Kinetik Holdings' consensus price target was revised down from $53.36 to $51.50 as analysts weighed near-term earnings headwinds from sluggish production growth, weaker commodity prices, and increased capital expenditures against a resilient long-term outlook for gas-focused midstream operators.
Analyst Commentary
- Bearish analysts point to slowed basin-level production growth and "curtailed" volumes continuing in Q2, which are expected to weigh on near-term earnings.
- Concerns remain about whether the positive outlook for gas-levered names will be sufficient to fully offset rising capital expenditures and preserve cash flows.
- Weaker quarter-over-quarter commodity prices are likely to negatively impact quarterly earnings results.
- Bullish analysts highlight the potential long-term benefits for gas-focused midstream companies, given the underlying characteristics of shale gas wells and hydrocarbon streams.
- New bullish coverage initiates with a Buy rating and higher price target, reflecting confidence in Kinetik's overall positioning within the U.S. Midstream sector.
What's in the News
- The owners of the EPIC Crude pipeline—including Kinetik (KNTK), Diamondback Energy (FANG), and Ares Management's (ARES) EPIC Midstream—are considering a sale of the pipeline valued at approximately $3 billion including debt, and have engaged investment bankers to explore suitors (Reuters, 2025-08-25).
- Kinetik Holdings owns an equal stake in the EPIC Crude pipeline alongside Diamondback Energy and EPIC Midstream (Reuters, 2025-08-25).
- From April 1, 2025 to August 6, 2025, Kinetik repurchased 4,052,929 shares, amounting to 6.65% of its shares, for $172.55 million (Key Developments, 2025-08-07).
- Kinetik has now completed its previously announced buyback program, having repurchased a total of 4,247,103 shares, or 7.06%, for $178.31 million since February 27, 2023 (Key Developments, 2025-08-07).
- The potential sale and the recently completed share buyback program represent significant recent strategic actions for Kinetik Holdings (Reuters; Key Developments, 2025-08).
Valuation Changes
Summary of Valuation Changes for Kinetik Holdings
- The Consensus Analyst Price Target has fallen slightly from $53.36 to $51.50.
- The Future P/E for Kinetik Holdings has significantly fallen from 70.25x to 25.41x.
- The Discount Rate for Kinetik Holdings remained effectively unchanged, moving only marginally from 7.71% to 7.70%.
Disclaimer
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