Form 4: Kinetik Holdings Officer Receives Equity Awards

Steven Stellato, EVP and Chief Accounting Officer of Kinetik Holdings Inc., was granted restricted stock units and performance share units.

Summary

• Steven Stellato, EVP, Chief Accounting Officer and Administrative Officer of Kinetik Holdings Inc., received equity awards on February 20, 2026.
• He was granted 20,226 shares of Class A Common Stock in the form of Restricted Stock Units (RSUs). These RSUs generally vest on January 1, 2029, contingent on continued service.
• He also received 10,113 Performance Share Units (PSUs), which represent a contingent right to receive Class A Common Stock. Vesting for these PSUs is tied to continued service and the company's annualized total shareholder return from January 1, 2026, to December 31, 2028, with a payout range of 0% to 200% of the target.
• Additionally, 618 dividend equivalent shares accrued on previously granted PSUs were reported, which will be paid out in Class A Common Stock upon the vesting of the underlying units.
• Following these transactions, Steven Stellato beneficially owns 389,044 shares of Class A Common Stock and 29,077 Performance Share Units.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive signal, as it represents routine executive compensation designed to align management incentives with long-term shareholder value, without indicating any immediate operational or financial changes.

Positives

• Grant of equity awards to a key executive, Steven Stellato, aligns management's interests with shareholder value.
• Performance Share Units (PSUs) are tied to the company's annualized total shareholder return, incentivizing long-term performance.

Risks

• The vesting of RSUs and PSUs is subject to the reporting person's continued service, meaning the awards could be forfeited if employment ceases before vesting dates.
• PSU vesting is contingent on the company's total shareholder return performance, introducing variability in the final number of shares received.

Future Outlook

The vesting of Performance Share Units (PSUs) is tied to the company's annualized total shareholder return over the period from January 1, 2026, through December 31, 2028, indicating a focus on future stock performance.

Industry Context

StockSavvy.ai notes that equity grants, particularly those tied to performance metrics like total shareholder return, are a common practice in the energy infrastructure sector to align executive incentives with long-term company performance and shareholder value creation. This is standard practice for retaining key talent in competitive industries.

Comparison to Industry Standards

• The use of both time-based Restricted Stock Units (RSUs) and performance-based Performance Share Units (PSUs) is a standard compensation structure for senior executives in publicly traded companies, including those in the midstream energy sector like Kinetik Holdings.
• The vesting period for RSUs (approximately 3 years) and the performance period for PSUs (3 years) are consistent with typical long-term incentive plans designed to encourage executive retention and sustained performance.
• The 0%-200% payout range for PSUs based on total shareholder return is a common mechanism to reward outperformance and penalize underperformance relative to targets, similar to plans seen at peers such as Energy Transfer LP or Kinder Morgan, Inc.

Stakeholder Impact

• Shareholders: The equity grants, particularly performance-based units, aim to align executive interests with shareholder value creation, potentially benefiting shareholders through improved long-term performance.
• Employees: The grants are part of executive compensation, which can set a precedent for broader employee incentive programs, though this filing specifically concerns a senior officer.

Next Steps

• Continued service of Steven Stellato with Kinetik Holdings Inc.
• Monitoring of Kinetik Holdings Inc.'s annualized total shareholder return from January 1, 2026, through December 31, 2028, for PSU vesting.
• Vesting of RSUs on January 1, 2029.
• Payment of dividend equivalents in Class A Common Stock upon vesting of underlying PSUs.

Key Dates

Recommendation

This Form 4 filing details a routine equity compensation grant to a key executive, which is a standard practice for aligning management incentives with long-term company performance. It does not provide new information that would fundamentally alter the investment thesis for Kinetik Holdings Inc., thus a 'hold' recommendation is appropriate as it neither signals a strong buy nor a strong sell.

Keywords

Kinetik Holdings, KNTK, Steven Stellato, SEC Form 4, Insider Transaction, Equity Grant, Restricted Stock Units, Performance Share Units, Executive Compensation, Shareholder Return