Oneok (OKE) AI Stock Analysis

• Market Cap: $52.93B
• Dividend Yield: 4.72%
• Average Volume (3M): 3.78M
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.89
• Revenue Growth: 40.55%
• EPS Growth: 19.24%
• Country: US
• Employees: 5,177
• Sector: Energy
• Sector Strength: 42
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.04
• Shares Outstanding: 624,632,500
• 10 Day Avg. Volume: 3,383,891
• 30 Day Avg. Volume: 3,780,152
• PEG Ratio: -17.19
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.78
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 11.67
• Enterprise Value/Ebitda: 3.44
• 1Y Price Target: $107.27
• Price Target Upside: 28.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 74 Outperform
• Price Target: ―

ONEOK's overall stock score reflects its strong earnings growth and robust cash generation, offset by technical indicators suggesting bearish trends and concerns over high debt levels. While the valuation is fair with a compelling dividend yield, strategic projects and acquisition synergies bolster its long-term growth prospects.

Positive Factors

Company Transformation

Recent acquisitions have transformed OKE into a more integrated and diversified company better positioned to capture market share.

Earnings Guidance

Management highlighted strong FY26 growth that could approach ~10% as OKE gets a full-year benefit from the ramp of recently completed projects.

Strategic Projects

OKE's export JV with MPLX creates strategic value and adds to a proposition of competitive growth coupled with rapidly increasing capital return.

Negative Factors

Financial Guidance

OKE's initial FY25 adj EBITDA guidance was lighter than expected, but soft FY26 guidance for y/y adj EBITDA growth 'approaching 10%' is stronger than forecasted.

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 Business Overview & Revenue Model

Company Description

ONEOK, Inc. is a leading midstream service provider in the United States, specializing in the gathering, processing, storage, and transportation of natural gas and natural gas liquids (NGLs). Headquartered in Tulsa, Oklahoma, the company operates an extensive network of infrastructure assets that connect key supply basins with market centers across the country. Its operations are divided into segments including natural gas gathering and processing, natural gas liquids, and natural gas pipelines, all of which play a critical role in the energy value chain.

How the Company Makes Money

ONEOK makes money primarily through its fee-based services in the midstream energy sector. The company generates revenue by transporting natural gas and NGLs through its pipeline networks, charging customers for the use of its infrastructure. Its revenue streams are diversified across three main segments: Natural Gas Gathering and Processing, which involves collecting and refining natural gas from production sites; Natural Gas Liquids, where it processes and transports NGL products such as ethane, propane, and butane; and Natural Gas Pipelines, focusing on the interstate and intrastate transportation of natural gas. ONEOK benefits from long-term contracts with producers and marketers, providing stable cash flows and reducing exposure to commodity price volatility. Additionally, strategic partnerships and expansions of its infrastructure network enhance its capacity and reach, further contributing to its earnings.

Oneok Financial Statement Overview

Summary

ONEOK demonstrates strong financial health with notable revenue growth, efficient operations, and robust cash flow management. The company's profitability is slightly impacted by high debt levels, which could pose a risk if market conditions change.

Income Statement

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

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

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
24.96B	21.70B	17.68B	22.39B	16.54B	8.54B
	Gross Profit
7.14B	7.25B	4.98B	3.85B	3.66B	2.85B
	EBIT
5.14B	4.99B	4.07B	2.81B	2.60B	2.14B
	EBITDA
6.83B	6.59B	5.11B	3.52B	3.30B	2.55B
	Net Income Common Stockholders
3.03B	3.04B	2.66B	1.72B	1.50B	612.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
141.00M	733.00M	338.00M	220.23M	146.39M	524.50M
	Total Assets
64.26B	64.07B	44.27B	24.38B	23.62B	23.08B
	Total Debt
32.04B	32.08B	21.76B	13.70B	13.73B	14.34B
	Net Debt
31.90B	31.34B	21.43B	13.48B	13.59B	13.81B
	Total Liabilities
42.14B	41.94B	27.78B	17.89B	17.61B	17.04B
	Stockholders Equity
21.36B	17.04B	16.48B	6.49B	6.02B	6.04B
Cash Flow		Free Cash Flow
3.06B	2.87B	2.83B	1.70B	1.85B	-296.31M
	Operating Cash Flow
5.23B	4.89B	4.42B	2.91B	2.55B	1.90B
	Investing Cash Flow
-6.73B	-6.61B	-6.40B	-1.14B	-665.29M	-2.27B
	Financing Cash Flow
1.61B	2.12B	2.10B	-1.69B	-2.26B	875.00M

Oneok Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 83.71
• 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 Negative. The current price of 83.71 is above the 20-day moving average (MA) of 83.56, below the 50-day MA of 87.79, and below the 200-day MA of 93.61, indicating a bearish trend. The MACD of -0.64 indicates Negative momentum. The RSI at 42.52 is Neutral, neither overbought nor oversold. The STOCH value of 35.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OKE.

Oneok Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPLX	81 Outperform	$52.92B	11.97	32.54%	7.03%	5.53%	11.29%
ET	75 Outperform	$61.77B	13.56	13.73%	7.14%	1.04%	22.31%
OKE	74 Outperform	$52.93B	16.54	16.04%	4.72%	40.55%	19.24%
EPD	73 Outperform	$70.60B	12.23	20.49%	6.59%	9.10%	4.37%
WMB	73 Outperform	$71.76B	31.53	18.32%	3.28%	8.63%	-20.98%
KMI	73 Outperform	$62.17B	24.19	8.43%	4.13%	2.02%	5.40%
Sector *	57 Neutral	$7.13B	3.45	-3.67%	5.68%	0.46%	-50.35%

Oneok Corporate Events

Oneok Reports Strong Q1 2025 Earnings and Growth

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.

Oneok Declares Consistent Quarterly Dividend Amid Stability

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.

ONEOK to Announce Q1 2025 Earnings in April

On April 1, 2025, ONEOK announced that it will release its first quarter 2025 earnings after the market closes on April 29, 2025. A conference call and live webcast are scheduled for April 30, 2025, to discuss the earnings, highlighting the company’s commitment to transparency and stakeholder engagement.

ONEOK Announces 2025 Financial Guidance and Growth Outlook

On February 24, 2025, ONEOK announced its financial guidance for 2025 and a growth outlook for 2026. The company anticipates an 11% increase in net income and an 8% rise in earnings per share for 2025, driven by volume growth, completed projects, and expanded operations, particularly in the Permian Basin and Gulf Coast. For 2026, ONEOK expects over 15% growth in earnings per share and nearly 10% growth in adjusted EBITDA, supported by increased production and the realization of acquisition-related synergies. The guidance reflects ONEOK’s strategic focus on disciplined growth and value delivery across its operations, with significant capital expenditures planned for key projects and expansions.

ONEOK Reports Strong Financial Growth in 2024

ONEOK reported significant financial growth for the fourth quarter and full-year 2024, with net income reaching $3.1 billion and adjusted EBITDA at $6.78 billion. This growth was driven by strategic acquisitions, including EnLink and Medallion, increased volumes in the Rocky Mountain region, and a successful divestiture of an interstate pipeline. The company also completed several capital projects, such as the MB-6 fractionator and the Elk Creek pipeline expansion, further positioning itself for long-term growth. Additionally, ONEOK increased its quarterly dividend and repurchased shares, reflecting its commitment to returning value to shareholders.