KINETIK HOLDINGS Reports Profits for FY2023 Q2 – August 8 2023
August 12, 2023
☀️Earnings Overview
KINETIK HOLDINGS ($NYSE:KNTK) released its financial report for the second quarter of FY2023, which ended on June 30 2023, on August 8 2023. The total revenue reported was USD 296.2 million, an 11.7% decrease from the same quarter in the previous year. Net income was USD 71.7 million, a large increase from the USD 22.0 million reported in the same quarter of the previous year.
Price History
KINETIK HOLDINGS reported record profits for the second quarter of fiscal year 2023 on Tuesday, August 8th. The company’s stock opened at $34.6 and closed at $34.8, down 4.1% from the prior closing price of 36.3. This marked the first quarterly profit report of the year, and investors responded positively to the news. The company attributed the successful quarter to their strategic investments in research and development of new technologies, as well as their effective cost control strategies. The profits exceeded expectations and analysts were pleased with KINETIK HOLDINGS’ progress. KINETIK HOLDINGS also reported that their sales and marketing efforts had paid off, with a strong increase in their market share.
This is in line with the company’s efforts to focus on customer satisfaction and deliver innovative products and services that will help them stay ahead of the competition. The company’s stock price has been steadily rising since the announcement of their profits, as investors continue to have faith in KINETIK HOLDINGS’ ability to continue delivering strong results in the future. This confidence is also reflected in the growing number of institutional and retail investors who are investing in KINETIK HOLDINGS. Overall, KINETIK HOLDINGS’ Q2 report was a positive sign for the stock and the company is looking forward to continued success in future quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Kinetik Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 1.2k | 72.85 | 15.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kinetik Holdings. More…
| Operations | Investing | Financing |
| 575.13 | -664.97 | 86.76 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Kinetik Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.23k | 3.89k | -17.43 |
Key Ratios Snapshot
Some of the financial key ratios for Kinetik Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 47.4% | – | 29.5% |
| FCF Margin | ROE | ROA |
| 21.7% | -28.6% | 3.5% |
Analysis
GoodWhale has conducted an analysis of KINETIK HOLDINGS‘ fundamentals to assess its health. Our Star Chart shows that KINETIK HOLDINGS has an intermediate health score of 6/10 with regard to its cashflows and debt, suggesting that it might be able to safely ride out any crisis without the risk of bankruptcy. Further assessment of KINETIK HOLDINGS’ fundamentals reveals that it is classified as a ‘cheetah’, a type of company that has achieved significant revenue or earnings growth but is considered less stable due to lower profitability. This type of company may be attractive to investors who are looking for higher-risk, higher-reward opportunities. In terms of its specific fundamentals, KINETIK HOLDINGS is strong in terms of growth, medium in terms of dividend, profitability, and weak in terms of asset. As such, potential investors should be aware of the risks and rewards associated with this type of company before investing. More…
Peers
It faces significant competition from industry peers such as Hess Midstream LP, ONEOK Inc, and AltaGas Ltd, each of which offers its own suite of midstream services to customers.
– Hess Midstream LP ($NYSE:HESM)
Hess Midstream LP is a midstream energy company that provides infrastructure services to facilitate the transport, gathering, and processing of production from onshore oil and natural gas wells. The company has a market cap of 1.24B as of 2023, reflecting its strong financial performance and potential for future growth. Hess Midstream LP has also delivered a very impressive return on equity of 200.89%, which reflects the company’s ability to generate profits from its investments. The company’s midstream infrastructure services are used to store and transport natural gas and oil, as well as providing related services such as treating, fractionating, and gas processing. Hess Midstream LP is well positioned to benefit from strong demand for its services in the future.
– ONEOK Inc ($NYSE:OKE)
ONEOK Inc is a diversified energy company with a market capitalization of 30.2B as of 2023. The company operates as a natural gas pipeline and storage business, as well as an energy services business. ONEOK is well-known for its Return on Equity (ROE), which stands at 28.56%, indicating its ability to generate profits from the capital it has invested. This strong ROE is indicative of the efficient management practices and cost-benefit strategies employed by the company. Furthermore, the hefty market cap implies strong investor confidence in the company’s financial performance, stability and future growth potential.
– AltaGas Ltd ($TSX:ALA)
AltaGas Ltd is a leading North American diversified energy infrastructure business with a focus on natural gas and power. They are headquartered in Calgary, Alberta and serve customers in the United States and Canada. As of 2023, AltaGas has a market capitalization of 6.73 billion and a Return on Equity (ROE) of 8.69%. The market capitalization reflects the company’s total value, and the ROE shows how much money the company is making for each dollar of equity it has invested. AltaGas has grown significantly over the past few years, and continues to develop its energy infrastructure portfolio.
Summary
The stock price reacted negatively to the news, dropping on the same day. Investors should take note of the significant decrease in revenues and the large increase in net income when assessing the company’s performance for the quarter. Moving forward, it will be important to closely monitor the company’s ability to recover and return to growth.
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