US pipeline operator Kinetik exploring potential sale, sources say (updated)

Kinetik Holdings

09/09/2026 22:55

Adds stakeholder comment responses, additional context
Sept 9 (Reuters) - U.S. pipeline operator Kinetik Holdings KNTK.N is in the early stages of exploring a potential sale of the company, three sources familiar with the matter said on Wednesday. 
The move comes at a time of significant interest, both from energy companies and financial investors, in owning energy infrastructure. This is supported by a number of factors, including the importance of supplying natural gas for power generation used by data centers.
Headquartered in both Houston and Midland, Texas, Kinetik is working with advisers on the process, said the sources, who cautioned that no deal was guaranteed and spoke on condition of anonymity to discuss confidential deliberations.
Investment firm Blackstone BX.N controls around 48% of Kinetik, with infrastructure investor I Squared Capital owning roughly 19%, according to regulatory filings. Their ownership traces back to EagleClaw Midstream, which was combined with Altus Midstream in 2022 to create Kinetik.
Kinetik and Blackstone declined comment. I Squared did not respond to a comment request.
Kinetik focuses on transporting natural gas and crude oil from wells in the Delaware portion of the Permian basin of Texas and New Mexico. It has more than 4,600 miles (7,400 km) of pipelines, as well as associated compression and processing infrastructure, according to its website.
Its position in the Permian would make Kinetik an attractive takeover target for another midstream company seeking to grow its operations in the heart of the U.S. shale industry.
Dealmaking involving pipeline companies has been robust in recent months. Enbridge ENB.TO said on Wednesday it was buying the oil business of privately owned Tallgrass Energy for $2.55 billion. ONEOK OKE.N announced on August 30 it would acquire for $4.43 billion the Midland basin assets of Brazos Midstream from buyout firms Old Ironsides Energy and EnCap Flatrock Midstream.
Bloomberg News had earlier on Wednesday reported Kinetik was exploring sale options, citing people familiar with the matter.
     

 (Reporting by David French in New York and Pooja Menon in Bengaluru; Editing by Shailesh Kuber, Franklin Paul and Chris Reese)
 ((Pooja.Menon@thomsonreuters.com;))