Oneok (OKE) AI Stock Analysis

• Market Cap: $50.51B
• Dividend Yield: 4.94%
• Average Volume (3M): 4.27M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.05
• Revenue Growth: 24.16%
• EPS Growth: -6.58%
• Country: US
• Employees: 5,177
• Sector: Energy
• Sector Strength: 62
• Industry: Oil & Gas Midstream
• EPS (TTM): 5.17
• Shares Outstanding: 624,621,640
• 10 Day Avg. Volume: 3,850,913
• 30 Day Avg. Volume: 4,270,086
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.86
• Price to Cash Flow (P/CF): 9.60
• P/FCF Ratio: 12.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $114.17
• Price Target Upside: 45.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

ONEOK's stock score is driven by its robust financial performance, highlighted by strong revenue growth and cash generation, despite some balance sheet irregularities. Technical indicators suggest moderate bullish momentum, while valuation reflects a reasonable P/E ratio and attractive dividend yield. Positive earnings call sentiment, supported by strategic acquisitions and growth projects, enhances the outlook, though market overcapacity concerns persist.

Positive Factors

Acquisitions and Growth

Recent acquisitions have transformed OKE into a more integrated and diversified company better positioned to capture market share.

Financial Performance

OKE's export JV with MPLX creates strategic value and adds to a proposition of competitive growth coupled with rapidly increasing capital return.

Project Expansion

The recently announced LPG export facility creates a fully integrated and scalable wellhead-to-water NGL system out of the Permian.

Negative Factors

Market Position

Investors may wait to ascribe full credit given prevailing competition and the perception incumbents are willing to sacrifice margin for market share.

Stock Performance

Despite these positive developments, OKE has underperformed YTD, lagging c-corp peers despite top quartile forecast growth and capital return program.

Valuation

OKE currently trades at a >0.5x EV/EBITDA discount to c-corp peers, presenting a compelling upside.

Oneok Business Overview & Revenue Model

Company Description

ONEOK, Inc., together with its subsidiaries, engages in gathering, processing, storage, and transportation of natural gas in the United States. It operates through Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines segments. The company owns natural gas gathering pipelines and processing plants in the Mid-Continent and Rocky Mountain regions. It also gathers, treats, fractionates, and transports natural gas liquids (NGL), as well as stores, markets, and distributes NGL products. The company owns NGL gathering and distribution pipelines in Oklahoma, Kansas, Texas, New Mexico, Montana, North Dakota, Wyoming, and Colorado; terminal and storage facilities in Kansas, Missouri, Nebraska, Iowa, and Illinois; and NGL distribution and refined petroleum products pipelines in Kansas, Missouri, Nebraska, Iowa, Illinois, and Indiana, as well as owns and operates truck- and rail-loading, and -unloading facilities connected to NGL fractionation, storage, and pipeline assets. In addition, it operates regulated interstate and intrastate natural gas transmission pipelines and natural gas storage facilities. Further, the company owns and operates a parking garage in downtown Tulsa, Oklahoma; and leases excess office space. It operates 17,500 miles of natural gas gathering pipelines; 1,500 miles of FERC-regulated interstate natural gas pipelines; 5,100 miles of state-regulated intrastate transmission pipeline; six NGL storage facilities; and eight NGL product terminals. It serves integrated and independent exploration and production companies; NGL and natural gas gathering and processing companies; crude oil and natural gas production companies; propane distributors; municipalities; ethanol producers; and petrochemical, refining, and NGL marketing companies, as well as natural gas distribution and electric generation companies, producers, processors, and marketing companies. The company was founded in 1906 and is headquartered in Tulsa, Oklahoma.

How the Company Makes Money

ONEOK makes money primarily through its fee-based services in the midstream energy sector. The company generates revenue by transporting natural gas and NGLs through its pipeline networks, charging customers for the use of its infrastructure. Its revenue streams are diversified across three main segments: Natural Gas Gathering and Processing, which involves collecting and refining natural gas from production sites; Natural Gas Liquids, where it processes and transports NGL products such as ethane, propane, and butane; and Natural Gas Pipelines, focusing on the interstate and intrastate transportation of natural gas. ONEOK benefits from long-term contracts with producers and marketers, providing stable cash flows and reducing exposure to commodity price volatility. Additionally, strategic partnerships and expansions of its infrastructure network enhance its capacity and reach, further contributing to its earnings.

Oneok Financial Statement Overview

Summary

Oneok shows strong revenue growth and cash generation, highlighted by healthy EBITDA and net profit margins. However, the negative EBIT and irregularities in the 2024 balance sheet data could point to underlying financial management issues. The company's cash flow stability is a positive, but the lack of clarity in equity reporting poses risks.

Income Statement

The company has shown a strong revenue growth rate of 22.72% from 2023 to 2024, alongside a robust net profit margin of 13.99% in 2024. However, the EBIT margin is negative due to an EBIT loss of $305 million, which poses a concern. The EBITDA margin remains healthy at 17.84%, indicating good operational cash flow generation.

Balance Sheet

The balance sheet reflects a significant increase in total assets, but the data shows stockholders' equity of zero in 2024, which is unusual and raises concerns about financial reporting accuracy. With no total liabilities reported in 2024, this might indicate a restructuring or unusual financial management practices. Past trends displayed a decreasing debt-to-equity ratio, which was a positive sign before 2024.

