Oneok (OKE) AI Stock Analysis

• Market Cap: $46.39B
• Dividend Yield: 5.56%
• Average Volume (3M): 3.46M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.83
• Revenue Growth: 47.00%
• EPS Growth: 11.86%
• Country: US
• Employees: 5,177
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.34
• Shares Outstanding: 629,756,000
• 10 Day Avg. Volume: 3,627,180
• 30 Day Avg. Volume: 3,462,333
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.80
• Enterprise Value/Revenue: 2.99
• Enterprise Value/Gross Profit: 13.36
• Enterprise Value/Ebitda: 11.53
• 1Y Price Target: $93.18
• Price Target Upside: 26.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 73 Outperform
• Price Target: $83.00 ▲(13.02% Upside)

Oneok's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting robust growth and strategic expansions. However, technical analysis indicates bearish momentum, which tempers the overall score. The stock's attractive valuation further supports its investment appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business operations, supporting long-term financial stability.

Strategic Expansion

Expanding in the Permian Basin enhances strategic positioning and growth potential in a key energy region, supporting long-term competitiveness.

Debt Management

Proactive debt reduction improves financial flexibility and reduces risk, strengthening the balance sheet for future growth opportunities.

Negative Factors

High Leverage

High leverage can strain financial resources and limit strategic options, posing risks to long-term financial health if not managed carefully.

Margin Pressure

Declining margins suggest challenges in maintaining profitability, which could impact long-term earnings if cost pressures persist.

Free Cash Flow Decline

Decreasing free cash flow growth may limit the company's ability to invest in new projects or return capital to shareholders, affecting future growth.

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 generates revenue primarily through fee-based contracts for its midstream services, including gathering, processing, and transportation of natural gas and NGLs. The company operates a network of pipelines and processing facilities that allow it to collect fees for transporting and storing hydrocarbons. Key revenue streams include gathering and processing fees from producers, transportation fees from shippers, and NGL sales. Additionally, Oneok benefits from long-term contracts with producers, which provide stable cash flows. Significant partnerships with exploration and production companies further enhance its revenue potential by ensuring consistent demand for its services.

Oneok Financial Statement Overview

Summary

Oneok demonstrates strong revenue growth and profitability, though there are pressures on margins. The balance sheet shows high leverage, which could pose risks if not managed carefully. Cash flow generation remains solid, supporting the company's financial stability.

Income Statement

Oneok's income statement shows strong revenue growth with a TTM increase of 11.99%. The company maintains solid profitability with a gross profit margin of 26.58% and a net profit margin of 11.07%. However, there is a slight decline in margins compared to the previous year, indicating some pressure on profitability.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.49, indicating significant leverage. However, the company has improved its equity position, and the return on equity remains robust at 16.04%, showcasing effective use of equity to generate profits.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow growth by 6.20% TTM, but the company maintains a healthy operating cash flow to net income ratio of 0.79. The free cash flow to net income ratio of 0.54 suggests adequate cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.95B	21.64B	17.68B	22.87B	17.27B	8.46B
Gross Profit	6.26B	5.05B	5.75B	3.12B	3.02B	2.03B
EBITDA	7.26B	6.59B	5.11B	3.52B	3.30B	2.00B
Net Income	3.09B	3.04B	2.66B	1.72B	1.50B	612.81M
Balance Sheet
Total Assets	64.52B	64.07B	44.27B	24.38B	23.62B	23.08B
Cash, Cash Equivalents and Short-Term Investments	97.00M	733.00M	338.00M	220.00M	146.39M	524.50M
Total Debt	32.47B	32.08B	21.76B	13.70B	13.73B	14.34B
Total Liabilities	42.62B	41.94B	27.78B	17.89B	17.61B	17.04B
Stockholders Equity	21.83B	17.04B	16.48B	6.49B	6.02B	6.04B
Cash Flow
Free Cash Flow	2.88B	2.87B	2.83B	1.70B	1.85B	-296.31M
Operating Cash Flow	5.29B	4.89B	4.42B	2.91B	2.55B	1.90B
Investing Cash Flow	-6.79B	-6.61B	-6.40B	-1.14B	-665.29M	-2.27B
Financing Cash Flow	1.56B	2.12B	2.10B	-1.69B	-2.26B	875.00M

Oneok Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 73.44
• 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 Neutral. The current price of 73.44 is above the 20-day moving average (MA) of 73.16, below the 50-day MA of 75.45, and below the 200-day MA of 85.85, indicating a neutral trend. The MACD of -0.57 indicates Negative momentum. The RSI at 50.82 is Neutral, neither overbought nor oversold. The STOCH value of 73.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OKE.

