Kinetik Holdings Inc. (NASDAQ:KNTK) Announces Dividend Increase – $0.78 Per Share

Kinetik Holdings Inc. (NASDAQ:KNTK) declared a quarterly dividend on Thursday, October 17th, Wall Street Journal reports. Shareholders of record on Monday, October 28th will be given a dividend of 0.78 per share on Thursday, November 7th. This represents a $3.12 annualized dividend and a yield of 6.29%. The ex-dividend date is Monday, October 28th. This is an increase from Kinetik’s previous quarterly dividend of $0.75.

Kinetik has a payout ratio of 128.4% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Kinetik to earn $2.67 per share next year, which means the company may not be able to cover its $3.12 annual dividend with an expected future payout ratio of 116.9%.

Kinetik Stock Performance

Shares of Kinetik stock opened at $49.64 on Friday. The firm has a 50-day moving average of $46.26 and a 200-day moving average of $42.61. Kinetik has a 52-week low of $31.73 and a 52-week high of $51.97. The stock has a market cap of $7.63 billion, a PE ratio of 20.34, a PEG ratio of 2.38 and a beta of 2.91.

Kinetik (NASDAQ:KNTK) last posted its quarterly earnings data on Wednesday, August 7th. The company reported $0.54 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.43 by $0.11. Kinetik had a net margin of 30.96% and a negative return on equity of 48.16%. The firm had revenue of $359.50 million during the quarter, compared to the consensus estimate of $305.94 million. During the same quarter in the previous year, the firm posted $0.41 EPS. The business’s revenue for the quarter was up 21.4% compared to the same quarter last year. Equities research analysts predict that Kinetik will post 1.44 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

KNTK has been the topic of a number of analyst reports. Barclays increased their price target on Kinetik from $43.00 to $47.00 and gave the stock an “equal weight” rating in a research report on Monday, October 14th. Mizuho increased their target price on Kinetik from $47.00 to $55.00 and gave the stock an “outperform” rating in a report on Thursday. Scotiabank boosted their price target on Kinetik from $42.00 to $48.00 and gave the company a “sector outperform” rating in a research note on Tuesday, July 2nd. Finally, Royal Bank of Canada increased their price objective on shares of Kinetik from $46.00 to $52.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 16th. Three equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $45.71.

About Kinetik

Kinetik Holdings Inc operates as a midstream company in the Texas Delaware Basin. The company operates through two segments, Midstream Logistics and Pipeline Transportation. It provides gathering, transportation, compression, processing, stabilization, treating, storage, and transportation services for companies that produce natural gas, natural gas liquids, and crude oil; and water gathering and disposal services.