Kinetik Holdings Inc.

Kinetik Holdings Inc. (NYSE:KNTK) is a midstream energy company founded through the 2021 merger of EagleClaw Midstream and Altus Midstream, creating one of the largest natural gas gathering and processing companies in the Permian Basin's Delaware sub-basin. Headquartered in Midland, Texas, the company has established itself as a critical infrastructure provider in one of America's most prolific oil and gas producing regions, operating extensive pipeline networks, processing facilities, and compression systems that serve as the vital link between wellhead production and end markets.

Over the past several years, Kinetik has executed a strategic expansion and integration strategy focused on consolidating its position in the Delaware Basin while diversifying its asset base. The company's most significant recent development was the acquisition of Durango Permian assets in 2024, which expanded its footprint into the Northern Delaware Basin and added approximately 200 million cubic feet per day of processing capacity along with extensive gathering infrastructure. The company has made substantial investments in processing capacity expansion, most notably the development of the Kings Landing processing complex. Kings Landing I, with 200 million cubic feet per day of capacity, entered service in Q2 2025, while the company has sanctioned pre-FID work for Kings Landing II, which could add another 300 million cubic feet per day by Q3 2026. This expansion strategy addresses growing gas production in the region and provides Kinetik with modern, efficient processing capabilities. Pipeline infrastructure development has been another key focus area. The company completed the Delaware Link pipeline system, providing 1 billion cubic feet per day of residue gas transportation capacity, and increased its equity stake in EPIC Crude Oil Pipeline to 27.5% through a partnership with Diamondback Energy. The recently announced E Triple C pipeline project will provide additional connectivity between the company's New Mexico and Texas operations. Kinetik has also pursued innovative operational initiatives, including exploration of behind-the-meter power generation projects in Reeves County, Texas, which could help optimize electricity costs for its energy-intensive processing operations. The company received EPA approval for its CO2 sequestration monitoring plan and entered agreements for CO2 utilization, positioning it to potentially benefit from carbon capture and storage opportunities. Capital allocation strategy has evolved toward greater shareholder returns, evidenced by the announcement of a $500 million share repurchase program in 2025 while maintaining disciplined growth investment. The company has also steadily increased its quarterly dividend, demonstrating confidence in cash flow stability and commitment to returning capital to shareholders.