Company Overview - Kinetik Holdings Inc. is a midstream energy company with a significant presence in the Texas Delaware Basin, providing critical infrastructure and services to support the energy value chain [6] - The company operates on a contract-driven business model, which allows it to deliver stable cash flows and maintain a high dividend yield of 8.7% [4][6] - Kinetik's revenue for the trailing twelve months (TTM) is reported at $1.72 billion, with a net income of $125.45 million [4] Recent Developments - SIR Capital Management disclosed a sale of 583,116 shares of Kinetik Holdings, reducing its position by approximately $25.98 million during the third quarter [2][3] - Following the sale, SIR Capital's Kinetik position now totals 227,722 shares valued at $9.73 million, representing 0.87% of its 13F reportable assets, down from 3.19% in the previous quarter [2][3] Financial Performance - In the third quarter, Kinetik generated $242.6 million in adjusted EBITDA and $158.5 million in distributable cash flow, with free cash flow reported at $50.9 million [11] - Management revised the full-year 2025 adjusted EBITDA guidance to a range of $965 million to $1.005 billion, citing slower-than-expected volume ramp-ups and ongoing takeaway constraints [11] - The company's net debt stood at approximately $4.15 billion at the end of the quarter, with leverage around 4.3 times adjusted EBITDA, indicating a tight financial position in a weaker commodity environment [11] Market Context - Kinetik's shares were priced at $35.73, reflecting a significant decline of 38% over the past year, underperforming the S&P 500, which increased by about 15% during the same period [3] - The reduction in SIR Capital's stake highlights the importance of execution and balance-sheet discipline in capital-intensive midstream businesses, despite Kinetik's long-term investment thesis remaining intact [10][12]