KINETIK HOLDINGS ATTRACTS TAKEOVER BID FROM WESTERN MIDSTREAM PARTNERS SUPPORTED BY OCCIDENTAL PETROLEUM - FT
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15 hours ago
0mins
Should l Buy KNTK?
Source: moomoo
- Company Overview: Kinetik Holdings has received a stake over interest from Occidental Petroleum-backed Western Midstream Partners.
- Investment Context: This move indicates a strategic partnership or investment opportunity in the energy sector, particularly in petroleum-related ventures.
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Analyst Views on KNTK
Wall Street analysts forecast KNTK stock price to rise
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 44.540
Low
40.00
Averages
45.27
High
55.00
Current: 44.540
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.
- Earnings Beat: Occidental Petroleum reported adjusted earnings per share of 31 cents for Q4, surpassing the consensus estimate of 18 cents, indicating strong operational performance that is likely to boost investor confidence.
- Production Capacity Increase: The company achieved a daily production of 1.481 million barrels of oil equivalent, exceeding the high end of its guidance, which signifies a notable enhancement in production efficiency and strengthens its competitive position in the market.
- Debt Reduction: Following the completion of the OxyChem sale, Occidental has reduced its debt by $5.8 billion since mid-December 2025, bringing total debt to $15 billion, thereby improving its financial health and enhancing future investment capabilities.
- Geopolitical Impact: Elevated crude prices due to escalating tensions in Iran have driven oil stocks higher, with Occidental's shares rising 5.31%, reflecting market optimism regarding its future performance amidst geopolitical uncertainties.
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- Positive Market Reaction: Kinetik Holdings (KNTK) saw an 8.6% pre-market increase on Thursday, reflecting investor confidence in the company's potential sale and future growth prospects.
- Sale Process Initiation: According to the Financial Times, Kinetik is preparing a sale process to gauge interest from strategic and infrastructure buyers, which could provide new capital and resource allocation opportunities for the company.
- Significant Growth Potential: Enervus managing director Andrew Gillick highlighted that the Delaware Basin is one of the few remaining growth areas, with increasing demand for natural gas, providing strong support and market outlook for Kinetik's operations.
- Complex Shareholder Structure: Kinetik was formed in 2022 through the merger of Altus Midstream and EagleClaw Midstream, with Blackstone retaining an 18% stake, while Occidental Petroleum (OXY) owns about a third of Western Midstream (WES), indicating its significant position in the industry.
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- Company Overview: Kinetik Holdings has received a stake over interest from Occidental Petroleum-backed Western Midstream Partners.
- Investment Context: This move indicates a strategic partnership or investment opportunity in the energy sector, particularly in petroleum-related ventures.
See More
- 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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- 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.
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