Oneok (OKE) AI Stock Analysis

• Market Cap: $44.76B
• Dividend Yield: 5.64%
• Average Volume (3M): 4.24M
• Price to Earnings (P/E): 13.1
• 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): 1.49
• Shares Outstanding: 629,231,570
• 10 Day Avg. Volume: 4,082,236
• 30 Day Avg. Volume: 4,237,196
• PEG Ratio: -3.55
• Price to Book (P/B): 3.46
• Price to Sales (P/S): 2.72
• P/FCF Ratio: 20.54
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 11.73
• Enterprise Value/Ebitda: 10.07
• 1Y Price Target: $86.38
• Price Target Upside: 18.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 5.42
• Revenue Forecast (FY): $34.01B

• Rating: 82 Outperform
• Price Target: $87.00 ▲(19.10% Upside)

Oneok's strong financial performance and positive earnings call are the most significant factors driving the score. The company's effective cost management, revenue growth, and strategic integration of acquisitions position it well for future growth. Technical indicators show bullish momentum, although the stock faces resistance at the 200-day moving average. The valuation is attractive with a reasonable P/E ratio and high dividend yield.

Positive Factors

Revenue Growth

The robust revenue growth indicates strong demand in the oil & gas midstream sector, supporting long-term business expansion and market position.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for strategic investments and debt reduction, supporting sustainable growth.

Synergy Realization

Effective synergy realization from acquisitions boosts operational efficiency and profitability, strengthening competitive advantage and market position.

Negative Factors

Operational Efficiency Pressure

Decreasing margins suggest pressure on operational efficiency, which could impact profitability if not addressed, potentially affecting long-term competitiveness.

Debt Levels

While leverage has improved, significant debt levels remain a risk, potentially limiting financial flexibility and increasing vulnerability to market changes.

Operational Disruptions

Operational disruptions like the MB-4 incident can impact production and revenue, highlighting the need for robust risk management to ensure stability.

Oneok Business Overview & Revenue Model

Company Description

Oneok, Inc. (OKE) is a leading midstream service provider in the United States, primarily engaged in the transportation, storage, and processing of natural gas and natural gas liquids (NGLs). The company operates through two main segments: the Natural Gas segment, which focuses on gathering, processing, and transporting natural gas, and the NGL segment, which involves the fractionation and transportation of NGLs. Oneok plays a critical role in the energy supply chain, facilitating the movement of hydrocarbons from production areas to market destinations.

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

Oneok demonstrates strong financial performance with significant revenue and cash flow growth, supported by effective cost management and improved leverage. However, the company must remain vigilant about its debt levels and operational efficiency to sustain its growth trajectory.

Income Statement

Oneok's income statement shows strong revenue growth with a 12.92% increase in TTM, indicating robust demand in the oil & gas midstream sector. The gross profit margin is healthy at 22.41%, and the net profit margin is solid at 11.07%, reflecting efficient cost management. However, the EBIT and EBITDA margins have slightly decreased compared to the previous year, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 1.49, which is an improvement from previous years, indicating better leverage management. The return on equity is strong at 16.04%, showcasing effective use of equity capital. The equity ratio is stable, reflecting a balanced asset structure. However, the company still carries significant debt, which could pose risks if market conditions change.

Cash Flow

Oneok's cash flow statement highlights a substantial free cash flow growth of 76.97% in TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.80, suggesting that operating cash flows are well-aligned with reported earnings. The free cash flow to net income ratio is 0.54, demonstrating a solid conversion of earnings into cash. Despite these strengths, maintaining such growth rates could be challenging.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.56B	21.64B	17.68B	22.87B	17.27B	8.46B
Gross Profit	6.71B	5.05B	5.75B	3.12B	3.02B	2.03B
EBITDA	7.81B	6.59B	5.11B	3.52B	3.30B	2.00B
Net Income	3.34B	3.04B	2.66B	1.72B	1.50B	612.81M
Balance Sheet
Total Assets	66.62B	64.07B	44.27B	24.38B	23.62B	23.08B
Cash, Cash Equivalents and Short-Term Investments	1.20B	733.00M	338.00M	220.00M	146.39M	524.50M
Total Debt	33.73B	32.29B	21.76B	13.70B	13.73B	14.34B
Total Liabilities	44.46B	41.94B	27.78B	17.89B	17.61B	17.04B
Stockholders Equity	22.08B	17.04B	16.48B	6.49B	6.02B	6.04B
Cash Flow
Free Cash Flow	2.92B	2.87B	2.83B	1.70B	1.85B	-296.31M
Operating Cash Flow	5.66B	4.89B	4.42B	2.91B	2.55B	1.90B
Investing Cash Flow	-7.42B	-6.61B	-6.40B	-1.14B	-665.29M	-2.27B
Financing Cash Flow	-3.51B	2.12B	2.10B	-1.69B	-2.26B	875.00M

Oneok Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 73.05 is above the 20-day moving average (MA) of 72.86, above the 50-day MA of 69.90, and below the 200-day MA of 77.11, indicating a neutral trend. The MACD of 0.91 indicates Positive momentum. The RSI at 54.06 is Neutral, neither overbought nor oversold. The STOCH value of 17.29 is Positive, 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
OKE	82 Outperform	$44.76B	13.08	17.14%	5.64%	58.76%	13.74%
MPLX	81 Outperform	$54.91B	11.44	34.35%	7.24%	5.19%	11.09%
EPD	76 Outperform	$68.75B	12.03	19.98%	6.75%	-6.46%	-0.87%
WMB	76 Outperform	$71.33B	30.22	19.00%	3.40%	11.48%	-17.82%
TRGP	74 Outperform	$37.87B	23.72	61.18%	2.06%	7.79%	33.93%
KMI	68 Neutral	$58.58B	21.59	8.87%	4.37%	8.54%	7.22%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Oneok Corporate Events

ONEOK Reports Strong Q3 2025 Earnings Growth

On October 28, 2025, ONEOK, Inc. reported higher earnings for the third quarter of 2025 compared to the same period in 2024, with net income reaching $940 million and adjusted EBITDA at $2.12 billion. The company highlighted a 17% increase in Rocky Mountain region NGL raw feed throughput volumes and a 6% rise in the Mid-Continent region. The results were driven by the successful integration of acquisitions and increased production across its operational basins, positioning ONEOK for long-term value creation for stakeholders.