Kinetik Holdings Inc. (KNTK) AI Stock Analysis
KNTK AI stock analysis summary
AI ResearchKinetik Holdings Inc. is a Texas Delaware Basin midstream operator providing gathering, processing, transportation, and treating services. In the trailing twelve months, the company generated $1.89B in revenue with a 29.2% profit margin. It carries $3.98B in total debt alongside negative shareholders' equity of -$1.19B.
- Market cap
- $9.36B
- Revenue (TTM)
- $1.89B
- P/E
- 19.3x fwd 21.4x
- 1Y return
- 64.3% S&P 500 16.8%
- Avg. target
- $58.81 6.4% vs last close
Bull case
- Quarterly revenue grew 36.3% and earnings surged 95.2% year-over-year in the quarter ended June 30, 2026.
- KNTK shares gained 64.3% over the past year, significantly outpacing the 16.8% return of the S&P 500.
- The stock delivers an annualized forward dividend yield of 5.86%, supported by 6 consecutive years of payments.
Bear case
- The balance sheet shows negative shareholders' equity of -$1.19B and total debt of $3.98B against just $7.8M in cash.
- FY2026 EPS is expected to fall 51.0% to $1.52 from $3.15 reported in FY2025.
- Free cash flow dropped to $74.4M in FY2025, which was well below the $500.1M spent on dividends paid.
What Kinetik does
Kinetik Holdings Inc. is a midstream company specializing in essential services within the Texas Delaware Basin. Headquartered in Midland, Texas, its operations encompass infrastructure for gathering, transportation, compression, processing, and treating of natural gas, natural gas liquids, crude oil, and water. These services connect production sites to downstream markets, assisting energy producers with hydrocarbon handling. Founded on operational reliability, Kinetik maintains a network of pipelines, compression facilities, and processing units across the region.
Growth and profitability
Kinetik increased its annual revenue from $662.0M in FY2021 to $1.76B in FY2025, reflecting a 5-year revenue CAGR of 33.9%. Annual net income grew from $1.5M in FY2021 to $525.9M in FY2025, while gross margin moved from 27.9% to 33.8% over the same period. For the trailing twelve months, revenue reached $1.89B with diluted EPS of $2.86 and an operating margin of 23.0%. In the latest quarter ended June 30, 2026, quarterly revenue grew 36.3% year-over-year, and quarterly earnings grew 95.2%.
Balance sheet and cash flow
As of June 30, 2026, Kinetik held $7.8M in cash and short-term investments against $3.98B in total debt, resulting in net debt of $3.97B and a current ratio of 0.13. Total assets stood at $7.20B, while shareholders' equity was -$1.19B. In FY2025, operating cash flow was $604.1M and free cash flow was $74.4M. Capital expenditures used $529.7M, while dividends paid totaled $500.1M and share buybacks accounted for $176.0M. Outstanding shares grew 100.6% over 5 years.
Valuation and performance
KNTK trades at a trailing P/E of 19.3x and a forward P/E of 21.4x, compared to medians of 15.0x and 12.7x for its US-listed Energy peers. Its EV/EBITDA of 6.7x sits below the peer median of 8.0x, while its price-to-sales multiple of 5.0x is above the peer median of 1.8x. Over the past year, KNTK delivered a return of 64.3%, outperforming the S&P 500 (SPY) return of 16.8%. Over 5 years, KNTK returned 82.5% versus 83.0% for the S&P 500.
KNTK dividend
Kinetik pays a quarterly dividend with an annualized forward payout of $3.24 per share, resulting in a 5.86% dividend yield. The company has paid dividends for 6 consecutive years, and its payout ratio stands at 85.3%. Its last ex-dividend date was October 23, 2026.
What analysts expect
Wall Street coverage includes 8 Strong Buy, 5 Buy, and 4 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target is $58.81, indicating 6.4% upside compared to the last close of $55.30. Consensus projections forecast FY2026 revenue of $2.13B and EPS of $1.52, before rising 72.0% to $2.61 in FY2027. Kinetik beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 4, 2026.
Key risks and what to watch
- Short-term liquidity appears tight, evidenced by a current ratio of 0.13 and cash reserves of $7.8M as of June 30, 2026.
- A high dividend payout ratio of 85.3% may limit capital allocation flexibility if cash flows compress.
- The short interest sits at 11.4% of float, reflecting elevated negative sentiment among market participants.
- Substantial debt leverage of $3.97B net debt could strain financial performance if capital costs rise.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this KNTK AI stock analysis
This page is an AI-written research summary of Kinetik Holdings Inc. (KNTK). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: KNTK income statement, KNTK balance sheet, KNTK key metrics, KNTK analyst forecast, KNTK chart. See the KNTK stock overview for the latest quote and news.
KNTK AI stock analysis FAQ
What is Kinetik Holdings Inc.'s dividend yield?
Kinetik pays an annual forward dividend of $3.24 per share, representing a dividend yield of 5.86% as of October 16, 2026.
Where does Kinetik Holdings operate?
The company operates in the Texas Delaware Basin, providing midstream infrastructure for natural gas, crude oil, natural gas liquids, and water.
What are analysts forecasting for Kinetik's earnings?
Analysts estimate EPS of $1.52 on revenue of $2.13B for FY2026, followed by EPS of $2.61 on revenue of $2.48B in FY2027.
How leveraged is Kinetik Holdings?
As of June 30, 2026, Kinetik held $3.98B in total debt and $7.8M in cash, resulting in net debt of $3.97B and negative shareholders' equity of -$1.19B.