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Investing.com - Goldman Sachs reduced its price target on Kinetik Holdings Inc. (NYSE:KNTK) to $47.00 from $49.00 while maintaining a Buy rating following the company’s second-quarter 2025 earnings report. The stock, currently trading near its 52-week low of $39.33, appears undervalued according to InvestingPro analysis, which offers comprehensive valuation metrics and 10 additional key insights about the company.
The midstream energy company, with a market capitalization of $6.78 billion and an impressive 19.71% revenue growth over the last twelve months, reported results that were relatively in line with expectations, with slightly better segment performance offset by higher corporate costs, according to Goldman Sachs.
Kinetik lowered its 2025 EBITDA guidance to $1,030-1,090 million from the previous $1,090-1,150 million, citing ongoing cost and commodity margin headwinds coupled with a modest delay to its Kings Landing 1 processing project.
The company maintained its fourth-quarter 2025 EBITDA guidance of $300 million, representing $1.2 billion on an annualized basis, though Goldman Sachs forecasts a slightly lower $288 million.
Despite the reduced outlook, Goldman Sachs sees a reasonable growth trajectory as Kinetik captures a larger share of Northern Delaware production and implements cost-saving initiatives, particularly NGL contract rolls beginning next year on Energy Transfer’s Lone Star pipeline.
In other recent news, Kinetik Holdings Inc. reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.33, which exceeded analysts’ expectations of $0.25 by 32%. Despite this positive earnings surprise, the company’s revenue was reported at $426.74 million, falling short of the anticipated $436.91 million. The earnings results highlight a mixed financial performance for Kinetik Holdings, with stronger-than-expected profitability but lower-than-expected revenue. These developments are significant for investors monitoring the company’s financial health and market performance. The earnings data reflect recent activities and decisions within the company that have impacted its financial outcomes. Investors and analysts will likely continue to assess Kinetik Holdings’ strategies and market conditions moving forward. Additionally, the earnings call provided insights into the company’s operational strategies and future outlook, although specific details on these were not disclosed in the report.
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