Kinetik Holdings Inc. (KNTK) saw its stock soar by 5.35% in pre-market trading on Thursday, following the release of its first-quarter earnings report for 2025. The surge comes as a surprise to many investors, given the mixed nature of the financial results.

The oil and gas transportation services company reported adjusted earnings of 5 cents per share for the quarter ended March 31, falling short of the mean analyst expectation of 32 cents per share. This figure also represents a decrease from the 12 cents per share reported in the same quarter last year. However, Kinetik's revenue showed significant growth, rising 29.8% to $443.26 million, surpassing analysts' expectations of $438.77 million.

The positive stock movement appears to be driven by investor optimism regarding the company's revenue growth, despite the earnings miss. This reaction suggests that the market may be focusing on Kinetik's top-line performance and potential for future growth. It's worth noting that prior to this surge, Kinetik's shares had fallen by 22.3% this quarter and lost 28.9% year-to-date, indicating that today's rally might also be influenced by oversold conditions and a potential shift in investor sentiment.