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Oneok Inc (OKE)
NYSE:OKE

Oneok (OKE) AI Stock Analysis

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OK

Oneok

(NYSE:OKE)

Rating:81Outperform
Price Target:
$92.00
â–²(12.00%Upside)
ONEOK's strong financial performance and positive earnings call sentiment are key drivers of its solid stock score. While technical indicators suggest bearish momentum, the company's strategic acquisitions and attractive dividend yield support its overall investment appeal.
Positive Factors
Acquisitions and Integration
Recent acquisitions have transformed OKE into a more integrated and diversified company better positioned to capture market share.
Growth and Financial Performance
OKE’s near-term growth profile is one of the strongest among large-cap peers, on pace to grow nearly double digits.
Negative Factors
Market Competition
Investors may wait to ascribe full credit given prevailing competition and the perception incumbents are willing to sacrifice margin for market share.
Stock Performance
The stock declined on the print, attributed to the midpoint of guidance being lower than the Street.

Oneok (OKE) vs. SPDR S&P 500 ETF (SPY)

Oneok Business Overview & Revenue Model

Company DescriptionONEOK, 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 MoneyOneok generates revenue through its three main business segments: Natural Gas Gathering and Processing, Natural Gas Liquids (NGL) segment, and Natural Gas Pipelines. The Natural Gas Gathering and Processing segment earns money by collecting and processing raw natural gas from upstream producers, extracting valuable NGLs, and preparing natural gas for delivery to downstream markets. The NGL segment provides services such as fractionation, transportation, and marketing of NGLs, which are critical components for petrochemical and industrial applications. The Natural Gas Pipelines segment involves transporting natural gas through a network of regulated pipelines, earning revenue through transportation fees and long-term contracts. Key factors contributing to Oneok's earnings include its strategic infrastructure assets, contractual arrangements that provide stable cash flows, and partnerships with major energy producers and consumers.

Oneok Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: -5.34%|
Next Earnings Date:Aug 04, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance in the first quarter of 2025 with significant contributions from recent acquisitions, growth in volumes, and a robust financial position. Although there were challenges related to weather conditions and the absence of divested asset earnings, the company remains optimistic about future growth driven by synergies, strategic projects, and a strong financial outlook.
Q1-2025 Updates
Positive Updates
Record First Quarter Net Income
First quarter 2025 net income attributable to ONEOK totaled $636 million or $1.04 per share. Adjusted EBITDA for the first quarter was $1.78 billion, driven by full-quarter contributions from acquired assets and higher year-over-year NGL and natural gas processing volumes.
Successful Acquisition Integration
The acquired EnLink and Medallion assets contributed nearly $450 million during the first quarter. ONEOK expects $250 million in total incremental synergies from these acquisitions in 2025.
Significant Growth in NGL and Natural Gas Volumes
First-quarter NGL volumes increased 4% year-over-year, with notable increases in the Rocky Mountain region and Gulf Coast Permian. Natural gas processing volumes in the Rocky Mountain region are expected to ramp up significantly as the year progresses.
Strong Financial Position
ONEOK ended the quarter with no borrowings outstanding under its $3.5 billion facility and more than $140 million in cash. The company continues to focus on maintaining a strong balance sheet and investment-grade credit ratings.
LPG Export Capacity Preparedness
ONEOK has enough propane on its system to fill its Texas City LPG export capacity, which is expected to be completed in early 2028, indicating strong future export potential.
Negative Updates
Impact of Weather Conditions
Adverse winter weather conditions affected raw feed throughput in several regions, including the Gulf Coast Permian, impacting NGL and natural gas volumes in the first quarter.
Absence of Divested Asset Earnings
The absence of earnings from Interstate pipeline assets divested on December 31, 2024, partially offset the positive results from acquired assets and increased volumes.
Company Guidance
During the first quarter of 2025 earnings call, ONEOK affirmed its 2025 financial guidance and 2026 outlook, highlighting several metrics and projects that drive its growth strategy. The company reported a net income of $636 million, or $1.04 per share, with adjusted EBITDA of $1.78 billion, or $1.81 billion excluding transaction costs. EnLink and Medallion assets contributed nearly $450 million to first-quarter results, with total incremental synergies expected to reach $250 million in 2025. ONEOK's leverage is expected to trend towards a target of 3.5x by 2026. The company's capital projects include the West Texas NGL pipeline and Elk Creek pipeline expansions, along with the integration of Easton Energy NGL assets with Gulf Coast infrastructure. The firm also discussed the strategic benefits of acquisition-related synergies and organic growth projects, emphasizing its commitment to maintaining a strong balance sheet, investment-grade credit ratings, and financial flexibility.

