Kinetik Holdings Inc. (KNTK) Covered Calls

Kinetik Holdings is a pure-play, Permian-to-Gulf Coast midstream energy company operating primarily in the Delaware Basin. The firm provides integrated gathering, transportation, compression, and processing services for natural gas, NGLs, crude oil, and water. By leveraging a strategic network of pipelines and processing complexes, Kinetik connects upstream producers with key demand centers, supporting the global energy transition through natural gas infrastructure.

You can sell covered calls on Kinetik Holdings Inc. to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for KNTK (prices last updated Tue 4:16 PM ET):

Kinetik Holdings Inc. (KNTK) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
44.18 -0.57 43.50 44.83 1.9M 109 5.6
Covered Calls For Kinetik Holdings Inc. (KNTK)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Mar 20 45 1.40 43.43 3.2% 46.7%
Apr 17 45 0.90 43.93 2.0% 13.8%
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Kinetik Holdings (KNTK) operates as a fully integrated midstream provider, structured to serve the intensive infrastructure needs of the Delaware Basin within the broader Permian region. The company’s business is divided into two primary segments: Midstream Logistics and Pipeline Transportation. The Logistics segment focuses on "wellhead-to-market" services, including gas gathering and processing across eight major complexes, alongside crude oil stabilization and produced water disposal. The Pipeline Transportation segment manages equity interests in long-haul pipelines that transport natural gas liquids (NGLs) and gas from the Permian to the U.S. Gulf Coast.

A central pillar of the company’s 2026 strategy is its "Data Center Power" initiative, which capitalizes on the massive surge in electricity demand from AI infrastructure. Kinetik is positioning itself as a primary supplier of natural gas to power generation facilities, providing the reliable baseload energy required by hyperscale data centers. To support this growth, the firm has optimized its capital structure through strategic asset recycling, including the sale of its equity interest in EPIC Crude in late 2025 and the acquisition of Durango Permian to bolster its processing footprint. This shift toward higher-margin, fee-based contracts provides a resilient revenue stream that is less sensitive to commodity price fluctuations.

Competitive Landscape

The midstream energy sector in the Permian Basin is highly concentrated, with competition centered on contract reliability and pipeline connectivity. Kinetik competes for producer volumes and infrastructure mandates with Western Midstream Partners and ONEOK, Inc.. In the broader energy logistics and storage space, the firm also rivals The Williams Companies and Hess Midstream.

Unlike larger, diversified midstream giants, Kinetik differentiates itself through its "pure-play" focus on the Delaware Basin, which allows for superior operational agility and deeper local producer relationships. This regional concentration is a double-edged sword, providing significant scale in a prolific basin but also increasing exposure to local production trends. However, its "C-Corp" structure—uncommon among midstream peers that typically operate as MLPs—broadens its investor appeal by simplifying tax reporting and attracting institutional capital that might otherwise avoid K-1 forms.

Strategic Outlook and Innovation

Operational priorities for 2026 are highlighted by the completion of the high-pressure ECCC pipeline extension into New Mexico, scheduled for operational launch in mid-2026. This project is critical for alleviating gathering bottlenecks and capturing the growing volume of associated gas from Northern Delaware producers. Financially, the company has entered 2026 on strong footing, having declared a 4% increase in its quarterly dividend to $0.81 per share ($3.24 annualized) in January 2026. This marks the third consecutive year of dividend growth, supported by a projected deleveraging path that aims to bring the debt-to-EBITDA ratio below 3.5x by year-end.

Looking ahead, Kinetik is prioritizing ESG-driven innovation, specifically through its "LEAF" (Low Emission and Flexible) infrastructure designs, which aim to reduce the carbon intensity of its processing operations. The company is also exploring "Agentic AI" integrations within its SCADA systems to automate pipeline pressure management and leak detection, enhancing safety and reducing operational downtime. With a reaffirmed 2026 EBITDA guidance range of $1.3 billion to $1.4 billion and a focus on expanding its low-carbon natural gas solutions, the firm is positioning itself as an essential infrastructure link for the digital and green energy economy.