Form 4: Kinetik CFO Reports Equity Changes, New RSU Grants

Kinetik Holdings Inc.'s CFO, Trevor Howard, reported recent equity transactions including RSU grants, tax-related share disposals, and accrued dividend equivalents on PSUs.

Summary

• Trevor Howard, SVP and Chief Financial Officer of Kinetik Holdings Inc. (KNTK), reported changes in his beneficial ownership of company securities.
• On January 2, 2026, Mr. Howard was granted 3,236 shares of Class A Common Stock in the form of Restricted Stock Units (RSUs) under the company's 2019 Omnibus Compensation Plan.
• These RSUs are scheduled to vest on January 1, 2027, contingent upon Mr. Howard's continued employment.
• Also on January 2, 2026, 2,307 shares of Class A Common Stock were withheld by the Issuer at a price of $36.05 per share to cover tax liabilities arising from RSU vesting events that occurred on March 10, 2023, and May 9, 2025.
• Additionally, 574 dividend equivalent shares accrued on Performance Share Units (PSUs) previously granted to Mr. Howard, reflecting the right to receive Class A Common Stock upon vesting of the underlying PSUs.
• Following these transactions, Mr. Howard beneficially owns 225,287 shares of Class A Common Stock directly and 8,537 derivative securities (PSUs including dividend equivalents) directly.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. While there was a disposition of shares for tax purposes, the overall activity includes new equity grants (RSUs and PSU dividend equivalents), which are positive for executive incentives and alignment with shareholder interests. These are routine compensation events.

Positives

• The grant of 3,236 Restricted Stock Units (RSUs) to the CFO aligns management's interests with long-term shareholder value.
• The accrual of 574 dividend equivalent shares on Performance Share Units (PSUs) further enhances executive compensation and incentivizes performance.

Negatives

• A disposition of 2,307 shares of Class A Common Stock occurred to satisfy tax liabilities, reducing direct shareholdings.

Risks

• The vesting of RSUs and PSUs is subject to the reporting person's continued employment, posing a risk to the full realization of the compensation if employment ceases before vesting dates.

Future Outlook

The newly granted Restricted Stock Units (RSUs) are set to vest on January 1, 2027, subject to the CFO's continued employment. Dividend equivalent shares accrued on Performance Share Units will be paid out in Class A Common Stock upon the vesting of the underlying units.

Industry Context

This Form 4 filing details routine executive compensation and insider transactions, which are standard practices across publicly traded companies to incentivize and retain key management personnel. The structure of equity awards, including RSUs and PSUs, is common in the energy and infrastructure sector to align executive performance with long-term company goals.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) and Performance Share Units (PSUs) as part of executive compensation is a common practice in the energy and midstream sectors, aligning with industry standards for long-term incentive plans.
• The withholding of shares to cover tax liabilities upon vesting is a standard mechanism for equity compensation, consistent with practices observed in comparable companies.

Stakeholder Impact

• Shareholders: The equity grants align the CFO's financial interests with the long-term performance of Kinetik Holdings Inc., potentially fostering better decision-making for shareholder value.
• Employees: The compensation structure for a key executive may set a precedent or reflect the company's overall approach to executive incentives.

Next Steps

• The granted Restricted Stock Units (RSUs) are scheduled to vest on January 1, 2027.
• Dividend equivalent shares on Performance Share Units (PSUs) will be paid out in Class A Common Stock upon the vesting of the underlying units.

Key Dates

Recommendation

This Form 4 details routine executive compensation activities, including RSU grants and tax-related share disposals. Such transactions are standard and do not typically signal a change in the company's fundamental outlook or warrant a specific investment action beyond maintaining current positions. Investors should consider broader company fundamentals and market conditions for investment decisions.

Keywords

Kinetik Holdings, KNTK, SEC Form 4, Insider Transaction, Executive Compensation, Restricted Stock Units, Performance Share Units, Equity Grant, CFO, Stock Ownership