Oneok Financial Statement Overview

Summary
ONEOK showcases solid financial health with strong revenue growth, efficient operations, and robust cash flow management. Income statement indicators like revenue growth of 15.04% and a gross profit margin of 30.13% are strong. The balance sheet shows a manageable debt-to-equity ratio of 1.50, but high total debt levels could be a concern. Overall, financial statements reflect a well-managed company poised for growth, though vigilance on leverage is advised.
Income Statement
85
Very Positive
The company's income statement shows strong financial performance with a notable revenue growth rate of 15.04% for TTM compared to the previous year. The gross profit margin stands at 30.13%, indicating efficient cost management. The net profit margin is healthy at 12.15%, reflecting profitability. EBITDA and EBIT margins are robust at 27.10% and 20.61%, respectively, underlining operational efficiency. However, the net income is slightly lower compared to the previous annual report, showing a slight dip in profitability.
Balance Sheet
78
Positive
The balance sheet reflects a solid financial structure with a manageable debt-to-equity ratio of 1.50, showing moderate leverage. The equity ratio is 33.25%, indicating a strong equity base relative to total assets. The return on equity is impressive at 14.19%, demonstrating effective use of shareholders' investment to generate income. Despite these strengths, the high level of total debt may pose a risk if interest rates rise.
Cash Flow
82
Very Positive
The cash flow statement highlights strong cash generation with operating cash flow of $5.23 billion, exceeding net income and indicating good cash conversion. Free cash flow growth rate is 6.87%, showing positive cash flow management. The operating cash flow to net income ratio is 1.72, and the free cash flow to net income ratio is 1.01, both suggesting healthy cash flow relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue24.96B21.70B17.68B22.39B16.54B8.54B
Gross Profit7.14B7.25B4.98B3.85B3.66B2.85B
EBITDA6.83B6.59B5.11B3.52B3.30B2.55B
Net Income3.03B3.04B2.66B1.72B1.50B612.81M
Balance Sheet
Total Assets64.26B64.07B44.27B24.38B23.62B23.08B
Cash, Cash Equivalents and Short-Term Investments141.00M733.00M338.00M220.23M146.39M524.50M
Total Debt32.04B32.08B21.76B13.70B13.73B14.34B
Total Liabilities42.14B41.94B27.78B17.89B17.61B17.04B
Stockholders Equity21.36B17.04B16.48B6.49B6.02B6.04B
Cash Flow
Free Cash Flow3.06B2.87B2.83B1.70B1.85B-296.31M
Operating Cash Flow5.23B4.89B4.42B2.91B2.55B1.90B
Investing Cash Flow-6.73B-6.61B-6.40B-1.14B-665.29M-2.27B
Financing Cash Flow1.61B2.12B2.10B-1.69B-2.26B875.00M

Oneok Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price82.14
Price Trends
50DMA
82.41
Negative
100DMA
87.61
Negative
200DMA
93.11
Negative
Market Momentum
MACD
-0.39
Negative
RSI
51.13
Neutral
STOCH
57.39
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 82.14 is above the 20-day moving average (MA) of 81.53, below the 50-day MA of 82.41, and below the 200-day MA of 93.11, indicating a neutral trend. The MACD of -0.39 indicates Negative momentum. The RSI at 51.13 is Neutral, neither overbought nor oversold. The STOCH value of 57.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OKE.

