Kinetik Holdings (KNTK)

Kinetik Holdings (KNTK)

Kinetik holdings has posted remarkable growth in the last four years, growing its annual revenue from $148 million to more than $1.25 billion last year. The fast growing company provides oil and gas production and distribution services, which has proven to be lucrative for them, especially last year when they posted a 293% jump in net income to $289 million. Their strong profit margins last year were their best in years, which reflected directly in the stock’s price. 

KNTK reached a new 52 week high in recent weeks thanks to their last earnings report, which showed another 30% jump in revenue. The stock’s rally has grown the company’s market cap to $6.85 billion, which is quite fair if they can maintain the same revenue trends. Their outstanding profit margins has brought their price to earnings ratio to a reading of 17, on the cheaper end of the 15-25 healthy ratio. 

What is most notable about KNTK is their dividend. The company pays a strong yield of 6.88%, which has calculated to a 75 cent quarterly payout. This makes for a decent quarterly dividend from such a cheap stock to hold. But of course, a “cheap” stock does come with its own set of risks, especially one in a volatile industry like oil and gas.