Form 4: Blackstone Entities Report Changes in Kinetik Holdings Inc. Beneficial Ownership

Blackstone and related entities report acquisition of Class A Common Stock in Kinetik Holdings Inc. through settlement of Consideration Allocation Rights and dividend reinvestments.

Summary

• On April 25, 2024, certain Blackstone-related reporting persons received shares of Kinetik Holdings Inc. Class A Common Stock in settlement of Consideration Allocation Rights.
• These rights were granted under the Allocation Agreement dated February 22, 2022.
• The reporting persons also acquired additional shares through the Company's Dividend and Distribution Reinvestment Plan.
• BCP Raptor Aggregator, LP acquired 2,475,508 shares since the last Form 4 filing.
• BX Permian Pipeline Aggregator LP acquired 400,204 shares since the last Form 4 filing.
• The acquisitions through the Dividend and Distribution Reinvestment Plan are exempt from Section 16 of the Securities Exchange Act of 1934 under Rule 16a-11.
• Following the reported transactions, BCP Raptor Aggregator, LP directly owns 10,255,727 shares of Class A Common Stock.
• BX Permian Pipeline Aggregator LP directly owns 1,657,988 shares of Class A Common Stock.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The document primarily reports transactions related to existing agreements and dividend reinvestments, without expressing explicit positive or negative views on the company's prospects. The increased ownership by Blackstone could be seen as a positive signal, but it's more of a factual reporting of events.

Positives

• Increased ownership by Blackstone entities may signal confidence in Kinetik Holdings Inc.'s future performance.
• Acquisition of shares through dividend reinvestment indicates a long-term investment strategy.

Future Outlook

The document outlines future potential settlements of Consideration Allocation Rights on February 25, 2025, and February 25, 2026, which could result in further changes in beneficial ownership.

Industry Context

This filing reflects ongoing ownership adjustments within Kinetik Holdings, a company operating in the midstream energy sector. Blackstone's continued involvement suggests a sustained interest in the company's performance and strategic direction.

Comparison to Industry Standards

• Blackstone's investment in Kinetik Holdings is comparable to other private equity firms' investments in midstream energy companies.
• Similar to other midstream companies, Kinetik Holdings utilizes dividend reinvestment plans, allowing major shareholders to increase their stakes without direct market purchases.
• The size of Blackstone's holdings is significant, placing them among the larger institutional investors in the midstream sector, similar to companies like EQT and Brookfield Infrastructure Partners.

Stakeholder Impact

• The changes in beneficial ownership may influence investor perception of Kinetik Holdings Inc.
• Increased holdings by Blackstone entities could provide a sense of stability and confidence to shareholders.

Key Dates