Oneok (OKE) AI Stock Analysis

• Market Cap: $51.01B
• Dividend Yield: 4.95%
• Average Volume (3M): 3.55M
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.86
• Revenue Growth: 40.55%
• EPS Growth: 19.24%
• Country: US
• Employees: 5,177
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.04
• Shares Outstanding: 624,632,500
• 10 Day Avg. Volume: 3,148,053
• 30 Day Avg. Volume: 3,552,394
• PEG Ratio: -17.04
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.63
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 11.60
• Enterprise Value/Ebitda: 3.42
• 1Y Price Target: $99.27
• Price Target Upside: 21.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 79 Outperform
• Price Target: $92.00 ▲(12.65%Upside)

ONEOK's strong financial performance and positive earnings call contribute significantly to its stock score. Despite technical indicators suggesting a current downward trend, the company's fair valuation and strategic growth initiatives present a compelling case for long-term investment.

Positive Factors

Acquisitions and Diversification

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

Financial Performance

OKE's EBITDA benefits from acquisition synergies and new projects, forecasting increases in future quarters.

Market Position

OKE currently trades at a >0.5x EV/EBITDA discount to c-corp peers, presenting a compelling upside.

Negative Factors

Growth Opportunities

There is limited industry need for NGL infrastructure growth beyond what has been announced, limiting growth opportunities.

Market Perception

Investors may wait to ascribe full credit given prevailing competition and the perception incumbents are willing to sacrifice margin for market share.

Stock Performance

Despite these positive developments, OKE has underperformed YTD, lagging c-corp peers despite top quartile forecast growth and capital return program.

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 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 Financial Statement Overview

Summary

ONEOK exhibits robust financial health with strong revenue growth, efficient cost management, and solid cash flow generation. While the company is effectively managing its debt, high leverage could pose risks if market conditions shift.

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
EBITDA	6.83B	6.59B	5.11B	3.52B	3.30B	2.55B
Net Income	3.03B	3.04B	2.66B	1.72B	1.50B	612.81M
Balance Sheet
Total Assets	64.26B	64.07B	44.27B	24.38B	23.62B	23.08B
Cash, Cash Equivalents and Short-Term Investments	141.00M	733.00M	338.00M	220.23M	146.39M	524.50M
Total Debt	32.04B	32.08B	21.76B	13.70B	13.73B	14.34B
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: Neutral
• Last Price: 81.67
• 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 Neutral. The current price of 81.67 is above the 20-day moving average (MA) of 81.14, below the 50-day MA of 81.96, and below the 200-day MA of 92.49, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 51.05 is Neutral, neither overbought nor oversold. The STOCH value of 39.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OKE.

Oneok Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPLX	81 Outperform	$51.99B	11.76	32.54%	7.30%	5.53%	11.29%
OKE	79 Outperform	$51.01B	15.94	16.04%	4.95%	40.55%	19.24%
ET	76 Outperform	$59.85B	13.13	13.73%	9.25%	1.04%	22.31%
EPD	75 Outperform	$67.95B	11.77	20.49%	6.73%	9.10%	4.37%
WMB	69 Neutral	$70.04B	30.77	18.32%	3.38%	8.63%	-20.98%
Sector *	67 Neutral	$15.23B	9.43	6.27%	5.39%	4.07%	-71.82%
KMI	66 Neutral	$59.93B	22.13	8.86%	4.31%	3.95%	11.32%

Oneok Corporate Events

Oneok Declares Quarterly Dividend of $1.03 Per Share

On July 16, 2025, ONEOK, Inc. announced that its board of directors declared a quarterly dividend of $1.03 per share of common stock, maintaining the previous quarter’s rate and resulting in an annualized dividend of $4.12 per share. The dividend is set to be paid on August 14, 2025, to shareholders recorded by the close of business on August 1, 2025, reflecting the company’s stable financial strategy and commitment to shareholder returns.

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.

ONEOK Announces Q2 2025 Earnings Release Date

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.

ONEOK Completes Acquisition of Delaware G&P Stake

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.

ONEOK Announces Participation in Investor Conference

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.

Oneok Approves 2025 Equity Incentive and Stock Award Plans

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.

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.