# Kinetik Holdings (KNTK.US)

Canonical: https://gigainvestors.com/s/KNTK

Analysis as of: 2026-10-16T07:29:40.621Z. Financial observations: FY2016–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $53.44 per share; close as of 2026-10-15.

Estimated value: low $62.83 per share, central $71.49 per share, high $83.02 per share. Buy at or below the central value $71.49 per share. Valuation as of 2026-10-16T07:29:40.621Z; scenarios are not confidence intervals.

Expected annual return: 12.5% at the stated quote. About 12.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 4

- Operating margin variation: 3.86×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.07×

- FY2018: -0.05×

- FY2019: -0.03×

- FY2020: -2.49×

- FY2021: 0.08×

- FY2022: 0.12×

- FY2023: 0.13×

- FY2024: 0.12×

- FY2025: 0.09×

- LTM to Jun 2026: 0.11×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 0.7%

- ROIC, second-lowest year: -5.4%

- Years with nonpositive capital: 2

- Capital spending / revenue: 29.3%

- ROIC including acquisitions, ten-year median: 6.5%

- Typical minus recent gross margin: -7.8 pp

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -5.4%

- FY2017: -0.2%

- FY2018: 0.0%

- FY2019: -2.3%

- FY2020: -23.2%

- FY2021: 1.5%

- FY2022: 5.8%

- FY2023: 5.2%

- FY2024: 29.8%

- FY2025: 4.6%

### economics: pass

- Owner earnings / net income, 5-yr: 1.18×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.5B

- Net income, five-year total: $1.3B

- Return on incremental invested capital: 35.9%

- Working capital / revenue, annual change: -1.3 pp

- Working capital / revenue, final three-year average: 11.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 109.53×

- FY2022: 1.15×

- FY2023: 1.00×

- FY2024: 1.20×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -0.2% vs 5.2%

- Per-share earnings: -0.02 to 7.42 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 27.1%

- Market cap gain: $2.0B

- Cumulative retained earnings: -$788M

- Diluted shares, 5-year annual growth: 27.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value change: $7.44

- Per-share value, starting three-year median: -$0.02

- Per-share value, ending three-year median: $7.42

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 7.1%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Cumulative net income, 10 years: -$116M

- ROIC, first three-year median: -0.2%

- ROIC, last three-year median: 5.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.00

- FY2017: -$0.02

- FY2018: -$1.45

- FY2019: -$1.93

- FY2020: -$61.17

- FY2021: $0.04

- FY2022: $3.25

- FY2023: $7.42

- FY2024: $4.06

- FY2025: $8.39

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -1.1%

- Receivables to sales index (DSRI): 1.88×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 10.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.15×

- Accounting red flags: 1

Chart: Sloan accruals; fiscal year observations.

- FY2016: 0.0%

- FY2017: 0.0%

- FY2018: -3.3%

- FY2019: -12.6%

- FY2020: -34.9%

- FY2021: -6.6%

- FY2022: -8.1%

- FY2023: -3.0%

- FY2024: -5.8%

- FY2025: -1.1%

## Holders

## Price story

Price needs cash profits to shrink 2.8% a year for ten years · sales +6.9%

Story as of 2026-10-16T09:59:01.751Z; price observation 2026-10-15.

Price needs cash profits to shrink 2.8% a year for ten years

- 2026-08-05: Kinetik Reports Record Second Quarter 2026 Results and Raises Full Year 2026 Guidance ([finance.yahoo.com](https://finance.yahoo.com/energy/articles/kinetik-reports-record-second-quarter-203000152.html))

### Sales · FY2025–2026

sales +6.9%; source https://www.sec.gov/Archives/edgar/data/1692787/000169278726000048/apa-20251231.htm; observed 2026-02-26.

