What's Behind This Nearly $70 Million Exit From Kinetik Stock?

By Jonathan Ponciano – Mar 4, 2026 at 10:14AM ESTKey PointsBrave Warrior Advisors sold 1,608,928 shares of Kinetik Holdings in the fourth quarter, exiting its stake in the energy firm.The quarter-end position value declined by $68.77 million as a result.The position previously represented 1.6% of the fund’s AUM as of the prior quarter.On February 17, 2026, Brave Warrior Advisors, LLC reported selling out its entire position in Kinetik Holdings (KNTK +0.11%), an estimated $68.77 million transaction.What happenedAccording to an SEC filing dated February 17, 2026, Brave Warrior Advisors sold its entire holding of 1,608,928 shares in Kinetik Holdings. The quarter-end value of the Kinetik Holdings position decreased by $68.77 million as a result.What else to knowTop holdings after the filing:NYSE:OMF: $522.79 million (12.2% of AUM)NYSE:SNX: $475.21 million (11.1% of AUM)NYSE:ELV: $438.82 million (10.3% of AUM)NASDAQ:SLM: $347.23 million (8.1% of AUM)NYSE:AN: $320.61 million (7.5% of AUM)As of Wednesday, shares of Kinetik Holdings were priced at $45.89, down 16% over the past year and well underperforming the S&P 500, which is instead up about 16%.Company overviewMetricValuePrice (as of Wednesday)$45.89Market Capitalization$2.9 billionRevenue (TTM)$1.72 billionDividend Yield7%Company snapshotKinetik Holdings provides natural gas, natural gas liquids, crude oil, and water gathering, transportation, compression, processing, and treating services in the Texas Delaware Basin.The company operates a contract-driven midstream business model focused on stable, fee-based revenue streams.It serves upstream oil and gas producers, primarily in the Texas Delaware Basin, with a focus on integrated energy companies and large independents.Kinetik Holdings is a midstream energy company with a market capitalization of nearly $3 billion and a significant presence in the Texas Delaware Basin. The company leverages its integrated infrastructure network to provide essential services to upstream producers, supporting efficient hydrocarbon transport and processing. With a high dividend yield and contract-driven business model, Kinetik targets stable returns and operational resilience in a competitive midstream landscape.What this transaction means for investorsBrave Warrior’s move marks a decisive retreat from midstream energy just as the company is guiding to another year near $1 billion in EBITDA.Kinetik generated $987.7 million in Adjusted EBITDA in 2025 and $620.5 million in distributable cash flow, covering its dividend at roughly 1.2 times. Net debt stood at about $3.8 billion, or 3.9 times Adjusted EBITDA, which is within its targeted leverage range. Management is guiding to $950 million to $1.05 billion in Adjusted EBITDA for 2026, a roughly 7% increase at the midpoint, even as it navigates volatile Waha gas pricing and production shut-ins.Shares around $46 are down about 16% over the past year, badly trailing the broader market. Yet the business remains contract driven, with amended gathering agreements extending into the mid 2030s and new projects like the ECCC Pipeline and Kings Landing expansion expected to bolster volumes and margins.Against a portfolio now dominated by consumer finance, healthcare and distribution names, this sale reduces commodity and infrastructure exposure. For long term investors, the key question is whether predictable fee based cash flow and capital discipline outweigh basin level risks. The exit suggests that risk calculus shifted.About the AuthorJonathan Ponciano is a contributing stock market analyst at The Motley Fool. He has nearly a decade of experience as a financial journalist, most recently as an editor and senior reporter at Forbes focused on markets, technology, and entrepreneurship. Jonathan has also written for Investopedia and the Los Angeles Business Journal. He holds a dual B.A. in Business Journalism and Economics from the University of North Carolina at Chapel Hill and an M.B.A. from Columbia Business School. A North Carolina native now based in New York City, Jonathan has also lived in Mexico City and Los Angeles.CMFjonponcStocks MentionedKinetikNYSE: KNTK$46.46(+0.11%)+$0.05*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.