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Oneok Inc (OKE)
:OKE
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Oneok (OKE) AI Stock Analysis

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OKE

Oneok

(NYSE:OKE)

Rating:73Outperform
Price Target:
$83.00
â–²(11.23% Upside)
Oneok's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting robust growth and strategic expansions. However, technical analysis indicates bearish momentum, which tempers the overall score. The stock's attractive valuation further supports its investment appeal.
Positive Factors
Acquisitions
The company acquired an additional 30% interest in the BridgeTex pipeline, bringing total ownership to 60%.
Earnings Potential
OKE's EBITDA benefits from acquisition synergies and new projects, forecasting increases in future quarters.
Expansion
OKE is expanding its Del processing capacity from 0.3bcf/d a year ago to 1.1bcf/d by 2027.
Negative Factors
Growth Concerns
Feedback from investors suggests concern around future growth rate as NGL infrastructure appears well piped.
Guidance
OKE lowered 2026 guidance by $200mm, and it may decrease further if crude prices soften.
Market Performance
Despite these positive developments, OKE has underperformed YTD, lagging c-corp peers despite top quartile forecast growth and capital return program.

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 primarily through fee-based contracts for its midstream services, including gathering, processing, and transportation of natural gas and NGLs. The company operates a network of pipelines and processing facilities that allow it to collect fees for transporting and storing hydrocarbons. Key revenue streams include gathering and processing fees from producers, transportation fees from shippers, and NGL sales. Additionally, Oneok benefits from long-term contracts with producers, which provide stable cash flows. Significant partnerships with exploration and production companies further enhance its revenue potential by ensuring consistent demand for its services.

Oneok Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance for Q2 2025 with significant EBITDA and net income growth. The company affirmed its 2025 guidance and achieved substantial debt reduction. Strategic expansions, particularly in the Permian Basin, and record NGL throughput volumes showcase growth potential. However, the 2026 outlook was adjusted downward slightly due to current commodity prices, and there was a noted impact from maintenance on fractionation utilization. Overall, the highlights significantly outweigh the lowlights, indicating a positive sentiment.
Q2-2025 Updates
Positive Updates
Strong Q2 2025 Financial Performance
Second quarter adjusted EBITDA increased 12% compared to the first quarter, with net income attributable to ONEOK totaling $841 million, a more than 30% increase from the first quarter.
Affirmation of 2025 Financial Guidance
ONEOK affirmed its 2025 financial guidance ranges, including net income of $3.1 billion to $3.6 billion and adjusted EBITDA range of $8 billion to $8.45 billion.
Significant Debt Reduction
During the quarter, ONEOK reduced its senior notes by nearly $600 million, contributing to a year-to-date extinguishing of nearly $850 million in senior notes.
Permian Basin Expansion
ONEOK announced a final investment decision on a new natural gas processing plant in the Permian's Delaware Basin, enhancing its presence in this strategic area.
Record NGL Throughput and Growth
Total NGL raw feed throughput volumes increased 18% compared with the first quarter, with record volumes in the Rocky Mountain region.
Negative Updates
2026 Outlook Adjusted Downward
The 2026 adjusted EBITDA outlook was adjusted downward by approximately 2% or $200 million due to current commodity prices and resulting spread differentials.
Fractionation Utilization Impact
Lower fractionation utilization due to maintenance resulted in a $13 million impact in the second quarter from unfractionated NGLs and inventory.
Company Guidance
During the ONEOK Second Quarter 2025 Earnings Call, the company provided robust guidance for the fiscal year. The second quarter saw a 12% increase in adjusted EBITDA compared to the first quarter, reaching $1.98 billion, or $2 billion excluding transaction costs. Net income attributable to ONEOK was $841 million, a more than 30% increase over the first quarter, with earnings per share at $1.34. The company reaffirmed its 2025 financial guidance, anticipating net income between $3.1 billion and $3.6 billion, and an adjusted EBITDA range of $8 billion to $8.45 billion. ONEOK also emphasized its proactive debt management strategy, having reduced senior notes by nearly $600 million during the quarter, and expects to achieve a long-term leverage target of 3.5x by 2026. Despite a cautious macroeconomic environment, ONEOK remains optimistic about its growth strategy, supported by high-return organic projects and acquisition-related synergies, with expected synergies of approximately $250 million in 2025. The company announced a final investment decision for a new natural gas processing plant in the Permian's Delaware Basin, further solidifying its strategic position in the region. Additionally, ONEOK highlighted the resilience of the energy sector, citing robust domestic and global demand for U.S. energy.

