Oneok Inc (OKE)
NYSE:OKE
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Oneok
(NYSE:OKE)
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Rating:75Outperform
Price Target:
$102.00
â–²(12.55% Upside)
Action:ReiteratedDate: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
Cash Generation
Substantially stronger operating and free cash flow provides durable internal funding for capital projects, dividends, and opportunistic debt reduction. Reliable cash conversion reduces reliance on external financing and supports multi-year capital allocation flexibility even through commodity cycles.
Negative Factors
Elevated Leverage
Despite meaningful debt paydown, the balance sheet remains debt-heavy which limits strategic flexibility. Elevated leverage raises interest-cost sensitivity and constrains pace of buybacks or M&A unless EBITDA growth accelerates, extending the timeline to a conservative long-term leverage target.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Substantially stronger operating and free cash flow provides durable internal funding for capital projects, dividends, and opportunistic debt reduction. Reliable cash conversion reduces reliance on external financing and supports multi-year capital allocation flexibility even through commodity cycles.
Read all positive factors
Oneok (OKE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.08B
Dividend Yield5.61%
Average Volume (3M)5.64M
Price to Earnings (P/E)13.6
Beta (1Y)0.67
Revenue Growth58.76%
EPS Growth13.74%
CountryUS
Employees6,326
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)1.55
Shares Outstanding629,783,600
10 Day Avg. Volume6,809,786
30 Day Avg. Volume5,644,428
Financial Highlights & Ratios
PEG Ratio2.95
Price to Book (P/B)2.06
Price to Sales (P/S)1.38
P/FCF Ratio18.92
Enterprise Value/Market Cap1.53
Enterprise Value/Revenue2.60
Enterprise Value/Gross Profit12.11
Enterprise Value/Ebitda11.22
Forecast
1Y Price Target
$92.54Price Target Upside2.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)5.65
Revenue Forecast (FY)$34.36B
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 Pipeline...
How the Company Makes Money
ONEOK primarily makes money by charging fees for midstream services and by earning margins on certain commodity-related activities tied to its natural gas and NGL value chain. Key revenue streams include: (1) Fee-based transportation and storage: ...
Oneok Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call communicates strong operational execution and financial progress — double-digit earnings growth, significant synergy capture (~$500M realized), major projects on track, meaningful debt reduction and robust shareholder returns — while being candid about near-term headwinds from lower commodity prices, tightened spreads, weather impacts and some delayed third-party volumes. Management’s guidance is conservative but supported by identifiable growth projects and incremental synergies, and the company emphasizes durable, fee-based earnings and long-term optionality.Positive Updates
Strong Full-Year Financial Performance
Net income attributable to ONEOK, Inc. increased 12% year-over-year to $3.39B in 2025 (earnings $5.42/share). Adjusted EBITDA rose 18% to $8.02B, marking twelve consecutive years of adjusted EBITDA growth and a 17% average annual earnings growth rate over the period.
Negative Updates
Lower Bakken Volume Growth and Drilling Pace
Gathered volumes in 2025 were ~100 MMcf/d below original expectations due to lower Bakken drilling activity as crude prices fell from the $70s to the low $60s, tempering near-term volume growth.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Financial Performance
Net income attributable to ONEOK, Inc. increased 12% year-over-year to $3.39B in 2025 (earnings $5.42/share). Adjusted EBITDA rose 18% to $8.02B, marking twelve consecutive years of adjusted EBITDA growth and a 17% average annual earnings growth rate over the period.
Read all positive updates
Company Guidance
ONEOK’s 2026 guidance targets an adjusted EBITDA midpoint of $8.1 billion and net income of roughly $3.45 billion (about $5.45 per diluted share), built on an assumed WTI range of $55–$60/bbl, daily EBITDA of roughly $22 million, and visibility to $150 million of incremental acquisition synergies; the company also models $100 million of EBITDA lift from increased Permian volumes (including three Permian plant connections and the 150 MMcf/d Shadowfax plant relocation), $150 million from asset optimization (batching/blending and Easton/Mont Belvieu connectivity), and offsets including a $150 million reduction from narrower differentials, with first-quarter seasonality/weather and a 90‑day quarter expected to be the weakest quarter, no meaningful cash taxes expected until 2029, continued CapEx step-down as projects (e.g., 110 MMcf/d Delaware expansions, Denver pipeline mid‑3Q ’26, Medford Phase 1 at 100,000 bpd in 4Q ’26) come into service, and a maintained objective to reach long‑term leverage of 3.5x or lower.Oneok Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
63
Positive
Cash Flow
82
Very Positive
| 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 | 2.45B | 2.87B | 2.83B | 1.70B | 1.85B |
| Operating Cash Flow | 5.60B | 4.89B | 4.42B | 2.91B | 2.55B |
| Investing Cash Flow | -3.75B | -6.61B | -6.40B | -1.14B | -665.29M |
| Financing Cash Flow | -2.50B | 2.12B | 2.10B | -1.69B | -2.26B |
Oneok Technical Analysis
Positive
90.63
Price Trends
85.21
Positive
78.53
Positive
75.44
Positive
Market Momentum
1.53
Positive
58.16
Neutral
33.30
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 90.63 is above the 20-day moving average (MA) of 88.75, above the 50-day MA of 85.21, and above the 200-day MA of 75.44, indicating a bullish trend. The MACD of 1.53 indicates Positive momentum. The RSI at 58.16 is Neutral, neither overbought nor oversold. The STOCH value of 33.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OKE.
Oneok Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $56.08B | 11.07 | 34.93% | 7.31% | 5.19% | 11.09% | |
75 Outperform | $57.08B | 13.64 | 15.47% | 5.61% | 58.76% | 13.74% | |
73 Outperform | $83.03B | 12.07 | 19.84% | 6.72% | -6.46% | -0.87% | |
72 Outperform | $53.95B | 21.51 | 68.22% | 2.03% | 7.79% | 33.93% | |
70 Outperform | $74.09B | 20.01 | 9.92% | 4.27% | 8.54% | 7.22% | |
67 Neutral | $90.54B | 28.03 | 20.84% | 3.35% | 11.48% | -17.82% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
OKE
Oneok
90.63
10.25
12.75%
EPD
Enterprise Products Partners
38.41
10.69
38.57%
KMI
Kinder Morgan
33.30
8.13
32.33%
TRGP
Targa Resources
250.98
81.32
47.93%
WMB
Williams Co
74.04
19.41
35.53%
MPLX
MPLX
55.24
10.62
23.81%
Oneok Corporate Events
Executive/Board ChangesShareholder Meetings
ONEOK Announces Planned Retirement of Long-Serving Board Directors
Neutral
Mar 25, 2026
ONEOK announced on March 25, 2026, that long-serving directors Gerald B. Smith and Pattye L. Moore will retire from its board at the end of their current terms on May 20, 2026, coinciding with the company’s 2026 annual meeting of shareholder...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
ONEOK Posts Strong 2025 Results and 2026 Outlook
Positive
Feb 23, 2026
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 ...
Business Operations and StrategyExecutive/Board Changes
ONEOK Expands Board With Two New Independent Directors
Positive
Jan 26, 2026
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 ...
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.