Strategic Moves Position Kinetik Holdings for Growth in the Permian Basin

US midstream operator Kinetik Holdings Inc. is executing a dual-pronged strategy to address critical bottlenecks and strengthen its financial position within the prolific Permian Basin. As the market evaluates these developments, the central question is whether these initiatives can reverse the downward pressure on the company’s share price.

In a significant strategic shift announced in early September, Kinetik divested its 27.5% stake in EPIC Crude Holdings to Plains All American Pipeline. The transaction netted $500 million, providing an immediate infusion of capital. The deal structure includes a potential additional payment of $96 million, contingent upon future capacity expansions at the asset. This substantial capital is expected to be redirected toward more attractive growth projects within Kinetik’s core operations or potentially... Read more...