Kinetik (KNTK) closed at $55.30 on October 16 and has returned 18.9% over the last six months, compared with 10.5% for the Insider Monkey Billionaire Index and 9.3% for the State Street SPDR S&P 500 ETF Trust. Earnings grew 65.40% and revenue 36.30% in the latest three months, suggesting existing gathering systems are filling up at little extra cost, and the shares are up 50.89% over the past year. The company's operations are concentrated in the Permian Basin, so a slowdown there would hit the whole business, and its debt equals 136.57% of equity, typical of peers but heavier for a company of its size. The stock trades at 21.41 times expected next-year earnings and yields 5.86%, which the author describes as paying a premium multiple for both growth and income.
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