Barclays analyst Theresa Chen initiates coverage on Kinetik Holdings (NYSE: KNTK) with an Equal Weight rating and $40 price target. Chen praises the strategic positioning of Kinetik’s (KNTK) gathering and processing assets in the Delaware Basin, noting the area’s consistent production growth and high gas-to-oil ratios.
The analyst points to the cash stability provided by Kinetik’s (KNTK) fee-based G&P contracts and minimum volume commitment equity interests in pipelines. “Within our midstream coverage, we prefer exposure to the Permian given the basin’s deep resource and low-cost advantage relative to other liquids-oriented shale plays,” Chen writes.
