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KNTK (Kinetik Holdings) Degree of Operating Leverage : 1.37 (As of Mar. 2025)


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What is Kinetik Holdings Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Kinetik Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.37. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Kinetik Holdings's Degree of Operating Leverage or its related term are showing as below:

KNTK's Degree of Operating Leverage is ranked worse than
56.55% of 909 companies
in the Oil & Gas industry
Industry Median: 0.97 vs KNTK: 1.37

Kinetik Holdings Degree of Operating Leverage Historical Data

The historical data trend for Kinetik Holdings's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Kinetik Holdings Degree of Operating Leverage Chart

Kinetik Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 1,888.80 -1.80 3.20 -2.86 1.95

Kinetik Holdings Quarterly Data
Dec19 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.02 1.80 2.35 1.95 1.37

Competitive Comparison of Kinetik Holdings's Degree of Operating Leverage

For the Oil & Gas Midstream subindustry, Kinetik Holdings's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kinetik Holdings's Degree of Operating Leverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Kinetik Holdings's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Kinetik Holdings's Degree of Operating Leverage falls into.


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Kinetik Holdings Degree of Operating Leverage Calculation

Kinetik Holdings's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 467.673 (Mar. 2025) / 365.664 (Mar. 2024) - 1 )/( 1584.798 (Mar. 2025) / 1316.766 (Mar. 2024) - 1 )
=0.279/0.2036
=1.37***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Kinetik Holdings  (NYSE:KNTK) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Kinetik Holdings Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Kinetik Holdings's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Kinetik Holdings Business Description

Industry
Traded in Other Exchanges
N/A
Address
2700 Post Oak Boulevard, Suite 300, Houston, TX, USA, 77056-4400
Kinetik Holdings Inc is a midstream operator that provides gathering and processing services to gas and oil producers as well as pipeline transportation. In addition to directly operating pipelines, Kinetik also holds ownership stakes in several pipelines. The company operates in two reportable segments which include The Midstream Logistics segment operates under three service offerings, 1) gas gathering and processing, 2) crude oil gathering, stabilization, and storage services, and 3) produced water gathering and disposal. The Pipeline Transportation segment consists of three EMI pipelines originating in the Permian Basin with various access points to the U.S. Gulf Coast, Kinetik NGL Pipelines, and Delaware Link Pipeline.
Executives
Isq Global Fund Ii Gp Llc 10 percent owner 600 BRICKELL AVENUE, PENTHOUSE, MIAMI FL 33131-3067
Matthew Wall officer: Executive Vice President, COO 2700 POST OAK BLVD, SUITE 300, HOUSTON TX 77056
Todd Carpenter officer: See Remarks 2001 BRYAN STREET, SUITE 3700, DALLAS TX 75201
Trevor Howard officer: See Remark 2700 POST OAK BLVD., SUITE 300, HOUSTON TX 77056
Jamie Welch director, officer: See Remarks 3738 OAK LAWN AVE., DALLAS TX 75219
Anne Psencik officer: Chief Strategy Officer 2700 POST OAK BLVD, SUITE 300, HOUSTON TX 77056
Apache Corp 10 percent owner 2000 POST OAK BLVD, STE 100, HOUSTON TX 77056-4400
Steven Stellato officer: See Remarks 645 HAMILTON STREET, SUITE 500, ALLENTOWN PA 18101
Kevin S Mccarthy director C/O KAYNE ANDERSON CAPITAL ADVISORS, LP, 1800 AVENUE OF THE STARS, SECOND FLOOR, LOS ANGELES CA 90067
Jesse Krynak director 2700 POST OAK BLVD., SUITE 300, HOUSTON TX 77056
Deborah L Byers director C/O EXCELERATE ENERGY, INC., 2445 TECHNOLOGY FOREST BLVD., LEVEL 6, THE WOODLANDS TX 77381
Ronald Schweizer director 2700 POST OAK BLVD, SUITE 300, HOUSTON TX 77056
Bcp Raptor Aggregator L.p. 10 percent owner 345 PARK AVENUE, 43RD FLOOR, NEW YORK NY 10154
I Squared Capital, Llc 10 percent owner 600 BRICKELL AVENUE, PENTHOUSE, MIAMI FL 33131-3067
Bcp Vii/bep Ii Holdings Manager L.l.c. 10 percent owner C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154