Form 4: Kinetik Holdings Officer Reports Stock Transactions

Steven Stellato, EVP and Chief Accounting Officer of Kinetik Holdings Inc., reported the acquisition of restricted stock units and dividend equivalent shares, alongside the disposition of shares for tax obligations.

Summary

• Steven Stellato, EVP, Chief Accounting Officer, and Chief Administrative Officer of Kinetik Holdings Inc. (KNTK), reported transactions on January 2, 2026.
• Acquired 3,596 shares of Class A Common Stock through an award of restricted stock units (RSUs) under the company's compensation plan. These RSUs are expected to vest on January 1, 2027.
• Disposed of 11,972 shares of Class A Common Stock at a price of $36.05 per share to satisfy tax liabilities related to the vesting of previously granted RSUs (from March 10, 2023, and May 9, 2025).
• Acquired 1,219 dividend equivalent shares accrued on Performance Share Units (PSUs) under the company's compensation and dividend reinvestment plans. These will be paid out in Class A Common Stock upon vesting of the underlying PSUs.
• Following these transactions, Stellato beneficially owns 368,818 shares of Class A Common Stock and 18,346 Performance Share Units.

Sentiment

Score: 6

Explanation: The filing reflects standard executive compensation activities, including stock awards and tax-related dispositions. It's a neutral event, slightly positive due to new awards, but offset by tax-related sales.

Positives

• Steven Stellato received an award of 3,596 restricted stock units (RSUs), aligning his interests with shareholders.
• Accrued 1,219 dividend equivalent shares on existing Performance Share Units (PSUs), indicating ongoing participation in company performance and dividends.

Negatives

• 11,972 shares of Class A Common Stock were disposed of to cover tax liabilities, which is a common event but reduces direct share ownership.

Future Outlook

The vesting of 3,596 restricted stock units is scheduled for January 1, 2027, contingent on the reporting person's continued employment. Dividend equivalent shares on Performance Share Units will be paid out in Class A Common Stock upon the vesting of the underlying units.

Industry Context

This filing reflects routine executive compensation and tax-related transactions common across publicly traded companies, particularly in the energy infrastructure sector where Kinetik Holdings operates. Such filings provide transparency into insider holdings but do not typically indicate broader industry trends.

Stakeholder Impact

• Shareholders: Provides transparency into executive stock ownership and compensation practices. The disposition for tax purposes is a common event and does not necessarily signal a lack of confidence. The acquisition of RSUs and PSUs aligns executive interests with long-term shareholder value.

Next Steps

• The 3,596 restricted stock units are expected to vest on January 1, 2027, subject to continued employment.
• Dividend equivalent shares on Performance Share Units will be paid out in Class A Common Stock when the underlying PSUs vest.

Key Dates

Recommendation

This Form 4 filing details routine executive compensation events, including the vesting of restricted stock units and the subsequent sale of shares to cover tax obligations, along with new equity awards. These transactions are standard and do not indicate any fundamental change in the company's operations or outlook. Therefore, it provides no new information that would warrant a change in investment recommendation; a 'hold' stance is appropriate based solely on this filing.

Keywords

Kinetik Holdings Inc., KNTK, Steven Stellato, Form 4, Insider Trading, Restricted Stock Units, RSUs, Performance Share Units, PSUs, Stock Award, Tax Withholding, Beneficial Ownership, Executive Compensation