Kinetik Holdings Inc (NYSE:KNTK) moved higher in premarket trading Thursday, gaining about 3.6%, after a report indicated the company is evaluating a possible sale following unsolicited interest from Western Midstream Partners.
According to the Financial Times, which cited people familiar with the matter, the $7.2 billion midstream operator has begun assessing strategic alternatives after being approached in recent weeks by Western Midstream, a company backed by Occidental Petroleum. While talks are said to be preliminary and no formal offer has been made, Kinetik is reportedly considering launching a broader sale process to test appetite among strategic buyers and infrastructure investors.
Kinetik operates roughly 4,600 miles of pipeline infrastructure across the Delaware Basin in western Texas and New Mexico, a key sub-basin of the Permian. Its footprint in one of the most prolific oil and gas regions in the United States positions it as a potentially attractive acquisition target.
The reported approach comes as dealmaking activity accelerates across the U.S. natural gas sector. Companies are seeking to expand scale and secure additional pipeline capacity amid surging production and rising demand tied to liquefied natural gas exports and energy-intensive data centers.
With the Delaware Basin playing a central role in U.S. output growth, Kinetik’s asset base is viewed as strategically important within the evolving natural gas infrastructure landscape.