 624.0 m | 2.3 bn | 3.4 bn | 3.6 bn | 3.4 bn | 3.7 bn | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | 30.0 m | 240.9 m | 227.8 m | 250.1 m | 418.6 m | 440.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Total liabilities | 863.5 m | 2.5 bn | 3.6 bn | 3.9 bn | 3.8 bn | 4.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Equity | 10.0 k † | 10.0 k † | -839.8 m † | -530.8 m † | -3.0 bn † | -565.4 m † | SEC (XBRL)· 26 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 102.1 m | 235.6 m | 613.0 m | 584.5 m | 637.3 m | 604.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Capex | 181.4 m | 78.0 m | 206.2 m | 312.9 m | 263.5 m | 492.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | -79.3 m ≈ | 157.5 m ≈ | 406.8 m ≈ | 271.6 m ≈ | 373.8 m ≈ | 111.6 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | -505.6 m | -99.6 m | -286.1 m | -686.3 m | -176.9 m | -199.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | 372.8 m | -136.8 m | -339.2 m | 100.0 m | -461.4 m | -404.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividends paid | 0 | 0 | 39.3 m | 81.4 m | 175.2 m | 193.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Share repurchases | — | 0 | 0 | 5.8 m | 0 | 176.0 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 51 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 3.4 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation53
- Balance sheet5
- Quality50
- Growth100
- Returns60
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 19.71 – 161.95 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)58.72 – 161.95 (Mid 94.04)WACC 7.2% · starting FCFF 368.2 m USD · terminal value share of EV 81%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -1.1%
- Peers: EV/EBITDA24.15 – 59.18 (Mid 50.59)9 companies used · median multiple 12.2x · quartiles 9.2x – 13.1xDTM, ET, KGS, KMI, NGL, TRGP, USAC, WES, WMB
- Peers: P/E38.85 – 69.93 (Mid 48.40)10 companies used · median multiple 17.1x · quartiles 13.7x – 24.7xAM, AROC, DTM, EPD, ET, KMI, TRGP, USAC, WES, WMB
- Dividend discount (DDM)19.71 – 26.51 (Mid 22.61)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 51/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 10.4% | 29 (vs peers) | 7% |
| FCF conversion · Quality | 79.9% | 71 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 13.3% | 100 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | 21.4% | 100 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | 6.6x | 9 (vs peers) | 12% |
| Interest coverage · Balance sheet | 0.9x | 0 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 0.7x | 0 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 18.1x | 58 (vs peers) | 12% |
| EV/EBITDA · Valuation | 12.2x | 44 (vs peers) | 12% |
| FCF yield · Valuation | 4.6% | 58 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 9.3% | 100 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | 134.5% | 0 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet5/100 · 3/3 factors with a value
- Growth100/100 · 2/2 factors with a value
- Quality50/100 · 2/3 factors with a value
- Returns60/100 · 2/2 factors with a value
- Valuation53/100 · 3/3 factors with a value
Memo
KINETIK HOLDINGS INC. (KNTK). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 1.8 bn USD in 2025; YoY growth 19.0%; net margin 10.4%; net debt/EBITDA 6.6x.
The estimated value range is 31.50–64.55 USD per share (median of 4 methods, agreement: medium); assumptions are illustrative. Against the central value of 49.50 USD, the price of 51.17 USD leaves a potential of -3.3% (value / price − 1) and a margin of safety of -3.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 51/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 79.9%
- Revenue CAGR 3Y: 13.3%
- EPS CAGR 3Y: 21.4%
- Shareholder yield (distributions): 9.3%
What contradicts it
- Net margin: 10.4%
- Net debt / EBITDA: 6.6x
- Interest coverage: 0.9x
- Current ratio: 0.7x
- Payout ratio (FCF): 134.5%
Not assessed (insufficient data or a ratio without meaning): ROIC.
