Kinetik holdings sees $188 million stock sale by major owner

Published 07/06/2025, 02:46
Kinetik holdings sees $188 million stock sale by major owner

Kinetik Holdings Inc. (NASDAQ:KNTK), a $6.91 billion market cap company currently trading at high earnings multiples, recently witnessed a significant transaction involving the sale of its Class A Common Stock by a major shareholder. On June 4, ISQ Global Fund II GP LLC, alongside other related entities, sold 4,262,090 shares at a price of $44.16 per share. This transaction amounted to a total value of approximately $188.2 million. According to InvestingPro data, the company maintains a notable 7.08% dividend yield and has raised its dividend for three consecutive years.

The sale was part of a broader set of transactions reported in the SEC filing. In addition to the stock sale, there was a conversion of Kinetik Holdings Units into Class A Common Stock, although this specific transaction did not involve any monetary exchange. The company’s financial health score is rated as FAIR by InvestingPro, which offers comprehensive analysis through its Pro Research Report, one of 1,400+ detailed company assessments available to subscribers.

The shares were previously held indirectly by Buzzard Midstream LLC, with ISQ Global Fund II GP LLC exercising voting and investment power over these securities. The filing also noted the involvement of other entities such as I Squared Capital, LLC, and ISQ Holdings, LLC, with key figures like Sadek Wahba and Gautam Bhandari associated with these organizations.

Following this transaction, the entities now hold just one share of Kinetik’s Class A Common Stock, reflecting a significant reduction in their stake.

In other recent news, Kinetik Holdings Inc. reported its first-quarter 2025 earnings, which fell short of analysts’ expectations. The company posted earnings per share of $0.05, significantly below the forecasted $0.36, and revenue of $443.26 million, missing the expected $477.05 million. Despite these misses, the company showed a year-over-year growth in adjusted EBITDA by 7%, reaching $250 million. In a significant financial move, Kinetik Holdings secured a $1.6 billion senior unsecured revolving credit facility, along with a $1.15 billion term loan credit agreement with Toronto Dominion (Texas) LLC. RBC Capital Markets adjusted Kinetik’s stock price target to $55 from $57, citing commodity headwinds, while maintaining an Outperform rating. Similarly, Citi upgraded Kinetik’s stock rating from Neutral to Buy but lowered the price target to $55, highlighting the company’s growth prospects. Goldman Sachs also reduced the price target to $54 from $61 but maintained a Buy rating, noting that Kinetik’s EBITDA guidance for 2025 suggests a range of $1,090 million to $1,115 million. These developments reflect the company’s strategic direction and the analysts’ cautious optimism amid market uncertainties.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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