Kinetik Holdings Inc. (NASDAQ:KNTK) Increases Dividend to $0.78 Per Share

Kinetik Holdings Inc. (NASDAQ:KNTK) announced a quarterly dividend on Thursday, October 17th, Wall Street Journal reports. Stockholders 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 dividend on an annualized basis and a dividend yield of 6.29%. The ex-dividend date is Monday, October 28th. This is a positive change 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 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 Price Performance

NASDAQ KNTK opened at $49.64 on Friday. The company has a market capitalization of $7.82 billion, a price-to-earnings ratio of 19.32, a price-to-earnings-growth ratio of 2.38 and a beta of 2.91. Kinetik has a 12 month low of $31.73 and a 12 month high of $51.97. The company’s fifty day moving average price is $46.26 and its two-hundred day moving average price is $42.59.

Kinetik (NASDAQ:KNTK) last issued its earnings results 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. The business had revenue of $359.50 million for the quarter, compared to analyst estimates of $305.94 million. Kinetik had a net margin of 30.96% and a negative return on equity of 48.16%. The company’s revenue for the quarter was up 21.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.41 EPS. As a group, analysts anticipate that Kinetik will post 1.44 EPS for the current year.

Analyst Ratings Changes

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