Core Viewpoint - Cushing Asset Management significantly increased its stake in Kinetik Holdings by purchasing 855,000 shares, reflecting confidence in the company's future performance despite recent stock declines [2][4][8]. Group 1: Transaction Details - Cushing Asset Management's recent SEC filing revealed an increase in its Kinetik Holdings stake to 1.8 million shares, valued at $66.5 million as of quarter-end [4][8]. - The total position now represents 3.8% of the fund's assets under management (AUM), which amounts to $1.7 billion [4][8]. - The purchase raised the quarter-end position value by $24.2 million, influenced by both share purchases and price movements [4]. Group 2: Company Overview - Kinetik Holdings operates as a midstream company in the Texas Delaware Basin, providing gathering, transportation, compression, processing, and treating services for oil and gas producers [7][11]. - The company has a fee-based midstream business model, focusing on generating revenue primarily from long-term contracts with producers [7][11]. - As of January 26, 2026, Kinetik Holdings had a market capitalization of $6.4 billion, with a revenue of $1.72 billion and a dividend yield of 7.9% [6]. Group 3: Market Performance - Kinetik's stock has experienced a decline of 35.5% over the past year, while the S&P 500 has returned 15.4% during the same period [9]. - Despite the stock's disappointing performance, Kinetik recently raised its quarterly dividend by 4% to $0.81, resulting in an 8.1% dividend yield, significantly higher than the S&P 500's yield of 1.1% [9].

Company Overview - Kinetik Holdings Inc. is a midstream energy company focused on providing essential infrastructure for the movement and processing of hydrocarbons in the Texas Delaware Basin [5] - The company offers gathering, transportation, compression, processing, and treating services for natural gas, natural gas liquids, crude oil, and water [7] - Kinetik's revenue for the trailing twelve months (TTM) is $1.7 billion, with a net income of $125.5 million and a dividend yield of 8.5% [4] Recent Developments - Brave Warrior Advisors disclosed a new position in Kinetik Holdings, acquiring 1.6 million shares valued at approximately $68.8 million as of September 30 [2][3] - This new position represents 1.6% of Brave Warrior's 13F reportable assets under management [3] Financial Performance - Kinetik reported third-quarter adjusted EBITDA of $242.6 million and distributable cash flow of $158.5 million, with free cash flow reaching $50.9 million despite increased capital spending [8] - The company has maintained full-year EBITDA guidance close to $1 billion, indicating potential for multi-year volume growth [9] Market Position - Kinetik's shares are currently priced at $37.14, reflecting a 34% decline over the past year, contrasting with the S&P 500's 13% increase during the same period [3] - The company is facing challenges such as volatility in Permian gas markets and lower producer activity, but continues to generate stable cash flow and expand processing capacity [6]