Form 4: Kinetik Holdings Inc. Executive Stellato Reports Stock Awards and Tax Withholding

Steven Stellato, EVP, Chief Accounting Officer, and Chief Administrative Officer of Kinetik Holdings Inc., reports the acquisition of Class A Common Stock and performance share units, as well as shares withheld for tax obligations.

Summary

• On March 7, 2025, Steven Stellato, an executive at Kinetik Holdings Inc., reported transactions involving the company's Class A Common Stock and performance share units.
• Stellato acquired 6,139 shares of Class A Common Stock as a fully vested award in lieu of a cash settlement for the 2024 annual incentive award.
• He also acquired 13,892 restricted stock units (RSUs) that will vest on January 1, 2028, subject to continued employment.
• Additionally, Stellato received 6,946 performance share units (PSUs) eligible to vest between 0% and 200% based on the company's total shareholder return from January 1, 2025, through December 31, 2027.
• 213 dividend equivalent shares were accrued on PSUs.
• On March 10, 2025, 1,532 shares were withheld by the company at a price of $51.19 to cover Stellato's tax liability on the annual incentive award.
• Following these transactions, Stellato beneficially owns 373,077 shares of Class A Common Stock, 16,325 performance share units, and 16,538 dividend equivalent shares.
• A power of attorney was executed on March 3, 2025, granting Jamie Welch, Steven Stellato, and Lindsay Ellis the authority to file SEC documents on Stellato's behalf.

Sentiment

Score: 6

Explanation: The document is a standard SEC filing detailing executive stock transactions. It doesn't contain overtly positive or negative information, but the granting of stock awards can be seen as a moderate positive signal.

Positives

• The award of Class A Common Stock and RSUs to Stellato could be seen as a positive incentive for his continued service and performance.
• The vesting of PSUs based on total shareholder return aligns Stellato's interests with those of the shareholders.

Negatives

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

Risks

• The vesting of RSUs is contingent on Stellato's continued employment, creating a potential risk if he were to leave the company before January 1, 2028.
• The vesting of PSUs is dependent on the company's total shareholder return, which is subject to market fluctuations and company performance.

Future Outlook

The document outlines future vesting dates for RSUs and PSUs, contingent on continued employment and company performance, respectively.

Industry Context

This filing is a routine disclosure of executive compensation and stock ownership changes, common in publicly traded companies. It provides transparency into executive incentives and alignment with shareholder interests.

Comparison to Industry Standards

• Executive compensation packages including stock awards, RSUs, and PSUs are standard practice among publicly traded companies, particularly in the energy sector where Kinetik Holdings operates.
• Vesting schedules and performance-based vesting criteria are also common features designed to incentivize long-term value creation.
• Similar companies like Kinder Morgan, Energy Transfer, and Williams Companies also utilize equity-based compensation to align executive interests with shareholder returns.

Stakeholder Impact

• Shareholders may view the stock awards as an incentive for management to improve company performance.
• Employees may see the executive compensation package as a reflection of the company's commitment to rewarding its leadership.

Key Dates