Kinetik HoldingsNASDAQ: KNTK

Kinetik's recent acquisition of Durango Midstream is a lucrative EBITDA boosting transaction. The deal also opens several expansion opportunities for Kinetik. The dividend has an ample safety margin and the company is taxed as a C-Corp.

Kinetik's purchase of Durango increases its gathering pipeline length and boosts processing capacity by 420 MMcf/d.

KINETIK HLDGS (KNTK) lacks the necessary elements for a potential earnings surprise in its upcoming report. Be ready with the essential expectations.

Today, we revisit Kinetik Holdings Inc. whose stock yields just over nine percent. The company expects to cut capex spending by $390 million in FY24, covering a significant amount of the annual disbursement. Recent insider buying and the company's strong financials merited another deep dive.

Kinetik Holdings is an energy firm that offers comprehensive gathering, processing, and transportation services in the Permian Basin. The company has experienced significant revenue growth in the past three years, driven by robust demand for oil and natural gas. KNTK has been consistently paying dividends and has a solid dividend yield of 8.94%, making it an attractive stock for dividend seeking investors.

Kinetik Holdings has a high amount of debt, which has affected its margins and may lead to share dilution. KNTK operates in the Permian Basin and is embarking on ambitious expansion projects, but managing the financial aspects will be critical for growth. Earnings results for the company were mixed, but the dividend is currently over 11% and sustainable at a payout ratio of 74%.

Kinetik Holdings Inc. (KNTK) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

Kinetik Holdings offers an 8.8%-yielding payout. Plains All American Pipeline has plenty of room to grow its 8%-yielding payout.

Kinetik is a pure-play midstream firm in the Permian Basin. Its balance sheet is in mediocre shape, and when combined with a capex backlog, some are concerned. Selling its non-operated stake in Gulf Coast Express raises money at a great price to rotate into higher return projects.