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(NYSE: KNTK) is exploring strategic alternatives including a potential sale, according to a September 9 Bloomberg report, and improving cash flows give the company credible standing in any negotiation.
The complication is that KNTK shares surged more than 5% in after-hours trading on the news, compressing whatever gap between fundamental value and deal price a buyer might have hoped to work with.
The case for a transaction starts with the financials. Adjusted EBITDA climbed to $280.8 million in the second quarter from $251.2 million in the first, while free cash flow reached $105.2 million over the same period.
Management raised its full-year 2026 adjusted EBITDA guidance to a range of $1.04 billion to $1.10 billion, with the $1.07 billion midpoint sitting approximately 7% above the original outlook's midpoint.
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