Oneok Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPLX	81 Outperform	52.09B	12.13	31.19%	7.45%	4.67%	2.07%
EPD	74 Outperform	68.64B	11.84	20.20%	6.79%	-0.55%	2.14%
OKE	73 Outperform	$46.39B	14.36	16.05%	5.56%	47.00%	11.86%
KMI	70 Outperform	61.82B	22.83	8.85%	4.15%	3.95%	11.32%
TRGP	69 Neutral	37.05B	24.65	58.90%	2.04%	5.88%	46.35%
WMB	68 Neutral	76.76B	31.72	19.53%	3.12%	10.57%	-14.22%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Oneok Corporate Events

ONEOK Completes $3 Billion Public Offering

On August 12, 2025, ONEOK, Inc. completed a significant public offering of notes totaling $3 billion, with the proceeds intended to repay outstanding commercial paper and senior notes due in September 2025. This strategic financial move is expected to strengthen ONEOK’s financial position and provide flexibility for general corporate purposes, potentially impacting its operations and market positioning positively.

ONEOK Announces $3 Billion Senior Notes Offering

On August 6, 2025, ONEOK, Inc. announced the pricing of a $3.0 billion senior notes offering, which includes $750 million of 7-year notes, $1.0 billion of 10-year notes, and $1.25 billion of 30-year notes. The proceeds from this offering are intended to repay outstanding commercial paper and senior notes due September 15, 2025, with any remaining funds allocated for general corporate purposes. This strategic financial move is expected to strengthen ONEOK’s financial position by addressing its debt obligations and potentially enhancing its operational flexibility.

ONEOK Reports Strong Q2 2025 Earnings Boost

On August 4, 2025, ONEOK, Inc. reported higher earnings for the second quarter of 2025, with a net income of $841 million and an adjusted EBITDA of $1.98 billion. The results were driven by strategic acquisitions, particularly EnLink and Medallion, which contributed significantly to the company’s performance. The company also repaid nearly $600 million in senior notes and affirmed its full-year 2025 financial guidance ranges. These developments underscore ONEOK’s strong market positioning and its ability to deliver long-term value to stakeholders.

Oneok Declares Quarterly Dividend of $1.03 Per Share

On July 16, 2025, ONEOK, Inc. announced that its board of directors declared a quarterly dividend of $1.03 per share of common stock, maintaining the previous quarter’s rate and resulting in an annualized dividend of $4.12 per share. The dividend is set to be paid on August 14, 2025, to shareholders recorded by the close of business on August 1, 2025, reflecting the company’s stable financial strategy and commitment to shareholder returns.

ONEOK Announces Q2 2025 Earnings Release Date

ONEOK, Inc. announced on June 30, 2025, that it will release its second quarter 2025 earnings after the market closes on August 4, 2025. A conference call and webcast with the management team will follow on August 5, 2025, at 11 a.m. Eastern Time. This announcement is part of ONEOK’s ongoing efforts to provide transparency and engage with stakeholders, reflecting its commitment to maintaining strong communication with investors and the market.

ONEOK Completes Acquisition of Delaware G&P Stake

On June 3, 2025, ONEOK announced the acquisition of the remaining 49.9% interest in Delaware G&P LLC from NGP XI Midstream Holdings for $940 million, making ONEOK the sole owner of the Delaware Basin JV. This acquisition, completed on May 28, 2025, enhances ONEOK’s growth strategy in the Permian Basin, strengthening its position in the natural gas gathering and processing sector with facilities capable of processing over 700 million cubic feet per day.

ONEOK Announces Participation in Investor Conference

On May 27, 2025, ONEOK, Inc. announced its participation in an investor conference and a fireside chat session scheduled for May 28. The session will be webcast live on the company’s website, with a replay available, providing stakeholders with insights into ONEOK’s operations and strategic positioning in the energy market.