Kinetik (NYSE:KNTK) Issues Quarterly Earnings Results

Kinetik (NYSE:KNTK) issued its quarterly earnings data on Thursday. The company reported $2.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.15 by $2.01, Briefing.com reports. Kinetik had a negative return on equity of 26.88% and a net margin of 29.23%.The business had revenue of $430.42 million for the quarter. During the same period last year, the company earned $0.01 earnings per share. The firm’s revenue was up 11.5% on a year-over-year basis.

Here are the key takeaways from Kinetik’s conference call:

• Management set 2026 adjusted EBITDA guidance of $950M–$1.05B (midpoint $1.0B, ~7% growth ex-EPIC) and a $450M–$510M capex plan while targeting leverage of 3.5–4.0x and annual dividend increases of 3–5% until 1.6x coverage, signaling a disciplined growth-and-return framework.
• Operationally, Kings Landing reached full commercial service with 99.8% runtime, Kings Landing sour conversion reached FID (in-service by year-end 2026), and the ECCC pipeline is on track to be in service next quarter, expanding sour-gas and processing capacity in the Delaware Basin.
• Fourth-quarter 2025 results showed adjusted EBITDA of $252M, distributable cash flow of $152M and free cash flow of -$12M, with full-year adjusted EBITDA of $988M slightly above the revised midpoint, $176M of share repurchases and year-end leverage of 3.8x.
• Management expects meaningful gas-price volatility at Waha with ~100 MMcf/d of price-related production shut-ins modeled for 2026 (down from ~170 MMcf/d in 4Q), acknowledging this as a material headwind despite marketing offsets and ~40% hedging of transport spread exposure.
• Commercially, Kinetik amended major Durango contracts to extend terms into the mid-2030s with more fixed fees and improved NGL/residue control, and signed long-term deals (e.g., CPV, INEOS) that management says will increase EBITDA beginning in 2026 and improve long-term cash flow visibility.

Kinetik Stock Down 3.3%

Shares of NYSE KNTK traded down $1.55 during midday trading on Friday, reaching $45.45. 3,902,290 shares of the stock were exchanged, compared to its average volume of 1,666,212. Kinetik has a twelve month low of $31.33 and a twelve month high of $59.74. The firm has a 50-day simple moving average of $39.56 and a two-hundred day simple moving average of $38.90. The firm has a market cap of $7.34 billion, a price-to-earnings ratio of 17.68, a PEG ratio of 1.15 and a beta of 0.73.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Wells Fargo & Company upped their price target on shares of Kinetik from $40.00 to $44.00 and gave the company an “equal weight” rating in a report on Friday. Jefferies Financial Group downgraded Kinetik from a “buy” rating to a “hold” rating and set a $43.00 price target on the stock. in a report on Friday, February 6th. Scotiabank reissued an “outperform” rating and set a $48.00 price target on shares of Kinetik in a research note on Friday, January 16th. Wolfe Research lowered shares of Kinetik from an “outperform” rating to a “peer perform” rating in a research report on Tuesday, January 27th. Finally, Royal Bank Of Canada dropped their price objective on Kinetik from $52.00 to $46.00 and set an “outperform” rating on the stock in a research note on Wednesday, November 19th. Six analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $44.73.

Insider Activity at Kinetik

In other Kinetik news, insider Matthew Wall sold 8,083 shares of the company’s stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $36.05, for a total transaction of $291,392.15. Following the completion of the transaction, the insider directly owned 554,738 shares in the company, valued at approximately $19,998,304.90. This represents a 1.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 3.83% of the stock is owned by company insiders.

Institutional Investors Weigh In On Kinetik

A number of institutional investors have recently modified their holdings of KNTK. Zimmer Partners LP acquired a new position in Kinetik during the 4th quarter worth $98,611,000. Invesco Ltd. boosted its position in shares of Kinetik by 22.4% in the 4th quarter. Invesco Ltd. now owns 1,775,216 shares of the company’s stock valued at $63,997,000 after purchasing an additional 325,251 shares during the period. State Street Corp boosted its holdings in shares of Kinetik by 5.1% in the fourth quarter. State Street Corp now owns 1,643,532 shares of the company’s stock valued at $59,249,000 after acquiring an additional 79,474 shares during the period. Wellington Management Group LLP boosted its stake in Kinetik by 149.6% during the 4th quarter. Wellington Management Group LLP now owns 1,608,403 shares of the company’s stock worth $57,983,000 after purchasing an additional 964,130 shares during the period. Finally, Geode Capital Management LLC grew its holdings in shares of Kinetik by 1.9% during the fourth quarter. Geode Capital Management LLC now owns 1,049,603 shares of the company’s stock worth $37,845,000 after buying an additional 19,823 shares during the last quarter. 21.11% of the stock is owned by institutional investors and hedge funds.

Kinetik Company Profile

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.