Kinetik Holdings Inc. Class A Common Stock (KNTK)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable cash flows, honest accounting, and a price that leaves room for error. Kinetik operates midstream assets in the Texas Delaware Basin, gathering, processing, treating, stabilizing, and moving natural gas, natural gas liquids, and crude. The local network can be a modest advantage, but it is not a wide moat. Filed results show fiscal Q2 2026, the quarter ended 2026-06-30, revenue of $581.4M, net income of $49.5M, and diluted EPS of $0.64. That followed fiscal Q1 2026 revenue of $410.0M and a net loss of $1.7M, or EPS of -$0.07. For fiscal 2025, revenue was $1.8B, net income $178.3M, and EPS $2.63, up from fiscal 2024 revenue of $1.5B, net income of $80.0M, and EPS of $1.02, though fiscal 2023 net income was higher at $289.4M. So growth is real but bumpy. FairStock calculations at the 2026-10-13 close include P/E 19.42, EV/EBITDA 6.67, PEG 0.30, dividend yield 6.00%, and FCF yield 2.9%. ROE of 19.23% looks fine, but ROCE of 1.96% tells me capital intensity and debt are eating returns; D/E of 1.37 and an Altman Z-Score of 0.38 are reminders of leverage risk. Piotroski F-Score of 7/9 is respectable, and the overall FairStock score is 54/100. Price of $55.55 sits near the 52-week high of $56.92, so there is little margin of safety. I like the assets, distribution, and volume growth potential, but not at a price that already reflects success. The 6% yield helps, yet free cash flow of $123.1M TTM is modest against a $4.2B market cap. This is a show-me story.

In plain English: Kinetik handles gathering, processing, and moving oil and gas in the Texas Delaware Basin. The business is growing and pays a large dividend, but profits have been uneven and it carries a lot of debt. At the recent price near the top of its yearly range, the shares look fair rather than clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer