Kinetik (NYSE:KNTK) Posts Quarterly Earnings Results, Beats Expectations By $0.45 EPS

Key Points

• Kinetik reported quarterly EPS of $0.64, beating the $0.19 consensus estimate by $0.45 and rising from $0.33 a year earlier. Quarterly revenue increased 36.3% year over year.
• Kinetik shares traded at $48.26, near their 52-week high of $52.54, while the stock has an average analyst rating of “Moderate Buy” and a consensus price target of $51.40.
• Institutional investors and hedge funds own 21.11% of Kinetik, with several major investors—including Alyeska Investment Group and Barclays—recently increasing their positions.

Kinetik (NYSE:KNTK - Get Free Report) released its quarterly earnings results on Wednesday. The company reported $0.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.19 by $0.45, Zacks reports. Kinetik had a negative return on equity of 36.36% and a net margin of 28.58%.The business's quarterly revenue was up 36.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.33 earnings per share.

Kinetik Stock Performance

Shares of NYSE KNTK traded down $0.42 during mid-day trading on Wednesday, hitting $48.26. 969,946 shares of the stock were exchanged, compared to its average volume of 869,552. Kinetik has a twelve month low of $31.33 and a twelve month high of $52.54. The stock's fifty day simple moving average is $48.18 and its two-hundred day simple moving average is $46.49. The company has a market cap of $7.84 billion, a P/E ratio of 18.37, a PEG ratio of 1.92 and a beta of 0.56.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Scotiabank restated an "outperform" rating and issued a $52.00 target price (up from $51.00) on shares of Kinetik in a report on Tuesday, May 12th. Weiss Ratings raised shares of Kinetik from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, July 6th. Wall Street Zen cut shares of Kinetik from a "sell" rating to a "strong sell" rating in a report on Sunday, May 17th. JPMorgan Chase & Co. lifted their price objective on Kinetik from $54.00 to $57.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 14th. Finally, Zacks Research raised Kinetik from a "hold" rating to a "strong-buy" rating in a report on Monday, July 27th. Three analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $51.40.

Hedge Funds Weigh In On Kinetik

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Dimensional Fund Advisors LP lifted its position in Kinetik by 3.3% during the 3rd quarter. Dimensional Fund Advisors LP now owns 680,695 shares of the company's stock worth $29,099,000 after buying an additional 21,544 shares in the last quarter. Alyeska Investment Group L.P. increased its holdings in shares of Kinetik by 64.8% in the fourth quarter. Alyeska Investment Group L.P. now owns 652,228 shares of the company's stock valued at $23,513,000 after purchasing an additional 256,500 shares in the last quarter. Barclays PLC raised its position in Kinetik by 50.1% in the 4th quarter. Barclays PLC now owns 473,980 shares of the company's stock worth $17,087,000 after purchasing an additional 158,279 shares during the last quarter. State of Wisconsin Investment Board lifted its holdings in Kinetik by 4.5% during the 4th quarter. State of Wisconsin Investment Board now owns 126,479 shares of the company's stock worth $4,560,000 after buying an additional 5,413 shares in the last quarter. Finally, Man Group plc increased its stake in shares of Kinetik by 37.0% in the 3rd quarter. Man Group plc now owns 99,275 shares of the company's stock valued at $4,243,000 after buying an additional 26,826 shares during the period. Institutional investors and hedge funds own 21.11% of the company's stock.

About Kinetik

Kinetik NYSE: KNTK is a publicly listed midstream energy company focused on the development, operation and management of natural gas infrastructure across the United States. The company's core business activities include the gathering, compression, processing, storage and transportation of natural gas, serving producers, utilities and industrial consumers. By integrating a suite of midstream services under a single platform, Kinetik aims to provide efficient, cost-effective and reliable solutions across the natural gas value chain.

The company was established in 2021 when assets were acquired from Talen Energy by a subsidiary of ArcLight Capital Partners, forming a comprehensive portfolio of pipelines, compression facilities and underground storage assets.

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