Kinetik Holdings: A Long-Term Investment Opportunity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy KNTK?
Source: Fool
- Dividend Appeal: As of February 5, Kinetik boasts a dividend yield of 7.85% and recently announced a 4% increase in its quarterly payout to $0.81 per share, demonstrating the company's commitment to shareholder returns and boosting investor confidence.
- Price Recovery: Despite a 36% decline over the past year, Kinetik's stock has surged 14% in the last month, indicating a potential recovery that is attracting attention from long-term investors with higher risk tolerance.
- Project Potential: The ECCC pipeline project is expected to yield results as early as the second quarter, and if natural gas liquids (NGL) volumes remain strong, it could serve as a catalyst for dividend growth, further supporting the company's long-term growth outlook.
- Acquisition Speculation: Market chatter suggests Kinetik could be a takeover target for larger pipeline companies, and while such rumors alone are not a solid investment rationale, a successful transaction could provide additional upside for investors.
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Analyst Views on KNTK
Wall Street analysts forecast KNTK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KNTK is 45.27 USD with a low forecast of 40.00 USD and a high forecast of 55.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 40.820
Low
40.00
Averages
45.27
High
55.00
Current: 40.820
Low
40.00
Averages
45.27
High
55.00
About KNTK
Kinetik Holdings Inc. is an integrated Permian-to-Gulf Coast midstream company operating in the Delaware Basin. It offers comprehensive gathering, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water. Its segments include Midstream Logistics and Pipeline Transportation. The Midstream Logistics segment operates under three streams: gas gathering and processing, crude oil gathering, stabilization and storage services, and produced water gathering and disposal. The Midstream Logistics segment provides gas gathering and processing services with over 3,900 miles of low and high-pressure steel pipeline located throughout the Delaware Basin, including over 2,300 miles of gas pipeline. The Pipeline Transportation segment consists of equity investment interests in three Permian Basin pipelines that access various points along the United States Gulf Coast, Kinetik NGL Pipeline and Delaware Link Pipeline.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Kinetik Holdings: Investment Opportunity in High-Yield Pipeline Stock
- Attractive Dividend Yield: As of February 5, Kinetik Holdings boasts a dividend yield of 7.85%, and despite a 36% decline in stock price over the past year, the company recently announced a 4% increase in its quarterly payout to $0.81 per share, indicating a strong commitment to shareholder returns that may appeal to long-term investors.
- Project-Driven Growth: Kinetik is advancing the ECCC pipeline project, expected to yield results as early as the second quarter; if natural gas liquids (NGL) volumes remain robust, this could serve as a catalyst for dividend growth, enhancing the company's long-term investment appeal.
- Value Investment Opportunity: Despite Kinetik's poor performance over the past year, its current stock price trades at a discount to peers, highlighting its potential as a value investment, which has attracted interest from some professional market participants who speculate it could be a takeover target for larger pipeline companies.
- Market Rebound Signs: Kinetik's stock has surged 14% over the past month, and while concerns about a value trap persist, its stable cash flow and dividend payment capabilities make it a viable option for risk-tolerant investors.
See More
Kinetik Holdings: A Long-Term Investment Opportunity
- Dividend Appeal: As of February 5, Kinetik boasts a dividend yield of 7.85% and recently announced a 4% increase in its quarterly payout to $0.81 per share, demonstrating the company's commitment to shareholder returns and boosting investor confidence.
- Price Recovery: Despite a 36% decline over the past year, Kinetik's stock has surged 14% in the last month, indicating a potential recovery that is attracting attention from long-term investors with higher risk tolerance.
- Project Potential: The ECCC pipeline project is expected to yield results as early as the second quarter, and if natural gas liquids (NGL) volumes remain strong, it could serve as a catalyst for dividend growth, further supporting the company's long-term growth outlook.
- Acquisition Speculation: Market chatter suggests Kinetik could be a takeover target for larger pipeline companies, and while such rumors alone are not a solid investment rationale, a successful transaction could provide additional upside for investors.
See More
Analysis of Dividend Growth Potential in Pipeline Companies
- Dividend Growth Trend: Oneok recently raised its dividend by 4%, pushing its yield to 5.5%, and has a track record of over 25 years of stable or increasing dividends, with an expected annual growth of 3% to 4%, enhancing its attractiveness and supporting investor confidence.
- Acquisitions and Integration: Through three large-scale acquisitions in recent years, Oneok anticipates capturing hundreds of millions in cost savings and commercial synergies, which will not only enhance its financial flexibility but also provide robust support for future dividend growth.
