Kinetik Holdings Inc.KNTK

Kinetik Holdings Inc. Earnings Per Share Disclosure

10-KFiled Feb 26, 20262 min read
NET INCOME PER SHARE
EPS is computed by dividing net income attributable to common shareholders by the weighted average number of shares of Common Stock outstanding during the period. Diluted EPS is computed by dividing net income attributable to the Company by the weighted average number of shares of Common Stock outstanding and the assumed issuance of all potentially dilutive securities. Each issue of potential common shares is evaluated separately in sequence from the most dilutive to the least dilutive. The dilutive effect of share-based payment awards and stock options is calculated using the treasury stock method, which assumes share purchases are calculated using the average share price of the Company’s Common Stock during the applicable period. The Company uses the if-converted method to compute potential common shares exchanged from potentially dilutive Common Units. Under the if-converted method, dilutive Common Units are assumed to be exchanged from the date of the issuance and the resulting shares of Class A Common Stock are included in the denominator of the diluted EPS calculation for the period being presented.
The following table sets forth a reconciliation of net income and weighted average shares outstanding used in computing basic and diluted net income per common share:
Year Ended December 31,
202520242023
(In thousands, except per share amounts)
Net income attributable to Class A common shareholders$178,260 $80,014 $289,442 
Less: Net income available to participating unvested restricted Class A common shareholders(1)
(13,223)(18,829)(17,406)
      Total net income attributable to Class A common shareholders - basic
$165,037 $61,185 $272,036 
Net income attributable to Class A Common shareholders - basic
$165,037 $61,185 $272,036 
Net income attributable to Common Units limited partners(2)
— — 97,010 
      Total net income attributable to Class A common shareholders - diluted
$165,037 $61,185 $369,046 
Weighted average shares outstanding - basic
61,962 59,284 51,823 
Dilutive effect of unvested Class A common shares(3)
703 831 269 
Dilutive effect of exchange of outstanding Common Units(2)
— — 94,105 
Weighted average shares outstanding - diluted
62,665 60,115 146,197 
Net income available per common share - basic$2.66 $1.03 $5.25 
Net income available per common share - diluted$2.63 $1.02 $2.52 
(1)Represents dividends paid to unvested Class A Shares, and Class C Shares, RSUs and PSUs.
(2)The effect of an assumed exchange of outstanding Common Units (and the cancellation of a corresponding number of shares of outstanding Class C Common Stock) would have been anti-dilutive for the years ended December 31, 2025 and 2024.
(3)Includes dilutive effect from both RSUs and PSUs on unvested Class A common shares.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Mar 3, 2025
2023Mar 5, 2024
2022Mar 7, 2023

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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