Form 4: Kinetik Holdings Officer Granted Equity Awards

Kinetik Holdings' General Counsel, Lindsay Ellis, received significant equity awards including restricted stock units and performance share units, aligning executive incentives with long-term company performance.

Summary

• Lindsay Ellis, General Counsel, Chief Compliance Officer & Corporate Secretary of Kinetik Holdings Inc., was granted 10,676 shares of Class A Common Stock as Restricted Stock Units (RSUs) on February 20, 2026.
• These RSUs will generally vest on January 1, 2029, contingent on continued service with the company.
• An award of 5,338 Performance Share Units (PSUs) was also granted on February 20, 2026, representing a contingent right to receive Class A Common Stock.
• These PSUs are eligible to vest between 0% and 200% of the target number based on continued service and the company's annualized total shareholder return (TSR) from January 1, 2026, through December 31, 2028.
• Additionally, 129 dividend equivalent shares accrued on previously granted PSUs were awarded, reflecting the right to receive Class A Common Stock upon vesting of the underlying units.
• Following these transactions, Lindsay Ellis beneficially owns 43,093 shares of Class A Common Stock directly and 9,240 derivative securities (PSUs, including dividend equivalents) directly.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive, routine event that aligns executive incentives with long-term shareholder value, reflecting standard corporate governance practices.

Positives

• The equity awards, including RSUs and PSUs, align the executive's long-term financial interests with those of the shareholders, promoting sustained company performance.
• The performance-based vesting of PSUs, tied to annualized total shareholder return, directly incentivizes the executive to drive value for investors.
• The requirement for continued service for vesting encourages executive retention and stability within the leadership team.

Future Outlook

The future outlook for these awards is tied to the executive's continued service and the company's performance, specifically its annualized total shareholder return over the period from January 1, 2026, through December 31, 2028, which will determine the ultimate vesting percentage of the Performance Share Units.

Industry Context

StockSavvy.ai notes that executive equity compensation, including Restricted Stock Units (RSUs) and Performance Share Units (PSUs), is a standard practice across publicly traded companies, particularly in the energy sector, to align management incentives with shareholder value creation. This grant structure is consistent with typical long-term incentive plans observed in companies, which often tie a portion of executive compensation to performance metrics such as Total Shareholder Return (TSR) and continued service.

Comparison to Industry Standards

• Executive equity compensation, including RSUs and PSUs, is a standard practice across publicly traded companies, particularly in the energy sector, to align management incentives with shareholder value creation.
• This grant structure is consistent with typical long-term incentive plans observed in companies like EQT Corporation or Pioneer Natural Resources, which often tie a portion of executive compensation to performance metrics such as Total Shareholder Return (TSR) and continued service.

Corporate Governance

Stakeholder Impact

• Shareholders: The equity awards align the General Counsel's interests with long-term shareholder value creation through vesting conditions tied to continued service and Total Shareholder Return (TSR).
• Employees: The grant is part of the company's compensation strategy, potentially influencing overall employee morale and retention through a structured incentive program, though specific impact on general employees is not detailed.

Next Steps

• Continued service of the reporting person with Kinetik Holdings Inc. through January 1, 2029, for RSU vesting.
• Company performance measurement for annualized total shareholder return from January 1, 2026, through December 31, 2028, to determine PSU vesting percentage.

Key Dates

Recommendation

This Form 4 reports a routine executive equity grant as part of Kinetik Holdings Inc.'s compensation plan. It does not contain new material information that would significantly alter the company's financial outlook or investment thesis, thus warranting a 'hold' recommendation for existing investors.

Keywords

Kinetik Holdings, KNTK, equity award, restricted stock units, performance share units, executive compensation, insider transaction, Form 4, corporate governance