Versus the vertical median
Natural Gas Transmission (SIC 4922) · same industry (4-digit SIC) · compared with 17 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| WMBWilliams Companies, Inc. | 83.0 bn | 27.1 | 24.0% | 25.2% | +13.8% | +11% / +84% |
| EPDEnterprise Products Partners L.P. | 79.2 bn | 12.0 | — | 10.2% | −6.4% | +12% / +37% |
| KMIKinder Morgan, Inc. | 70.2 bn | 19.5 | 11.6% | 19.6% | +12.2% | +15% / +79% |
| ETEnergy Transfer LP | 67.0 bn | 12.7 | — | 4.9% | +3.5% | +16% / +40% |
| TRGPTarga Resources Corp. | 61.1 bn | 27.2 | 72.6% | 13.5% | +3.9% | +63% / +215% |
| WESWestern Midstream Partners, LP | 17.6 bn | 13.6 | — | 28.2% | +6.6% | +8% / +43% |
| DTMDT Midstream, Inc. | 12.0 bn | 25.5 | 9.9% | 35.4% | +26.7% | −3% / +105% |
| AMAntero Midstream Corporation | 9.4 bn | 14.0 | 31.6% | 53.4% | +7.4% | +10% / +49% |
| AROCArchrock, Inc. | 5.0 bn | 14.8 | 22.6% | 22.9% | +28.7% | +17% / +97% |
| KGSKodiak Gas Services, Inc. | 4.2 bn | 48.6 | 4.6% | 5.8% | +12.8% | +17% / +134% |
| USACUSA Compression Partners, LP | 3.5 bn | 22.3 | — | 12.4% | +5.0% | −3% / +3% |
| KNTKKinetik Holdings Inc. | 3.4 bn | 18.1 | — | 10.4% | +19.0% | +37% / +40% |
| NGLNGL Energy Partners LP | 1.9 bn | — | — | -3.8% | −9.0% | +58% / +258% |
| SMCSummit Midstream Corporation | 308.0 m | 9,397.5 | 0.1% | 0.0% | +30.8% | +15% / +40% |
| NGGNational Grid PLC | — | — | 8.6% | 15.8% | −7.4% | +12% / +29% |
| TGSGas Transporter Of The South Inc. | — | — | 18.1% | 30.3% | +23.7% | −26% / +67% |
| TRPTc Energy Corporation | — | — | 12.8% | 23.1% | +10.7% | +14% / +67% |
| TCPATranscanada Pipelines Ltd | — | — | 14.0% | 23.1% | +7.2% | −13% / unavailable |
1- and 3-year price returns: for KNTK from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 34.53 Total return -33% · Per year -33% | 60.80 Total return 19% · Per year 19% | 91.26 Total return 78% · Per year 78% |
| 3 years | 39.69 Total return -22% · Per year -8% | 78.03 Total return 52% · Per year 15% | 127.69 Total return 150% · Per year 36% |
| 5 years | 45.62 Total return -11% · Per year -2% | 100.15 Total return 96% · Per year 14% | 178.67 Total return 249% · Per year 28% |
- Exit P/E± 19.51
- Net margin± 13.66
- Annual revenue growth± 10.34
- Annual dilution± 1.15
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).
In brief
Kinetik Holdings is an integrated midstream company in the Delaware Basin of the Permian, offering gathering, processing, treating and transport of natural gas, NGLs, crude oil and produced water. Its relevance is rising as Permian production grows and demand for gas linked to LNG exports increases, with revenue of 1.76 billion USD in 2025 1.
SWOT
Strengths
- The company has an integrated infrastructure from gathering to processing and transport, concentrated in the Delaware Basin.
- Most service revenue rests on fee-based contracts, which reduces direct exposure to commodity prices.
- The company reported a record second quarter in 2026, with rising Adjusted EBITDA and free cash flow.
Weaknesses
- Most assets are located in a single region, which increases exposure to local events.
- High net debt relative to Adjusted EBITDA limits financial flexibility.
- Volumes depend on customers' development levels, which the company does not control.
Opportunities
- Expanding processing capacity and projects under construction could raise volumes over the medium term.
- Additional access to Gulf Coast markets could improve prices for customers and the company's revenue.
- Demand for gas for exports and data centers could support new contracts.
Threats
- A slowdown in producer activity could significantly reduce processed volumes.
- Trade tariffs and geopolitical conflicts could raise construction and material costs.
- Customers have contractual rights to reduce or suspend obligations under certain conditions.
Risks
- Geographic concentrationhigh
Assets are concentrated in the Delaware Basin, which can expose the company to regional issues such as drought, regulation or transport interruptions 1.
- Dependence on producer developmenthigh
Volumes depend on customers deciding to develop dedicated acreage, and the natural decline of wells could reduce revenue 1.
- Commodity price exposuremedium
Product sales revenue is tied to gas, NGL and condensate prices, which can be volatile 12.
- Leverage and cost of financingmedium
The level of debt and higher interest rates could limit the company's ability to finance investments 23.
- Reliance on third-party transportlow
The company depends on pipelines outside its control, and an interruption of these could affect revenue 1.
Investment thesis
What would need to be true (bull case)
- If Permian production keeps growing and expansion projects are completed on time, volumes and revenue could exceed current estimates, as the raised guidance suggests 3.
- Fee-based contracts and new access to Gulf Coast markets could stabilise cash flows despite price volatility 23.
- The company's experience in integrating acquisitions and new projects could support rapid growth in processing capacity 1.
What would break the thesis
- If producer activity slows, processed volumes could fall and service revenue could be affected quickly 1.
- The high level of debt could limit flexibility if financing costs stay high or EBITDA declines 23.
- Geographic concentration and reliance on third-party pipelines could amplify the impact of any local disruption on results 1.
