Kinetik (KNTK) Seen as “Overly Discounted” by Jefferies After Weak 2025 Performance

Core Viewpoint - Kinetik Holdings Inc. (NYSE:KNTK) is perceived as "overly discounted" following a disappointing fiscal 2025, despite strong third-quarter earnings and positive growth prospects in the midstream sector [2][3]. Financial Performance - Kinetik reported total operating revenues of $463.9 million for the third quarter, reflecting a 17% increase from the previous year [3]. - Product revenue reached $357.6 million, up from $290.4 million in the same quarter last year [3]. - The company achieved a distributable cash flow of $158 million and free cash flow of $50.9 million, resulting in a dividend coverage ratio of 1.3x [4]. Operational Highlights - The Kings Landing facility officially entered full commercial service, enhancing processing capacity in New Mexico [3]. - Kings Landing is operating above 100 million cubic feet per day, aligning with the company's expectations [3]. Analyst Insights - Jefferies initiated coverage on Kinetik with a Buy rating and a price target of $41, anticipating an adjusted EBITDA growth of 8% through 2030 [2].