Oneok Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
OKOKE
81
Outperform
$51.31B16.0416.04%5.01%40.55%19.24%
81
Outperform
$51.85B11.7332.54%7.49%5.53%11.29%
ETET
79
Outperform
$61.12B13.4113.73%7.32%1.04%22.31%
EPEPD
75
Outperform
$68.19B11.8120.49%6.81%9.10%4.37%
KMKMI
73
Outperform
$62.95B24.498.43%4.11%2.02%5.40%
WMWMB
71
Outperform
$72.21B31.7318.32%3.38%8.63%-20.98%
68
Neutral
$15.14B9.916.38%5.21%4.16%-67.19%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OKE
Oneok
82.14
3.54
4.50%
ET
Energy Transfer
17.90
2.87
19.10%
EPD
Enterprise Products Partners
31.44
4.38
16.19%
KMI
Kinder Morgan
28.50
9.51
50.08%
WMB
Williams Co
59.14
18.18
44.38%
MPLX
MPLX
51.05
11.78
30.00%

Oneok Corporate Events

Financial Disclosures
ONEOK Announces Q2 2025 Earnings Release Date
Neutral
Jul 1, 2025

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.

The most recent analyst rating on (OKE) stock is a Hold with a $97.00 price target. To see the full list of analyst forecasts on Oneok stock, see the OKE Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
ONEOK Completes Acquisition of Delaware G&P Stake
Positive
Jun 4, 2025

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.

The most recent analyst rating on (OKE) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Oneok stock, see the OKE Stock Forecast page.

Business Operations and Strategy
ONEOK Announces Participation in Investor Conference
Neutral
May 29, 2025

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.

The most recent analyst rating on (OKE) stock is a Hold with a $97.00 price target. To see the full list of analyst forecasts on Oneok stock, see the OKE Stock Forecast page.

Shareholder Meetings
Oneok Approves 2025 Equity Incentive and Stock Award Plans
Neutral
May 22, 2025

On May 21, 2025, ONEOK, Inc. held its Annual Meeting of Shareholders where the 2025 Equity Incentive Plan (EIP) and the 2025 Employee Stock Award Program (ESAP) were approved. The 2025 EIP, replacing the 2018 EIP, allows for the issuance of up to 16,870,000 shares of common stock plus additional shares from the previous plan, and provides various awards to non-employee directors, officers, and employees. The 2025 ESAP, succeeding the previous stock award program, offers eligible employees one share of common stock for no monetary consideration when certain share price benchmarks are met. Both plans are set to terminate ten years from the effective date unless ended earlier. Additionally, the shareholders elected directors and ratified the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025.

The most recent analyst rating on (OKE) stock is a Hold with a $97.00 price target. To see the full list of analyst forecasts on Oneok stock, see the OKE Stock Forecast page.

M&A TransactionsStock BuybackBusiness Operations and StrategyFinancial Disclosures
Oneok Reports Strong Q1 2025 Earnings and Growth
Positive
Apr 29, 2025

On April 29, 2025, ONEOK, Inc. announced its first quarter 2025 earnings, reporting a net income of $691 million and an adjusted EBITDA of $1.78 billion. The results were bolstered by increased volumes in the Rocky Mountain region and contributions from recent acquisitions, including EnLink Midstream. The company also affirmed its full-year 2025 financial guidance, highlighting continued growth through strategic acquisitions, organic projects, and increased demand for its services. Key financial activities included the completion of the EnLink acquisition, joint ventures for a new LPG export terminal, and share repurchases under its ongoing program.

Dividends
Oneok Declares Consistent Quarterly Dividend Amid Stability
Positive
Apr 25, 2025

On April 24, 2025, ONEOK, Inc. announced that its board of directors declared a quarterly dividend of $1.03 per share of common stock, consistent with the previous quarter, resulting in an annualized dividend of $4.12 per share. The dividend is scheduled for payment on May 15, 2025, to shareholders recorded by May 5, 2025. This decision reflects the company’s stable financial position and commitment to providing consistent returns to its shareholders, reinforcing its standing as a reliable entity within the energy infrastructure sector.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 24, 2025