Kinetik Holdings chief strategy officer retires, enters consulting agreement

Published 01/07/2025, 21:50
Kinetik Holdings chief strategy officer retires, enters consulting agreement

Kinetik Holdings Inc. (NYSE:KNTK), a $6.8 billion midstream energy company with annual revenues of $1.6 billion, announced that Anne Psencik, its chief strategy officer, retired from her position effective Monday. According to InvestingPro data, the company maintains a "GOOD" financial health score, suggesting stable operations despite the executive change. The company stated that Ms. Psencik expressed no disagreement with Kinetik Holdings regarding its operations, policies, or practices.

According to a press release statement based on a filing with the Securities and Exchange Commission, Kinetik Holdings and Ms. Psencik entered into a separation and release agreement on Monday. Under the terms of the agreement, Ms. Psencik will receive a one-time lump sum payment of $887,356, which will be paid on the first payroll date that occurs on or after 45 days following her termination date. The agreement also allows her outstanding and unvested equity awards under the company’s long-term incentive plan to remain eligible for vesting according to their original terms.

Additionally, Kinetik Holdings and Ms. Psencik entered into a consulting agreement on Monday. Ms. Psencik will serve as a consultant to the company through July 1, 2028. During this period, she will provide consulting services at an annual rate of $150,000, paid in monthly installments, and will be reimbursed for reasonable business-related expenses. The agreement also provides for discretionary payments of up to $300,000 in aggregate during the consulting period, subject to the discretion of the chief executive officer.

The consulting agreement maintains Ms. Psencik’s eligibility to vest in her outstanding unvested equity awards during the consulting period. If the company terminates the consulting agreement without cause, Ms. Psencik will receive any unpaid consulting fees and all unvested equity awards will vest in full. The agreement also includes confidentiality and other restrictive covenants.

Kinetik Holdings stated that the full text of the agreements will be filed with its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.

In other recent news, Kinetik Holdings Inc. has announced significant financial developments with the establishment of a $1.6 billion senior unsecured revolving credit facility. This agreement, which includes sublimits for letters of credit and swingline loans, was disclosed in a recent SEC filing. In addition, Kinetik Holdings entered into a term loan credit agreement with Toronto Dominion (Texas) LLC for $1.15 billion, replacing previous credit facilities. Meanwhile, Kinetik’s first-quarter earnings for 2025 have prompted several analyst actions. Goldman Sachs adjusted its price target to $54.00 from $61.00 while maintaining a Buy rating, noting better-than-expected gas processing and gathering margins. Citi upgraded Kinetik’s stock rating to Buy, despite lowering the price target to $55.00, reflecting a more attractive risk-return proposition. RBC Capital Markets also revised its price target to $55.00 from $57.00, citing commodity headwinds but maintaining an Outperform rating. Analysts from these firms highlight Kinetik’s strategic initiatives and potential for growth, particularly with projects like Kings Landing 1 and 2.

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