Raymond James Upgrades Kinetik (KNTK) to Outperform, Sets $46 Target

Core Viewpoint - Kinetik Holdings Inc. (NYSE: KNTK) has been upgraded to Outperform by Raymond James, with a price target set at $46, reflecting positive momentum in the midstream sector as it heads into 2026 [2]. Financial Performance - Kinetik reported total operating revenue of $463.9 million for the third quarter, marking a 17% increase from the previous year [3]. - Product revenue rose to $357.6 million, up from $290.4 million in the same quarter last year [3]. - The company generated distributable cash flow of $158 million and free cash flow of $50.9 million for the quarter, indicating strong cash generation capabilities [5]. Operational Milestones - The Kings Landing project has officially entered full commercial service, contributing additional processing capacity in New Mexico [4]. - The project has been consistently operating above 100 million cubic feet per day, aligning with the company's internal expectations [4]. Industry Context - The midstream sector is entering 2026 with increased expectations following a constructive performance in 2025, shifting focus to companies' ability to convert favorable conditions into measurable cash flow [2].