Why Kinetik Holdings Stock Popped Today
Key Points
Kinetik reported strong profits but weak sales in Q4 2025.
Management forecasts decreased capital investment, implying more free cash flow in 2026.
- 10 stocks we like better than Kinetik ›
Oil and gas pipeline company Kinetik Holdings (NYSE: KNTK) stock jumped 10.5% through 11:15 a.m. ET Thursday after reporting very mixed results in its financial report last night.
Analysts forecast Kinetik would earn only $0.33 per share on sales of $476.8 million for the quarter. Kinetik actually earned $2.16 per share, despite sales falling short at only $430.4 million.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Kinetik Q4 earnings
How did Kinetik surprise the analysts? Most of Kinetik's earnings in the quarter came not from operations, but from profit on asset sales, specifically, the company's equity interest in EPIC Crude Holdings, LP. Operating profit for the quarter was only $48.4 million (still more than double the $23.7 million earned in last year's Q4). "Gain on sale of equity method investment" from the EPIC deal, however, provided the bulk of the quarter's profits: $415.4 million.
(That's not something investors should expect to recur in future quarters, however, so make sure to view this quarter's earnings as an anomaly.)
(And I'll give the same advice for the full-year results; Kinetik reported total profit of $2.63 per share for all of 2025, more than double last year's earnings -- but that won't repeat.)
Free cash flow was negative in the quarter, but positive $497.1 million for the year.
What does it all mean for Kinetik stock?
Going forward, Kinetik tells investors to anticipate "high single-digit percentage growth year-over-year in gas processed volumes across the system," which sounds propitious. Additionally, Kinetik is forecasting capital spending between $450 million and $510 million in 2026, which, at the midpoint, implies less capital spending this year than the $497.1 million Kinetik spent last year.
Long story short, Kinetik's probably going to generate even more free cash flow this year.
Should you buy stock in Kinetik right now?
Before you buy stock in Kinetik, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kinetik wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $445,995!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,198,823!*
Now, it’s worth noting Stock Advisor’s total average return is 927% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 26, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