- Kinetik Dividend Increase: Kinetik Holdings recently declared a dividend that is 4% higher than the previous quarter, boosting its yield to 8%, marking the second consecutive year of a 4% dividend increase, demonstrating strong cash flow and ongoing growth potential.
- Williams' Expansion Plans: Williams recently hiked its dividend by 5%, raising its yield to 3.2%, and has a substantial backlog of organic expansion projects expected to come online by 2030, which will provide ample momentum for future dividend growth.
See More
Three Pipeline Companies Continue Dividend Increases
- Oneok Dividend Growth: Oneok recently raised its dividend by 4%, pushing its yield to 5.5%, and has demonstrated a nearly 100% growth in dividends over the past decade, indicating strong stability in payments and an expectation to continue increasing by 3% to 4% annually.
- Kinetik Holdings Performance: Kinetik Holdings declared its latest dividend 4% higher than the previous quarter, boosting its yield to 8%, marking its second consecutive year of 4% dividend growth, reflecting the effectiveness of its capital recycling strategy and potential for further increases.
- Williams Stability: Williams increased its dividend by 5%, raising its yield to 3.2%, and has paid quarterly dividends since 1974; while it hasn't raised its dividend every year, it has been growing at a mid-single-digit rate recently, showcasing a strong financial foundation and future growth potential.
- Investment Opportunities: Oneok, Kinetik, and Williams offer high-yielding dividends expected to continue growing, making them attractive long-term investments, especially in the current market environment, where investors can benefit from stable cash flows and potential capital appreciation.
See More
Cushing Asset Management Increases Stake in Kinetik Holdings
- Share Increase: Cushing Asset Management significantly increased its stake in Kinetik Holdings by purchasing 855,000 shares, bringing its total holdings to 1.8 million shares, reflecting confidence in the company's future performance.
- AUM Impact: This acquisition raises Kinetik Holdings' representation to 3.8% of Cushing's assets under management, indicating its significant position within the fund's investment portfolio.
- Price Volatility: Despite Kinetik's stock price declining by 35.5% over the past year, the company recently raised its quarterly dividend by 4% to $0.81, demonstrating a positive cash flow performance even in challenging conditions.
- Market Comparison: Kinetik's 8.1% dividend yield is substantially higher than the S&P 500's 1.1%, which may attract more investors seeking stable income from the stock.
See More
Winter Storm Fern to Impact Natural Gas Production, Excelerate Energy Stock Soars 28%
- Natural Gas Price Surge: Natural gas prices have jumped 70% in less than two weeks, reaching record highs, which has driven Excelerate Energy (EE) stock up 28% this month, reflecting strong market demand and renewed investor confidence in natural gas supply.
- Production Loss Estimates: Natural gas production is projected to decrease by 10 to 80 billion cubic feet, similar to the 30 billion cubic feet loss caused by Winter Storm Uri in 2021, potentially leading to supply tightness and impacting price volatility in the market.
- Utility Challenges: Heavy snow and freezing rain could lead to widespread power outages for utilities like Exelon (EXC) and NRG Energy (NRG), with analysts projecting a 42% upside for NRG's stock price, indicating confidence in its recovery capabilities amid adverse weather conditions.
- Infrastructure Investment Opportunities: As concerns over grid reliability increase, companies like Quanta Power Services (PWR) may benefit from power line repairs and infrastructure investments, with analysts expecting this to drive long-term investment growth in the energy sector.
See More
Kinetik Holdings: Investment Opportunity in High-Yield Pipeline Stock
- Attractive Dividend Yield: As of February 5, Kinetik Holdings boasts a dividend yield of 7.85%, and despite a 36% decline in stock price over the past year, the company recently announced a 4% increase in its quarterly payout to $0.81 per share, indicating a strong commitment to shareholder returns that may appeal to long-term investors.
- Project-Driven Growth: Kinetik is advancing the ECCC pipeline project, expected to yield results as early as the second quarter; if natural gas liquids (NGL) volumes remain robust, this could serve as a catalyst for dividend growth, enhancing the company's long-term investment appeal.
- Value Investment Opportunity: Despite Kinetik's poor performance over the past year, its current stock price trades at a discount to peers, highlighting its potential as a value investment, which has attracted interest from some professional market participants who speculate it could be a takeover target for larger pipeline companies.
- Market Rebound Signs: Kinetik's stock has surged 14% over the past month, and while concerns about a value trap persist, its stable cash flow and dividend payment capabilities make it a viable option for risk-tolerant investors.
See More
Kinetik Holdings: A Long-Term Investment Opportunity
- Dividend Appeal: As of February 5, Kinetik boasts a dividend yield of 7.85% and recently announced a 4% increase in its quarterly payout to $0.81 per share, demonstrating the company's commitment to shareholder returns and boosting investor confidence.
