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

Kinetik Holdings Inc. (NASDAQ:KNTK) declared a quarterly dividend on Friday, October 18th, Wall Street Journal reports. Investors 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 yield of 6.16%. The ex-dividend date of this dividend is Monday, October 28th. This is an increase from Kinetik’s previous quarterly dividend of $0.75.

Kinetik has a payout ratio of 132.2% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Kinetik to earn $2.62 per share next year, which means the company may not be able to cover its $3.00 annual dividend with an expected future payout ratio of 114.5%.

Kinetik Stock Up 1.9 %

Shares of NASDAQ:KNTK traded up $0.92 during midday trading on Friday, reaching $50.64. 394,282 shares of the company traded hands, compared to its average volume of 512,161. Kinetik has a 12 month low of $31.73 and a 12 month high of $50.83. The firm’s fifty day moving average price is $45.22 and its two-hundred day moving average price is $42.13. The firm has a market capitalization of $7.78 billion, a price-to-earnings ratio of 20.76, a price-to-earnings-growth ratio of 2.60 and a beta of 2.91.

Kinetik (NASDAQ:KNTK) last announced its quarterly earnings results on Wednesday, August 7th. The company reported $0.54 EPS for the quarter, beating the consensus estimate of $0.43 by $0.11. The firm had revenue of $359.50 million during the quarter, compared to the consensus estimate of $305.94 million. Kinetik had a net margin of 30.96% and a negative return on equity of 48.16%. The business’s quarterly revenue was up 21.4% compared to the same quarter last year. During the same period last year, the firm earned $0.41 EPS. Analysts forecast that Kinetik will post 1.39 earnings per share for the current year.

Analyst Ratings Changes

Several analysts have issued reports on the company. Scotiabank upped their target price on Kinetik from $42.00 to $48.00 and gave the stock a “sector outperform” rating in a research note on Tuesday, July 2nd. Royal Bank of Canada raised their price objective on Kinetik from $46.00 to $52.00 and gave the company an “outperform” rating in a research note on Wednesday. Finally, Barclays increased their target price on Kinetik from $43.00 to $47.00 and gave the company an “equal weight” rating in a report on Monday. 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, Kinetik has a consensus rating of “Moderate Buy” and an average price target of $43.86.

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.