- FY2017: $15M 

- FY2018: $571M 

- FY2019: $379M 

- FY2020: $410M 

- FY2021: $662M 

- FY2022: $1.2B 

- FY2023: $1.3B 

- FY2024: $1.5B 

- FY2025: $1.8B 

- FY2026: $1.9B 

### Gross margin · FY2025

gross margin 33.8%; source https://www.sec.gov/Archives/edgar/data/1692787/000169278726000048/apa-20251231.htm; observed 2026-02-26.

- FY2018: 6.8% 

- FY2019: 27.9% 

- FY2020: 29.6% 

- FY2021: 27.9% 

- FY2022: 33.9% 

- FY2023: 36.6% 

- FY2024: 36.3% 

- FY2025: 33.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas midstream; annual sales are USD 1.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1692787/000169278726000048/apa-20251231.htm (filed 2026-02-26); FY2025: revenue 1764389000; grossProfit 595796000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KNTK.US: Kinetik Holdings Inc., through its subsidiaries, operates as a midstream company in the Texas Delaware Basin. The company operates through two segments, Midstream Logistics and Pipeline Transportation. It offers gathering, compression, processing, stabilization, treating, and storage services; transportation services through pipelines; and water gathering and disposal services for companies that produce natural gas, natural gas liquids (NGL), and crude oil. The company also sells condensates, natural gas residue, and NGLs. Kinetik Holdings Inc. was founded in 2017 and is headquartered in Midland, Texas.

### Why customers stay

Margins ranged from 33.8% to 36.6% during 2023–25; it earns 0.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 36.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 36.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1692787/000169278726000048/apa-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 33.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2016,-0.053530349618494476],[2017,-0.0015739854470744503],[2018,0],[2019,-0.023300789455685936],[2020,-0.23188572222450735],[2021,0.014791304355224601],[2022,0.05849542478346005],[2023,0.052027948176890125],[2024,0.29827550065433756],[2025,0.04570380656541769]]; median 0.007395652177612301. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 28% of cash earnings; earns 35.9% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 0; upkeep 82712000; owner earnings 162328000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 0; upkeep 221579000; cash acquisitions 64770000; owner earnings 156471533.16235974. Growth capex plus acquisitions / owner earnings = 0.4139411092290674.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 48568000; upkeep 280986000; cash acquisitions 363803000; owner earnings 386452000. Growth capex plus acquisitions / owner earnings = 1.0670691314833407.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 0; upkeep 275873000; cash acquisitions 0; owner earnings 292557000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1692787/000169278726000048/apa-20251231.htm (filed 2026-02-26); FY2025: growth capex 147026000; upkeep 382645000; cash acquisitions 0; owner earnings 525928000. Growth capex plus acquisitions / owner earnings = 0.2795553764013325.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Incremental return on capital 0.35935004415664173, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2017,0],[2018,289278000],[2019,289278000],[2020,23124000],[2021,51189000],[2022,41148000],[2023,81352000],[2024,175208000],[2025,500052000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1692787/000169278726000048/apa-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 176005000 USD.

### Are managers owners

Insiders own 7.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KNTK.US SharesStats.PercentInsiders = 7.063999999999999 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 2.8% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate -0.05159094692397587. Price 53.44; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2017-05: $4.86 per share

