Kinetik Holdings Inc

Kinetik Holdings Inc. reported the strongest quarterly results in company history on August 5 and raised its full-year 2026 guidance, while launching a string of expansion decisions that stretch out to 2028. The Permian-focused midstream operator posted net income, including noncontrolling interest, of $123.1 million for the quarter ended June 30, with Adjusted EBITDA climbing to $280.8 million. Its largest unit, the Midstream Logistics segment, grew Adjusted EBITDA 35% year over year to $204.8 million even though processed natural gas volumes held flat at 1.74 Bcf/d, a figure that came despite roughly 250 million cubic feet per day of gas shut in because of weak Waha-area pricing. Kinetik raised its full-year 2026 Adjusted EBITDA guidance to a range of $1.04 billion to $1.1 billion, a 7% bump from the guidance it issued in February, and lifted its 2026 capital expenditure guidance to approximately $560 million to cover the roughly $260 million Kings Landing II sour gas processing project, accelerated customer development, long-lead equipment for another processing expansion, and right-of-way work on the ECCC Pipeline. The Pipeline Transportation segment posted Adjusted EBITDA of $83.0 million, down 14% year over year, which the company attributes to last year's divestiture of its equity stake in EPIC Crude Holdings, and Kinetik expects gas curtailments to keep running at an average of 25 million cubic feet per day through the second half of 2026 while modeling Waha Hub natural gas at negative $0.26 per MMBtu for the full year. Net debt stood at $3.94 billion at quarter end, putting the leverage ratio at 3.85 times, and the stock trades at a forward price-to-earnings ratio of 22.12 as of September 16, with hedge fund ownership rising from 25 funds to 29 and short interest at 9.25% of float.

Kinetik Holdings Inc. is exploring strategic alternatives, including a potential sale, according to a September 9 Bloomberg report, as midstream assets become increasingly attractive to infrastructure and energy buyers. The company's improving financial performance could strengthen its negotiating position, with second-quarter adjusted EBITDA rising to $280.8 million from $251.2 million in the first quarter and free cash flow reaching $105.2 million. Management also raised its full-year 2026 adjusted EBITDA guidance to between $1.04 billion and $1.10 billion, with the $1.07 billion midpoint approximately 7% above the midpoint of its original outlook. The potential sale comes amid strong midstream M&A demand, highlighted by Enbridge's agreement to acquire Tallgrass Energy's oil business for $2.55 billion and ONEOK's agreement to acquire Brazos Midstream's Midland Basin assets for $4.43 billion. Kinetik operates more than 4,600 miles of pipelines and owns processing and compression infrastructure serving the Delaware Basin, and its predominantly fee-based business model could appeal to buyers seeking predictable cash flows. The stock surged more than 5% in after-hours trading following reports of a potential transaction, though the company has also increased its 2026 capital expenditure guidance to approximately $560 million, which could raise the capital a prospective buyer would need to commit.

Macy's reported a second-quarter revenue beat and raised its full-year guidance for net sales, comparable sales and earnings per share, though it was unclear whether its quarterly EPS of 40 cents was comparable to the 37 cent LSEG consensus estimate, and shares slipped 1.6%. Meta Platforms added 1.4% after an upgrade at JPMorgan, which sees meaningful upside potential as Meta rolls out its artificial intelligence models and products, while Apple rose 1% a day after unveiling its foldable iPhone and other products. Novartis rose nearly 2% after Reuters reported a major shareholder called for an overhaul of the drugmaker's board to boost corporate governance, following three drug trial setbacks earlier this week. AeroVironment jumped more than 5% after first-quarter adjusted earnings of 59 cents per share and revenue of $480 million trounced LSEG estimates of 25 cents a share on $456 million, while American Eagle Outfitters fell more than 15% on a 1% second-quarter comparable sales decline and current-quarter operating income guidance of $110 million to $115 million, below the $124.3 million StreetAccount consensus. Enbridge slid nearly 3% after announcing it would acquire Tallgrass Energy's crude transportation business for $2.55 billion, and Kinetik moved 4.6% higher following a Bloomberg News report that it is exploring options, including a potential sale.

Kinetik Holdings is in the early stages of exploring options, including a potential sale, according to a Bloomberg report. The energy pipeline company is working with advisors to prepare for a potential sale process that could start within weeks, though no final decision has been made and it could decide to remain independent. Kinetik controls a large network of gas gathering and processing infrastructure in the Permian Basin and also holds crude oil and water-gathering assets. Blackstone is the company's largest shareholder, with a roughly 15% stake as of midyear, according to data compiled by Bloomberg. In February, the Financial Times reported that Kinetik was considering a sale following an approach from Western Midstream Partners. Shares of Kinetik rose 5.1% in post-market trading Wednesday following the report.

Kinetik Holdings raised its full-year 2026 Adjusted EBITDA guidance to a range of $1.04 billion to $1.10 billion, an increase of $70 million at the midpoint, while reporting record second-quarter results. The company posted second-quarter Adjusted EBITDA of $281 million, distributable cash flow of $195 million, and free cash flow of $105 million, with Midstream Logistics EBITDA rising 35% year over year to $205 million. Kinetik also lifted its 2026 capital expenditure guidance to approximately $560 million to support higher volumes and customer development, and expanded its Kings Landing 2 processing project to 300 million cubic feet per day with service expected in mid-2028. The company expects to exit 2026 with processed gas volumes approaching 2.2 billion cubic feet per day and anticipates leverage to decline by year-end while remaining within its 3.5 to 4.0 times target range.

Kinetik Holdings Inc. reported quarterly earnings of $0.64 per share, beating the Zacks Consensus Estimate of $0.19 per share by over 236 percent. Revenue for the quarter ended June 2026 reached $581.44 million, surpassing the consensus estimate by nearly 38 percent and up from $426.74 million a year ago. The company, which belongs to the Zacks Oil and Gas - Field Services industry, has topped consensus EPS estimates twice in the last four quarters. Shares have gained about 35 percent year to date, outperforming the S&P 500's 13 percent advance. The current Zacks Rank for the stock is 3, or Hold, with consensus estimates for the coming quarter at $0.30 per share on $509.24 million in revenue.

Kinetik Holdings Inc. has appointed Craig Harris to its Board of Directors, effective June 23, 2026. Harris brings more than 30 years of energy industry experience, most recently serving as a Senior Managing Director within Blackstone's credit business from October 2022 to March 2026. He previously held senior leadership roles at 3Bear Energy, Enable Midstream Partners, Columbia Midstream Group, and El Paso Corporation. Kinetik President and CEO Jamie Welch said Harris's extensive midstream experience and strategic perspective will strengthen the board as the company advances its growth and value creation objectives.