Kinetik Puts Itself in Play
Kinetik Holdings is sizing up its next chapter, and selling the company is on the table, said individuals with knowledge of the talks who requested anonymity. Advisers are helping the pipeline operator prepare for a possible sale process that could launch within weeks, though no decision is set and it may choose to stay independent.
Both Kinetik and Blackstone said they had nothing to add. The stock closed at $54.55 on Wednesday, down 0.8%, putting the market cap near $8.9 billion. Even so, shares are up about 30% over the past 12 months.
Why Now
Kinetik is coming to market following a surge in commodity prices during the wars in Ukraine and Iran, a backdrop that has nudged oil and gas dealmaking higher. Among recent midstream transactions are Oneok Inc.'s $4.4 billion purchase of Brazos Midstream assets, as well as Williams Cos.' $5.5 billion buy of Momentum Midstream.
It also owns crude oil and water gathering assets.
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Who Holds the Keys
Blackstone is Kinetik's largest shareholder, with about 15% of the Class A stock at midyear, per Bloomberg data. It also owned 70% of the Class C shares, which translated to close to half of total shareholder voting power in a May filing. The company's roots trace to EagleClaw Midstream; Blackstone reached a deal to acquire it in 2017, and it was later combined with Altus Midstream. In February, the Financial Times said that Kinetik was getting ready to consider selling the company following outreach from Western Midstream Partners.
What It Means for Your Money
If a deal materializes, control of a key Permian player could shift, and that can ripple into how cash gets allocated across similar midstream names. For investors who hold pipeline stocks or energy funds, watch how peers trade on the headlines, what acquirers are paying, and whether consolidation tightens the screws on returns or unlocks efficiencies that support dividends.
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