- 2017-06: $4.87 per share

- 2017-07: $4.86 per share

- 2017-08: $4.86 per share

- 2017-09: $4.88 per share

- 2017-10: $4.85 per share

- 2017-11: $4.83 per share

- 2017-12: $4.86 per share

- 2018-01: $4.85 per share

- 2018-02: $4.86 per share

- 2018-03: $4.90 per share

- 2018-04: $4.89 per share

- 2018-05: $4.92 per share

- 2018-06: $4.95 per share

- 2018-07: $4.98 per share

- 2018-08: $5.14 per share

- 2018-09: $5.08 per share

- 2018-10: $5.04 per share

- 2018-11: $3.82 per share

- 2018-12: $3.87 per share

- 2019-01: $4.05 per share

- 2019-02: $3.06 per share

- 2019-03: $2.95 per share

- 2019-04: $2.53 per share

- 2019-05: $2.29 per share

- 2019-06: $1.86 per share

- 2019-07: $1.61 per share

- 2019-08: $1.16 per share

- 2019-09: $1.42 per share

- 2019-10: $1.10 per share

- 2019-11: $0.97 per share

- 2019-12: $1.43 per share

- 2020-01: $1.04 per share

- 2020-02: $0.73 per share

- 2020-03: $0.38 per share

- 2020-04: $0.38 per share

- 2020-05: $0.35 per share

- 2020-06: $0.32 per share

- 2020-07: $6.78 per share

- 2020-08: $6.58 per share

- 2020-09: $5.56 per share

- 2020-10: $4.83 per share

- 2020-11: $19.56 per share

- 2020-12: $23.73 per share

- 2021-01: $23.72 per share

- 2021-02: $26.47 per share

- 2021-03: $26.24 per share

- 2021-04: $30.00 per share

- 2021-05: $31.49 per share

- 2021-06: $33.76 per share

- 2021-07: $31.93 per share

- 2021-08: $32.59 per share

- 2021-09: $34.52 per share

- 2021-10: $30.91 per share

- 2021-11: $31.69 per share

- 2021-12: $30.66 per share

- 2022-01: $31.52 per share

- 2022-02: $34.00 per share

- 2022-03: $32.51 per share

- 2022-04: $35.58 per share

- 2022-05: $42.02 per share

- 2022-06: $34.14 per share

- 2022-07: $40.68 per share

- 2022-08: $36.87 per share

- 2022-09: $32.58 per share

- 2022-10: $36.78 per share

- 2022-11: $34.03 per share

- 2022-12: $33.08 per share

- 2023-01: $31.29 per share

- 2023-02: $29.75 per share

- 2023-03: $31.30 per share

- 2023-04: $30.80 per share

- 2023-05: $32.53 per share

- 2023-06: $35.14 per share

- 2023-07: $36.00 per share

- 2023-08: $35.11 per share

- 2023-09: $33.75 per share

- 2023-10: $35.44 per share

- 2023-11: $36.36 per share

- 2023-12: $33.40 per share

- 2024-01: $32.52 per share

- 2024-02: $35.32 per share

- 2024-03: $39.87 per share

- 2024-04: $38.34 per share

- 2024-05: $40.99 per share

- 2024-06: $41.44 per share

- 2024-07: $41.48 per share

- 2024-08: $44.24 per share

- 2024-09: $45.26 per share

- 2024-10: $48.67 per share

- 2024-11: $59.02 per share

- 2024-12: $56.71 per share

- 2025-01: $64.43 per share

- 2025-02: $58.34 per share

- 2025-03: $51.94 per share

- 2025-04: $41.34 per share

- 2025-05: $44.54 per share

- 2025-06: $44.05 per share

- 2025-07: $43.38 per share

- 2025-08: $41.83 per share

- 2025-09: $42.74 per share

- 2025-10: $38.51 per share

- 2025-11: $34.68 per share

- 2025-12: $36.05 per share

- 2026-01: $40.91 per share

- 2026-02: $45.49 per share

- 2026-03: $48.41 per share

- 2026-04: $50.54 per share

- 2026-05: $45.95 per share

- 2026-06: $48.34 per share

- 2026-07: $50.57 per share

- 2026-08: $54.83 per share

- 2026-09: $50.20 per share

- 2026-10: $53.44 per share

## Annual estimated value (USD per share)

- FY2023: low $34.01 per share, central $38.70 per share, high $44.95 per share

- FY2024: low $53.19 per share, central $60.53 per share, high $70.29 per share

- FY2025: low $75.46 per share, central $85.86 per share, high $99.71 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:35:25.166Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1692787/000169278726000048/apa-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.