Cash Flow

Operating cash flow has increased to $4.89 billion in 2024, and free cash flow has grown substantially, demonstrating strong cash generation capabilities. The free cash flow to net income ratio is favorable. However, investing cash flow remains negative, suggesting high capital expenditures or investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
21.70B	17.68B	22.39B	16.54B	8.54B
	Gross Profit
7.25B	4.98B	3.85B	3.66B	2.85B
	EBIT
4.99B	4.07B	2.81B	2.60B	2.14B
	EBITDA
3.87B	5.11B	3.52B	3.30B	2.55B
	Net Income Common Stockholders
3.04B	2.66B	1.72B	1.50B	612.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
733.00M	338.00M	220.23M	146.39M	524.50M
	Total Assets
64.07B	44.27B	24.38B	23.62B	23.08B
	Total Debt
32.08B	21.76B	13.70B	13.73B	14.34B
	Net Debt
31.34B	21.43B	13.48B	13.59B	13.81B
	Total Liabilities
41.94B	27.78B	17.89B	17.61B	17.04B
	Stockholders Equity
17.04B	16.48B	6.49B	6.02B	6.04B
Cash Flow		Free Cash Flow
4.89B	2.83B	1.70B	1.85B	-296.31M
	Operating Cash Flow
4.89B	4.42B	2.91B	2.55B	1.90B
	Investing Cash Flow
-6.61B	-6.40B	-1.14B	-665.29M	-2.27B
	Financing Cash Flow
2.12B	2.10B	-1.69B	-2.26B	875.00M

Oneok Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 78.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OKE, the sentiment is Negative. The current price of 78.71 is below the 20-day moving average (MA) of 95.74, below the 50-day MA of 96.24, and below the 200-day MA of 94.12, indicating a bearish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 54.06 is Neutral, neither overbought nor oversold. The STOCH value of 27.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OKE.

Oneok Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPLX	85 Outperform	$49.57B	11.52	31.78%	7.65%	4.30%	10.45%
ET	77 Outperform	$54.45B	12.36	13.40%	8.10%	5.20%	18.35%
EPD	77 Outperform	$66.81B	11.58	20.78%	7.05%	12.71%	6.74%
KMI	71 Outperform	$56.19B	21.61	8.54%	4.53%	-0.55%	10.02%
WMB	71 Outperform	$66.61B	30.03	17.92%	3.51%	8.06%	-30.11%
OKE	66 Neutral	$50.51B	15.63	18.11%	4.94%	24.16%	-6.58%
Sector *	57 Neutral	$7.52B	4.07	-3.52%	8.38%	-0.14%	-64.60%

Oneok Corporate Events

ONEOK to Announce Q1 2025 Earnings in April

On April 1, 2025, ONEOK announced that it will release its first quarter 2025 earnings after the market closes on April 29, 2025. A conference call and live webcast are scheduled for April 30, 2025, to discuss the earnings, highlighting the company’s commitment to transparency and stakeholder engagement.

ONEOK Announces 2025 Financial Guidance and Growth Outlook

On February 24, 2025, ONEOK announced its financial guidance for 2025 and a growth outlook for 2026. The company anticipates an 11% increase in net income and an 8% rise in earnings per share for 2025, driven by volume growth, completed projects, and expanded operations, particularly in the Permian Basin and Gulf Coast. For 2026, ONEOK expects over 15% growth in earnings per share and nearly 10% growth in adjusted EBITDA, supported by increased production and the realization of acquisition-related synergies. The guidance reflects ONEOK’s strategic focus on disciplined growth and value delivery across its operations, with significant capital expenditures planned for key projects and expansions.

ONEOK Reports Strong Financial Growth in 2024

ONEOK reported significant financial growth for the fourth quarter and full-year 2024, with net income reaching $3.1 billion and adjusted EBITDA at $6.78 billion. This growth was driven by strategic acquisitions, including EnLink and Medallion, increased volumes in the Rocky Mountain region, and a successful divestiture of an interstate pipeline. The company also completed several capital projects, such as the MB-6 fractionator and the Elk Creek pipeline expansion, further positioning itself for long-term growth. Additionally, ONEOK increased its quarterly dividend and repurchased shares, reflecting its commitment to returning value to shareholders.

Oneok Announces Leadership Change and Financial Reorganization

On February 3, 2025, Charles M. Kelley, Senior Vice President of Commercial Natural Gas Pipelines at ONEOK, announced his retirement, effective March 31, 2025. In connection with its internal reorganization, ONEOK and its associated entities executed supplemental indentures and a credit agreement guarantee, assuming various financial obligations and providing guarantees, which realign the company’s financial commitments and obligations.

ONEOK Completes Acquisition of EnLink Midstream

On January 31, 2025, ONEOK completed its acquisition of EnLink Midstream, strengthening its integrated midstream business and enhancing value for stakeholders. The acquisition was approved by EnLink unitholders and involved a share exchange, marking the end of EnLink’s public trading on the NYSE. This strategic acquisition allows ONEOK to further diversify its platform and integrate EnLink’s operations, providing potential benefits across the combined entity. The internal reorganization following the merger included assuming various obligations and providing guarantees, indicating a significant operational integration effort.

ONEOK Finalizes Acquisition of EnLink Midstream Units

On January 30, 2025, ONEOK, Inc. announced the approval by EnLink Midstream’s unitholders for its acquisition of the remaining publicly held common units of EnLink. The acquisition, which saw approximately 99.8% of the common units voting in favor, is expected to close on January 31, 2025, with EnLink’s units ceasing to trade on the NYSE. This strategic move consolidates ONEOK’s position in the midstream energy sector, enhancing its operational capacity and potentially realizing synergies, though it carries integration and market risks as highlighted in the forward-looking statements.

ONEOK to Announce Q4 and Year-End 2024 Earnings

On January 21, 2025, ONEOK announced that it will release its fourth quarter and year-end 2024 earnings on February 24, 2025, after the market closes. A conference call and live webcast, scheduled for February 25, 2025, will involve ONEOK’s management team discussing the earnings. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and future outlook, potentially impacting its market positioning and investor relations.