Is New Institutional Support And Asset Sales Activity Altering The Investment Case For Kinetik Holdings (KNTK)?

• In the past quarter, Brave Warrior Advisors disclosed a new position of about 1.6 million Kinetik Holdings shares, while Jefferies began covering the company with a positive outlook tied to recent infrastructure milestones such as Kings Landing entering full commercial service.
• Together with Kinetik’s monetization of its EPIC Crude stake for over US$500 million to reduce revolver debt, these moves highlight increasing institutional confidence and a clearer path toward balance sheet improvement and volume growth.
• Next, we’ll examine how Jefferies’ upbeat coverage and Kings Landing’s commercial ramp influence Kinetik’s existing investment narrative and risk profile.

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Kinetik Holdings Investment Narrative Recap

To own Kinetik, you need to believe in the long term value of its Permian midstream footprint and the cash flows from fee based contracts, while accepting commodity and basin concentration risk. The recent Brave Warrior stake, Jefferies’ coverage, and the EPIC Crude monetization modestly improve the near term balance sheet and sentiment, but do not remove the key short term risk around softer upstream activity and producer driven volume uncertainty.

The Kings Landing ramp to full commercial service sits at the center of the current catalyst story, because it expands sour gas processing capacity in Northern Delaware exactly where Kinetik is most exposed. How effectively Kings Landing fills over the next few years will help determine whether the company’s volume growth potential outweighs concerns about high capital intensity, leverage, and ongoing cost inflation in power and compression.

Yet while this infrastructure progress is encouraging, investors still need to be aware that...

Read the full narrative on Kinetik Holdings (it's free!)

Kinetik Holdings' narrative projects $2.8 billion revenue and $167.1 million earnings by 2028.

Uncover how Kinetik Holdings' forecasts yield a $44.77 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community currently see Kinetik’s fair value between US$44.77 and US$65.85, underscoring how far opinions can spread. You should weigh those views against the company’s concentration in the Northern Delaware Basin and what that means if producer activity remains uneven.

Explore 3 other fair value estimates on Kinetik Holdings - why the stock might be worth just $44.77!

Build Your Own Kinetik Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Kinetik Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Kinetik Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Kinetik Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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