$7.2 B Sale Interest Drives 11% After-Hours Spike in Kinetik Shares
Kinetik Holdings is weighing a potential sale after Occidental-backed Western Midstream approached the $7.2 billion midstream company, which operates 4,600 miles of Permian Basin pipelines. Kinetik shares have soared 22% year-to-date and spiked 11.1% in after-hours trading on news of the approach.
1. Sale Interest from Western Midstream
Kinetik is exploring a potential sale after receiving an approach from Western Midstream, a midstream operator partly owned by Occidental Petroleum. Discussions are at an early stage with no formal bid yet, reflecting strategic interest in Kinetik’s asset portfolio.
2. Extensive Permian Basin Operations
The company operates approximately 4,600 miles of natural gas pipelines across the Delaware segment of the Permian Basin in Texas and New Mexico, underpinning its $7.2 billion enterprise value.
3. Share Price Reaction
Kinetik shares have rallied 22% year-to-date and jumped 11.1% in after-hours trading on the sale interest news, indicating strong investor enthusiasm for a potential transaction.