Kinetik Holdings: Market Is Missing The Mark On This Growth And High-Yield Combo

Ronald Ferrie
3.33K Followers

Summary

  • KNTK is deeply undervalued versus peers, despite strong fundamentals and a 7.3% yield, creating a compelling Strong Buy opportunity.
  • The company is set for double-digit EBITDA growth through 2026, driven by new processing plants and robust customer demand in the Delaware basin.
  • KNTK's stock price dislocation is unjustified, as peer midstream stocks have rebounded and technicals suggest a potential near-term rally.
  • Risks remain from global oil supply increases, but long-term growth prospects and committed customers support my bullish outlook.

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Thesis

Kinetik Holdings Inc. (NYSE:KNTK) is a mid-cap midstream provider based in the Delaware basin. The company's stock price has come under extreme pressure since Liberation Day. Ironically, the benefits of owning a highly contracted midstream company appear to have

This article was written by

3.33K Followers
I am a Licensed Professional Engineer who works in the Nuclear Power industry. I use my professional working knowledge of the power/energy industries to aid in evaluating potential equities worthy of long-term investment. I invest in income producing equities and rental real estate properties for cash flow and long-term appreciation. My articles are to serve as a platform for presenting the underlying fundamentals and long-term potential of each equity/business.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of KNTK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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