Kinetik Holdings sees $89.6 million stock sale by major stakeholders

Published 19/03/2025, 22:32
Kinetik Holdings sees $89.6 million stock sale by major stakeholders

MIAMI—Kinetik Holdings Inc. (NASDAQ:KNTK), currently trading at $54.29 with a market capitalization of $8.57 billion, witnessed significant stock transactions as detailed in a recent SEC filing. On March 17 and 18, major stakeholders sold a combined total of 1,702,101 shares of Class A Common Stock at a price of $52.66 per share, amounting to approximately $89.6 million. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The transactions involved ISQ Global Fund II GP LLC, I Squared Capital, LLC, and ISQ Holdings, LLC, each reported as ten percent owners. The sales reduced their collective ownership to just one share following the transactions. These moves come as part of a broader strategy by the stakeholders, but the specific reasons for the sales were not disclosed in the filing. The company has demonstrated strong performance, with a 53.44% return over the past year and maintains an attractive dividend yield of 5.85%.

Additionally, the filing noted that 657,582 shares were acquired through a conversion of Kinetik Holdings Units, although this transaction did not involve a cash exchange. The report also highlighted the complex ownership structure involving Buzzard Midstream LLC and its associated entities, with Sadek Wahba and Gautam Bhandari noted as members of ISQ Holdings, LLC.

This activity underscores the ongoing financial maneuvers within Kinetik Holdings, a natural gas transmission company based in Houston, Texas. Investors will be keenly observing how these transactions impact the company’s market performance in the coming weeks.

In other recent news, Kinetik Holdings Inc. reported its fourth-quarter 2024 earnings, revealing a significant shortfall in both earnings per share (EPS) and revenue compared to analysts’ forecasts. The company posted an EPS of $0.01, falling short of the expected $0.48, and reported revenue of $385.72 million, missing the forecast of $393.45 million. Despite this, Kinetik Holdings demonstrated robust annual performance with a 16% year-over-year increase in adjusted EBITDA for 2024, totaling $971 million. In other developments, Kinetik Holdings announced the pricing of a $250 million sustainability-linked senior notes offering, with plans to use the proceeds for general corporate purposes, including repaying part of the outstanding borrowings under its revolving credit facility. Additionally, RBC Capital Markets adjusted its outlook on Kinetik Holdings, reducing the company’s price target from $67.00 to $63.00 but maintained an Outperform rating. The firm cited Kinetik Holdings’ strong positioning in the Permian Basin as a key factor for growth. Furthermore, Kinetik Holdings announced the resignation of board member Jesse Krynak, who left without citing any disagreements with the company’s operations. These recent developments reflect ongoing changes and strategic moves within Kinetik Holdings.

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