What to watch
- Delivery of the 2026 Adjusted EBITDA guidanceQ4 2026
- Start-up of the Kings Landing acid gas injection project2026
- Expansion of the ECCC Pipeline and New Mexico volume trends2027
- Renewal of the receivables securitization facility due March 2027Q1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).
The business
Kinetik Holdings Inc. (NYSE: KNTK) is an integrated midstream company in the Permian Basin, providing gathering, compression, processing and treating of gas, NGL transport and services for crude oil and produced water 13. The company reports two segments: Midstream Logistics, which generates most service revenue, and Pipeline Transportation, which includes equity interests in pipelines and joint ventures 1. For 2026 the company raised its Adjusted EBITDA guidance to between 1.04 and 1.1 billion USD 3.
The infrastructure includes over 4,200 miles of gas pipeline in the Delaware Basin and eight processing complexes with cryogenic capacity of over 2.4 Bcf/d 1. In May 2026 a final investment decision was taken on Kings Landing II, which will expand capacity to 2.7 Bcf/d in 2028 3. In October 2025 the company sold its 27.5% stake in EPIC for 504.2 million USD in upfront cash 1.
The financing structure relies on senior unsecured facilities, and net debt to Adjusted EBITDA stood at 3.84x in the second quarter of 2026 3. Commercial activity is supported by fee-based service contracts and by product sales linked to commodity prices, which are exposed to volatility 12.
Segments
Midstream Logistics
The segment provides gas gathering and processing, crude oil gathering and storage, and produced water handling, and is the main source of service revenue 1. In the second quarter of 2026 its Adjusted EBITDA rose 35% year on year, helped by operating performance and better NGL margins 3.
Pipeline Transportation
The segment includes interests in the EMI pipelines, the Kinetik NGL system and the Delaware Link pipeline, which transport gas and NGLs toward the Gulf Coast 1. In the second quarter of 2026 its Adjusted EBITDA fell 14% year on year due to the divestiture of the EPIC Crude interest, while Permian Highway performed better 3.
Market context
The Permian midstream market depends on producers' development activity and hydrocarbon prices, which remain volatile due to geopolitical conflicts and trade policy 12. The company notes that demand for gas for LNG exports and data centers supports volume growth in the region 3. A slower pace of drilling could reduce processed volumes and service revenue 1.
Inflation and interest rates affect financing and construction costs. In June 2026 US inflation was 3.5%, and the Federal Reserve kept its target range unchanged 2. The company reported processed gas volumes of 1.74 Bcf/d in the second quarter of 2026 3.
Trends
- Growth in Permian productiontailwind
Producer development in the Permian, including projects accelerated into late 2026 and early 2027, could increase volumes on Kinetik's systems 3. The company says customer activity is pulling forward 3.
- Demand for gas from exports and data centerstailwind
Companies cite LNG exports and new US data centers as drivers of gas demand from the Permian, which could support new transport capacity to the Gulf Coast 3.
- Commodity price volatilitymixed
Oil, gas and NGL prices remain volatile because of the Middle East conflict and trade uncertainty, affecting product sales revenue 2.
- Inflation and interest rate pressureheadwind
High inflation and interest rates could raise the cost of capital and construction projects, and the company's debt is exposed to these conditions 12.
Competitive position
Kinetik competes for customers with other gathering and transport systems for oil, gas and produced water, including companies that may expand their networks or customers who build their own systems 1. Competition may be intensified by weaker demand, fuel costs and alternative energy sources 1.
The reviewed sources do not name specific competitors and describe competition in general terms. The company notes that some competitors may have access to larger supplies of hydrocarbons and produced water 1.
- Other Permian gathering and transport operators
The sources refer generally to oil and gas gathering and transport systems in the same region, without naming companies.
- Producer-built proprietary systems
Customers may build their own gathering systems, which reduces demand for the company's services.
- Produced water service providers
Competition comes from companies offering produced water gathering and disposal.
- Alternative energy sources
Renewable electricity and coal can reduce demand for hydrocarbons and, indirectly, for the company's services.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Kinetik’s (KNTK) Record Quarter Sets Up A Bigger 2027 BetYahoo Finance — News · 16 Sept 2026 · EN
- Kinetik Holdings: Buy, Sell, or Hold After Its Recent Run?Yahoo Finance — News · 03 Sept 2026 · EN
The latest news item in our archive is from 16 Sept 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report04 Nov 2026Results of operations · Financial statements and exhibits
- Current report26 Oct 2026Other events
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Financial statements and exhibits
- Current report25 Jun 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report20 May 2026Shareholder vote
- Quarterly report08 May 2026
- Current report07 May 2026Results of operations · Financial statements and exhibits
- Proxy statement08 Apr 2026
- Current report03 Apr 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Kinetik Holdings Inc. · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Kinetik Holdings Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Kinetik Holdings Inc. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.