In a significant transaction, Apache Midstream LLC, a wholly owned subsidiary of Apache Corporation (NASDAQ:APA), has sold its entire stake in Kinetik Holdings Inc. (NASDAQ:KNTK). The sale, which occurred on March 18, 2024, involved 13,079,871 shares of Class A Common Stock at a price of $33.75 per share, resulting in a total transaction value of approximately $441 million.
This move has reduced Apache Midstream's ownership in Kinetik Holdings to zero, as indicated by the post-transaction ownership details. The shares were reported as being indirectly owned by Apache Midstream LLC through its parent company, Apache Corporation.
The transaction was officially signed off by Ben C. Rodgers, an authorized officer of each reporting owner, and was disclosed in a recent filing with the Securities and Exchange Commission.
Investors and market watchers often pay close attention to such large-scale dispositions by major stakeholders, as they can sometimes indicate strategic shifts or changes in a company's financial outlook. However, without further commentary from the involved parties, the motivations behind the sale remain open to interpretation.
Kinetik Holdings Inc., which operates in the natural gas transmission sector, has not yet made a public statement regarding the transaction. The company, formerly known as Altus Midstream Co and Kayne Anderson Acquisition Corp, has its headquarters in Houston, Texas, the same city where Apache Midstream and its parent company are based.
The sale represents a notable adjustment in the relationship between Apache Midstream LLC and Kinetik Holdings Inc., and it may have implications for the market's perception of Kinetik Holdings' future performance and strategic direction.
InvestingPro Insights
In light of Apache Midstream's divestment from Kinetik Holdings Inc. (NASDAQ:KNTK), investors might be seeking clarity on the company's financial health and future prospects. Kinetik Holdings has been a subject of interest, with several metrics and InvestingPro Tips indicating its current market position. As of the last twelve months ending in Q4 2023, Kinetik Holdings has a market capitalization of $5.69 billion and is trading with a P/E ratio of 7.8, which suggests that the stock may be undervalued relative to its near-term earnings growth.
One of the key InvestingPro Tips for Kinetik Holdings is its significant dividend yield, which stands at 8.08% as of the latest data. This could be an attractive feature for income-focused investors, especially considering the company's low price volatility, which provides a degree of stability in an investor's portfolio. Moreover, the company's stock is trading near its 52-week high, at 97.97% of the peak, reflecting strong investor confidence and market performance over the past year.
From a financial perspective, Kinetik Holdings has shown a revenue growth of 18.06% in the most recent quarter of Q4 2023, underpinning the company's ability to expand its business operations effectively. The gross profit margin stands at a healthy 46.1%, indicating solid profitability from its core activities.
For those interested in delving deeper into Kinetik Holdings' financials and strategic analysis, InvestingPro offers additional insights and tips. There are more InvestingPro Tips available for Kinetik Holdings, which can be accessed through the dedicated section at https://www.investing.com/pro/KNTK. Readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a comprehensive investment analysis platform to make informed decisions.
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