Kinetik Holdings (Kinetik Holdings) Gross Margin % : 38.56% (As of Dec. 2023)

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What is Kinetik Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Kinetik Holdings's Gross Profit for the three months ended in Dec. 2023 was $135 Mil. Kinetik Holdings's Revenue for the three months ended in Dec. 2023 was $349 Mil. Therefore, Kinetik Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 38.56%.

The historical rank and industry rank for Kinetik Holdings's Gross Margin % or its related term are showing as below:

KNTK' s Gross Margin % Range Over the Past 10 Years
Min: 6.78 Med: 28.77 Max: 36.59
Current: 36.59

During the past 6 years, the highest Gross Margin % of Kinetik Holdings was 36.59%. The lowest was 6.78%. And the median was 28.77%.

KNTK's Gross Margin % is ranked better than
60.93% of 929 companies
in the Oil & Gas industry
Industry Median: 27.82 vs KNTK: 36.59

Kinetik Holdings had a gross margin of 38.56% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Kinetik Holdings was 29.20% per year.

Kinetik Holdings Gross Margin % Historical Data

The historical data trend for Kinetik Holdings's Gross Margin % 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.

* Premium members only.

Kinetik Holdings Gross Margin % Chart

Kinetik Holdings Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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27.94

29.59

27.92

33.92

36.59

Kinetik Holdings Quarterly Data
	Dec18	Dec19	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial											35.34	34.27	39.25	34.09	38.56

Competitive Comparison of Kinetik Holdings's Gross Margin %

For the Oil & Gas Midstream subindustry, Kinetik Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Kinetik Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Kinetik Holdings's Gross Margin % falls into.

Kinetik Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Kinetik Holdings's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	459.7	/	1256.412
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1256.412 - 796.707)	/	1256.412
	=	36.59 %

Kinetik Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	134.5	/	348.868
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(348.868 - 214.336)	/	348.868
	=	38.56 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Kinetik Holdings (NYSE:KNTK) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Kinetik Holdings had a gross margin of 38.56% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Kinetik Holdings Gross Margin % Related Terms

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Kinetik Holdings (Kinetik Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Kinetik Holdings Inc (NYSE:KNTK) » Definitions » Gross Margin %

Comparable Companies

VNOM HESM DHT NS TNK GLNG INSW LPG GEL HEP TSX:ENB EPD WMB ET LNG OKE KMI MPLX TSX:TRP CQP

Traded in Other Exchanges

N/A

Address

2700 Post Oak Boulevard, Suite 300, Houston, TX, USA, 77056-4400

Website

https://www.kinetik.com

Kinetik is a midstream operator that provides gathering and processing services to gas and oil producers as well as pipeline transportation. It operates exclusively in Texas, serving the Permian Basin and connecting fields with market hubs and other large pipelines. In addition to directly operating pipelines, Kinetik also holds ownership stakes in several pipelines that transport molecules to the Gulf Coast enabling it to obtain exposure to export markets and international demand.

Executives

Kevin S Mccarthy	director	C/O KAYNE ANDERSON CAPITAL ADVISORS, LP, 1800 AVENUE OF THE STARS, SECOND FLOOR, LOS ANGELES CA 90067
Jamie Welch	director, officer: See Remarks	3738 OAK LAWN AVE., DALLAS TX 75219
Apache Corp	10 percent owner	2000 POST OAK BLVD, STE 100, HOUSTON TX 77056-4400
Trevor Howard	officer: See Remark	2700 POST OAK BLVD., SUITE 300, HOUSTON TX 77056
Todd Carpenter	officer: See Remarks	2001 BRYAN STREET, SUITE 3700, DALLAS TX 75201
Matthew Wall	officer: Executive Vice President, COO	2700 POST OAK BLVD, SUITE 300, HOUSTON TX 77056
Steven Stellato	officer: See Remarks	645 HAMILTON STREET, SUITE 500, ALLENTOWN PA 18101
Anne Psencik	officer: Chief Strategy Officer	2700 POST OAK BLVD, SUITE 300, HOUSTON TX 77056
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 Vii/bep Ii Holdings Manager L.l.c.	10 percent owner	C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
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
John-paul Munfa	director	C/O THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154