Oneok (OKE) AI Stock Analysis

• Market Cap: $52.16B
• Dividend Yield: 5.61%
• Average Volume (3M): 4.54M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.82
• Revenue Growth: 58.76%
• EPS Growth: 13.74%
• Country: US
• Employees: 5,177
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.55
• Shares Outstanding: 629,231,570
• 10 Day Avg. Volume: 3,955,676
• 30 Day Avg. Volume: 4,536,537
• PEG Ratio: 2.95
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 10.72
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: 11.71
• Enterprise Value/Ebitda: 10.85
• 1Y Price Target: $88.55
• Price Target Upside: 1.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 5.8
• Revenue Forecast (FY): $34.76B

• Rating: 75 Outperform
• Price Target: $93.00 ▲(6.49% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

Overall score is driven primarily by solid financial performance led by strong and improving cash flow, with some margin pressure and leverage risk. Technicals are supportive with price above key moving averages and healthy momentum. Valuation adds support via a mid-teens P/E and ~5% dividend yield. Earnings call signals steady execution and visible 2026 drivers, tempered by spread/volume headwinds and slower progress toward the leverage target.

Positive Factors

Fee-based Earnings Mix

A roughly 90% fee-based revenue mix materially reduces commodity exposure and supports cash stability. That durable, contract-driven cash flow profile improves predictability for capital allocation, supports dividends and buybacks, and underpins long-term credit resilience.

Strong Cash Generation

Operating cash flow and free cash flow strengthened sharply in 2025 (OCF ~$9.65B; FCF ~$4.32B; FCF growth ~48%), with operating cash covering net income ~1.52x. Robust cash generation supports debt paydown, ongoing capex, and shareholder returns while enabling strategic optionality.

Synergy Capture & Project Pipeline

Material synergy realization (~$475–$500M) plus visible projects coming online (Shadowfax, Delaware expansions, Medford fractionator) create durable EBITDA tailwinds and operating leverage. Consistent synergy capture improves margin upside and funds reinvestment without sole reliance on commodity cycles.

Negative Factors

Elevated Leverage

Leverage remains meaningful despite improvement (debt-to-equity ~1.46). A still-heavy capital structure limits financial flexibility, increases interest exposure and forces trade-offs between faster deleveraging and funding growth projects or shareholder returns over the medium term.

Margin Compression

Net margin deterioration reflects weaker upgrade margins, narrower differentials and mix shifts. Sustained margin compression would reduce cash conversion and return on capital, making long-term targets and debt-reduction timelines harder to achieve absent continued efficiency gains or spreads recovery.

Volume & Third‑Party Execution Risk

Throughput depends on producer activity and third-party plant timing; Bakken drilling softness and partner plant delays trimmed volumes. Such execution and producer-activity risk reduces utilization and makes fee-based cash flows less predictable, affecting medium-term growth visibility.

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 and tariffs associated with its midstream services. The company earns money by transporting natural gas and NGLs through its extensive pipeline network and charging shippers based on the volume of gas transported or the capacity used. Key revenue streams include gathering and processing fees from producers, transportation fees for moving gas through pipelines, and fractionation fees for separating NGLs into their component products. Additionally, Oneok benefits from long-term contracts with customers, providing stable cash flow. Strategic partnerships with producers and utilities, along with investments in expanding its infrastructure, further enhance its revenue-generating capabilities.

Oneok Financial Statement Overview

Summary

Strong cash generation and improving operating performance support the score (2025 operating cash flow and free cash flow rose sharply, with solid cash conversion). Offsetting factors are meaningful—but improving—leverage and 2025 margin compression versus 2023–2024.

Income Statement

Revenue rebounded strongly into 2025 (up 6.5% after a step-up in 2024), and operating profitability remains solid with 2025 EBIT margin ~21% and EBITDA margin ~26%. However, margins have compressed versus 2023–2024 levels (net margin down to ~10.1% in 2025 from ~14.0% in 2024), suggesting less favorable mix/pricing or higher costs. Overall: good profitability with some recent margin pressure.

Balance Sheet

Leverage is meaningful for the business: debt-to-equity improved to ~1.46 in 2025 from ~1.90 in 2024, but remains elevated. Equity has increased materially (supportive of balance-sheet resilience), and returns on equity are healthy (~15.1% in 2025), albeit below 2022–2024 levels. Overall: improving leverage trend and decent returns, but still a debt-heavy capital structure.

