Form 4: Kinetik Holdings Inc. Executive Anne Psencik Reports Stock and Performance Unit Transactions

Anne Psencik, Chief Strategy Officer of Kinetik Holdings Inc., reports the acquisition and disposal of Class A Common Stock and Performance Share Units.

Summary

• On March 7, 2025, Anne Psencik, Chief Strategy Officer of Kinetik Holdings Inc., reported several transactions involving the company's Class A Common Stock and Performance Share Units.
• Psencik acquired 5,960 shares of Class A Common Stock as a fully vested award in lieu of cash for her 2024 annual incentive.
• She also acquired 10,538 restricted stock units (RSUs) that will vest on January 1, 2028, contingent upon continued employment.
• Additionally, 5,269 performance share units (PSUs) were awarded, with vesting dependent on continued employment and the company's total shareholder return from January 1, 2025, to December 31, 2027.
• Psencik acquired 204 dividend equivalent shares accrued on previously granted PSUs.
• The company withheld 1,483 shares on March 10, 2025, at a price of $51.19 to cover Psencik's tax liability on her annual incentive award.
• Psencik's 401(k) plan acquired an additional 320 shares of Class A Common Stock.
• Following these transactions, Psencik directly owns 273,751 shares of Class A Common Stock and indirectly owns 320 shares through her 401(k) plan.
• She also holds 14,425 Performance Share Units.

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing detailing executive stock transactions. It doesn't contain any overtly positive or negative information, but the granting of equity-based compensation suggests a belief in the company's future prospects.

Positives

• The award of shares and RSUs to the Chief Strategy Officer aligns her interests with those of the shareholders.
• The vesting of PSUs based on total shareholder return incentivizes performance and value creation.
• The acquisition of shares through the 401(k) plan demonstrates confidence in the company's future.

Negatives

• The withholding of shares to cover tax liabilities reduces the executive's overall holdings, although this is a standard practice.

Risks

• The vesting of RSUs and PSUs is contingent upon continued employment, creating a potential risk of forfeiture if the executive leaves the company before the vesting dates.
• The performance-based vesting of PSUs is subject to the company's total shareholder return, which can be influenced by market conditions beyond the company's control.

Future Outlook

The vesting of RSUs and PSUs is tied to future employment and company performance, indicating a long-term incentive structure.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies and are closely monitored by investors for insights into management's confidence in the company's prospects.

Comparison to Industry Standards

• Executive compensation packages often include a mix of salary, stock options, restricted stock units, and performance-based incentives.
• The vesting schedules and performance metrics used by Kinetik Holdings Inc. are likely aligned with industry standards for attracting and retaining top talent.
• Comparing Kinetik's executive compensation structure to that of its peers, such as Kinder Morgan or Energy Transfer, would provide a more detailed assessment.

Stakeholder Impact

• Shareholders may view the executive's stock ownership as a positive sign, aligning her interests with theirs.
• Employees may be motivated by the company's use of equity-based compensation to incentivize performance.

Next Steps

• Monitor future Form 4 filings to track changes in the executive's holdings and assess the impact of vesting events.
• Evaluate the company's performance against the targets set for the performance share units to determine the ultimate payout.

Key Dates