- Price Recovery: Despite a 36% decline over the past year, Kinetik's stock has surged 14% in the last month, indicating a potential recovery that is attracting attention from long-term investors with higher risk tolerance.
- Project Potential: The ECCC pipeline project is expected to yield results as early as the second quarter, and if natural gas liquids (NGL) volumes remain strong, it could serve as a catalyst for dividend growth, further supporting the company's long-term growth outlook.
- Acquisition Speculation: Market chatter suggests Kinetik could be a takeover target for larger pipeline companies, and while such rumors alone are not a solid investment rationale, a successful transaction could provide additional upside for investors.
See More
Analysis of Dividend Growth Potential in Pipeline Companies
- Dividend Growth Trend: Oneok recently raised its dividend by 4%, pushing its yield to 5.5%, and has a track record of over 25 years of stable or increasing dividends, with an expected annual growth of 3% to 4%, enhancing its attractiveness and supporting investor confidence.
- Acquisitions and Integration: Through three large-scale acquisitions in recent years, Oneok anticipates capturing hundreds of millions in cost savings and commercial synergies, which will not only enhance its financial flexibility but also provide robust support for future dividend growth.
- Kinetik Dividend Increase: Kinetik Holdings recently declared a dividend that is 4% higher than the previous quarter, boosting its yield to 8%, marking the second consecutive year of a 4% dividend increase, demonstrating strong cash flow and ongoing growth potential.
- Williams' Expansion Plans: Williams recently hiked its dividend by 5%, raising its yield to 3.2%, and has a substantial backlog of organic expansion projects expected to come online by 2030, which will provide ample momentum for future dividend growth.
See More
Three Pipeline Companies Continue Dividend Increases
- Oneok Dividend Growth: Oneok recently raised its dividend by 4%, pushing its yield to 5.5%, and has demonstrated a nearly 100% growth in dividends over the past decade, indicating strong stability in payments and an expectation to continue increasing by 3% to 4% annually.
- Kinetik Holdings Performance: Kinetik Holdings declared its latest dividend 4% higher than the previous quarter, boosting its yield to 8%, marking its second consecutive year of 4% dividend growth, reflecting the effectiveness of its capital recycling strategy and potential for further increases.
- Williams Stability: Williams increased its dividend by 5%, raising its yield to 3.2%, and has paid quarterly dividends since 1974; while it hasn't raised its dividend every year, it has been growing at a mid-single-digit rate recently, showcasing a strong financial foundation and future growth potential.
- Investment Opportunities: Oneok, Kinetik, and Williams offer high-yielding dividends expected to continue growing, making them attractive long-term investments, especially in the current market environment, where investors can benefit from stable cash flows and potential capital appreciation.
See More
Cushing Asset Management Increases Stake in Kinetik Holdings
- Share Increase: Cushing Asset Management significantly increased its stake in Kinetik Holdings by purchasing 855,000 shares, bringing its total holdings to 1.8 million shares, reflecting confidence in the company's future performance.
- AUM Impact: This acquisition raises Kinetik Holdings' representation to 3.8% of Cushing's assets under management, indicating its significant position within the fund's investment portfolio.
- Price Volatility: Despite Kinetik's stock price declining by 35.5% over the past year, the company recently raised its quarterly dividend by 4% to $0.81, demonstrating a positive cash flow performance even in challenging conditions.
- Market Comparison: Kinetik's 8.1% dividend yield is substantially higher than the S&P 500's 1.1%, which may attract more investors seeking stable income from the stock.
See More
Winter Storm Fern to Impact Natural Gas Production, Excelerate Energy Stock Soars 28%
- Natural Gas Price Surge: Natural gas prices have jumped 70% in less than two weeks, reaching record highs, which has driven Excelerate Energy (EE) stock up 28% this month, reflecting strong market demand and renewed investor confidence in natural gas supply.
- Production Loss Estimates: Natural gas production is projected to decrease by 10 to 80 billion cubic feet, similar to the 30 billion cubic feet loss caused by Winter Storm Uri in 2021, potentially leading to supply tightness and impacting price volatility in the market.
- Utility Challenges: Heavy snow and freezing rain could lead to widespread power outages for utilities like Exelon (EXC) and NRG Energy (NRG), with analysts projecting a 42% upside for NRG's stock price, indicating confidence in its recovery capabilities amid adverse weather conditions.
- Infrastructure Investment Opportunities: As concerns over grid reliability increase, companies like Quanta Power Services (PWR) may benefit from power line repairs and infrastructure investments, with analysts expecting this to drive long-term investment growth in the energy sector.
See More