Cash Flow

Cash generation strengthened materially in 2025: operating cash flow rose to ~$9.65B and free cash flow to ~$4.32B, with free-cash-flow growth of ~47.9%. Operating cash flow covers net income well (coverage ~1.52 in 2025), signaling strong cash conversion, though free cash flow is less than half of net income in 2025 (free cash flow to net income ~0.45), implying higher reinvestment/working-capital demands versus some prior years. Overall: robust and improving cash flow profile.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	33.63B	21.64B	17.68B	22.87B	17.27B
Gross Profit	7.22B	5.05B	5.75B	3.12B	3.02B
EBITDA	7.79B	6.59B	5.11B	3.52B	3.30B
Net Income	3.40B	3.04B	2.66B	1.72B	1.50B
Balance Sheet
Total Assets	66.64B	64.07B	44.27B	24.38B	23.62B
Cash, Cash Equivalents and Short-Term Investments	78.00M	733.00M	338.00M	220.00M	146.39M
Total Debt	32.82B	32.29B	21.76B	13.70B	13.73B
Total Liabilities	44.07B	41.94B	27.78B	17.89B	17.61B
Stockholders Equity	22.48B	17.04B	16.48B	6.49B	6.02B
Cash Flow
Free Cash Flow	4.32B	2.87B	2.83B	1.70B	1.85B
Operating Cash Flow	9.65B	4.89B	4.42B	2.91B	2.55B
Investing Cash Flow	-6.39B	-6.61B	-6.40B	-1.14B	-665.29M
Financing Cash Flow	7.83B	2.12B	2.10B	-1.69B	-2.26B

Oneok Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 87.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OKE, the sentiment is Positive. The current price of 87.33 is above the 20-day moving average (MA) of 82.29, above the 50-day MA of 76.51, and above the 200-day MA of 74.25, indicating a bullish trend. The MACD of 2.97 indicates Positive momentum. The RSI at 55.27 is Neutral, neither overbought nor oversold. The STOCH value of 58.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OKE.

Oneok Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPLX	80 Outperform	$59.89B	12.20	34.70%	7.31%	5.19%	11.09%
OKE	75 Outperform	$52.16B	16.11	17.17%	5.61%	58.76%	13.74%
EPD	70 Outperform	$78.51B	13.69	―	6.72%	-6.46%	-0.87%
KMI	70 Outperform	$72.73B	23.91	9.85%	4.27%	8.54%	7.22%
WMB	70 Outperform	$89.76B	34.10	20.74%	3.35%	11.48%	-17.82%
TRGP	68 Neutral	$49.81B	27.31	65.06%	2.03%	7.79%	33.93%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Oneok Corporate Events

ONEOK Posts Strong 2025 Results and 2026 Outlook

On Feb. 23, 2026, ONEOK reported that full-year 2025 net income attributable to the company rose 12% to $3.39 billion and adjusted EBITDA climbed 18% to $8.02 billion, driven by higher NGL and natural gas processing volumes and contributions from recent acquisitions such as EnLink and Medallion. The company highlighted strong balance sheet actions, including extinguishing nearly $3.1 billion of long-term debt, repurchasing equity and notes, raising its dividend in January 2026, and achieving $475 million of acquisition-related synergies while reaching more than 80% of its 2030 Scope 1 and 2 emissions reduction target.

For 2026, ONEOK issued guidance with a net income midpoint of $3.45 billion, adjusted EBITDA midpoint of $8.1 billion and capital expenditures between $2.7 billion and $3.2 billion, underpinned by fee-based growth from NGL, refined products, crude, and gas gathering and pipeline projects. Management expects continued benefits from completed expansions, further commercial and cost synergies and high contracted and hedged positions, although growth is projected to be tempered by moderating producer activity in a lower commodity price environment.

The most recent analyst rating on (OKE) stock is a Hold with a $89.00 price target. To see the full list of analyst forecasts on Oneok stock, see the OKE Stock Forecast page.

ONEOK Expands Board With Two New Independent Directors

On January 21, 2026, ONEOK’s board of directors elected Mark A. McCollum and Precious Williams Owodunni as independent directors, effective January 23, 2026, expanding the board from 10 to 12 members. McCollum, a former president and CEO of Weatherford International and ex-CFO of Halliburton with extensive energy-sector and financial leadership experience, and Owodunni, CEO of advisory firm Mountaintop Consulting and a former Goldman Sachs investment banker and private equity investor, were both deemed independent under New York Stock Exchange rules and bring complementary strengths in energy, finance, strategy, and governance. McCollum was appointed to the Audit and Corporate Governance Committees, while Owodunni joined the Executive Compensation and Corporate Governance Committees; their additions, supported by standard director compensation and indemnification arrangements, are intended to bolster ONEOK’s governance, strategic capabilities and oversight to the benefit of shareholders and other stakeholders as the company advances its midstream infrastructure strategy.

The most recent analyst rating on (OKE) stock is a Buy with a $103.00 price target. To see the full list of analyst forecasts on Oneok stock, see the OKE Stock Forecast page.