How are energy investors positioned?
In a recent transaction involving Kinetik Holdings Inc. (NASDAQ:KNTK), several significant stakeholders, including ISQ Global Fund II GP LLC, I Squared Capital, LLC, and ISQ Holdings, LLC, executed a substantial sale of the company’s Class A common stock. The sale, which took place on March 4, 2025, involved 3,952,431 shares at a price of $55.63 per share, amounting to a total value of approximately $219.87 million. The transaction comes as the company, currently valued at $8.1 billion, has demonstrated strong performance with a 67.5% return over the past year. According to InvestingPro analysis, KNTK is trading near its Fair Value, with 12 additional exclusive insights available to subscribers.
These entities are recognized as major investors with a substantial influence on the company’s stock, holding more than ten percent of Kinetik Holdings. The shares were indirectly owned through Buzzard Midstream LLC, with ISQ Global Fund II GP LLC exercising voting and investment power over the securities. Following the transaction, the investors now hold 1,044,520 shares.
The sale was conducted under indirect ownership, as explained in the footnotes accompanying the filing. Both Sadek Wahba and Gautam Bhandari, members of ISQ Holdings, have been identified as part of the ownership structure, although they disclaim beneficial ownership except for their pecuniary interests.
In other recent news, Kinetik Holdings Inc. reported its fourth-quarter 2024 earnings, which fell short of analysts’ expectations. The company posted an earnings per share (EPS) of $0.01, significantly below the forecasted $0.48, and reported revenue of $385.72 million, missing the anticipated $393.45 million. Despite these shortfalls, Kinetik Holdings achieved a 16% increase in full-year adjusted EBITDA, totaling $971 million, and provided positive EBITDA guidance for 2025, indicating expected growth.
The company remains optimistic about its future, forecasting adjusted EBITDA growth between $1.09 billion and $1.15 billion for 2025, representing a 15% increase. Kinetik Holdings also aims for a 10% EBITDA compound annual growth rate through 2030. Additionally, the company announced strategic expansions, including the acquisition of Durango Permian and a 15-year gas gathering and processing agreement in Eddy County.
Operational challenges from November were addressed with new risk management processes, and the company plans to continue its growth strategy with the development of intra-basin pipelines. Analyst firms have shown interest in Kinetik’s power generation strategy, which includes exploring a behind-the-meter gas-fired power generation facility in Reeves County, Texas.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.