Oneok Financial Statement Overview

Summary
Oneok demonstrates strong revenue growth and profitability, though there are pressures on margins. The balance sheet shows high leverage, which could pose risks if not managed carefully. Cash flow generation remains solid, supporting the company's financial stability.
Income Statement
85
Very Positive
Oneok's income statement shows strong revenue growth with a TTM increase of 11.99%. The company maintains solid profitability with a gross profit margin of 26.58% and a net profit margin of 11.07%. However, there is a slight decline in margins compared to the previous year, indicating some pressure on profitability.
Balance Sheet
70
Positive
The balance sheet reflects a high debt-to-equity ratio of 1.49, indicating significant leverage. However, the company has improved its equity position, and the return on equity remains robust at 16.04%, showcasing effective use of equity to generate profits.
Cash Flow
75
Positive
Cash flow analysis reveals a decrease in free cash flow growth by 6.20% TTM, but the company maintains a healthy operating cash flow to net income ratio of 0.79. The free cash flow to net income ratio of 0.54 suggests adequate cash generation relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue27.95B21.64B17.68B22.87B17.27B8.46B
Gross Profit6.26B5.05B5.75B3.12B3.02B2.03B
EBITDA7.26B6.59B5.11B3.52B3.30B2.00B
Net Income3.09B3.04B2.66B1.72B1.50B612.81M
Balance Sheet
Total Assets64.52B64.07B44.27B24.38B23.62B23.08B
Cash, Cash Equivalents and Short-Term Investments97.00M733.00M338.00M220.00M146.39M524.50M
Total Debt32.47B32.08B21.76B13.70B13.73B14.34B
Total Liabilities42.62B41.94B27.78B17.89B17.61B17.04B
Stockholders Equity21.83B17.04B16.48B6.49B6.02B6.04B
Cash Flow
Free Cash Flow2.88B2.87B2.83B1.70B1.85B-296.31M
Operating Cash Flow5.29B4.89B4.42B2.91B2.55B1.90B
Investing Cash Flow-6.79B-6.61B-6.40B-1.14B-665.29M-2.27B
Financing Cash Flow1.56B2.12B2.10B-1.69B-2.26B875.00M

Oneok Technical Analysis

Technical Analysis Sentiment
Negative
Last Price74.62
Price Trends
50DMA
77.98
Negative
100DMA
79.81
Negative
200DMA
88.97
Negative
Market Momentum
MACD
-0.88
Negative
RSI
43.43
Neutral
STOCH
80.87
Negative
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 74.62 is below the 20-day moving average (MA) of 74.63, below the 50-day MA of 77.98, and below the 200-day MA of 88.97, indicating a bearish trend. The MACD of -0.88 indicates Negative momentum. The RSI at 43.43 is Neutral, neither overbought nor oversold. The STOCH value of 80.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OKE.

Oneok Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$51.84B12.0731.38%7.51%4.67%2.07%
80
Outperform
$69.59B12.0120.43%6.69%-0.55%2.14%
73
Outperform
$48.10B14.5516.05%5.47%47.00%11.86%
71
Outperform
$70.68B29.2019.64%3.40%10.57%-14.22%
70
Outperform
$59.95B21.948.86%4.34%3.95%11.32%
66
Neutral
$36.10B24.0260.30%2.10%5.88%46.35%
66
Neutral
$15.43B7.323.20%5.24%4.22%-60.66%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OKE
Oneok
73.87
-13.34
-15.30%
EPD
Enterprise Products Partners
32.00
4.90
18.08%
KMI
Kinder Morgan
26.73
6.23
30.39%
TRGP
Targa Resources
166.72
22.46
15.57%
WMB
Williams Co
57.38
14.52
33.88%
MPLX
MPLX
50.88
11.60
29.53%

Oneok Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
ONEOK Completes $3 Billion Public Offering
Positive
Aug 13, 2025

On August 12, 2025, ONEOK, Inc. completed a significant public offering of notes totaling $3 billion, with the proceeds intended to repay outstanding commercial paper and senior notes due in September 2025. This strategic financial move is expected to strengthen ONEOK’s financial position and provide flexibility for general corporate purposes, potentially impacting its operations and market positioning positively.

Private Placements and FinancingBusiness Operations and Strategy
ONEOK Announces $3 Billion Senior Notes Offering
Positive
Aug 8, 2025

On August 6, 2025, ONEOK, Inc. announced the pricing of a $3.0 billion senior notes offering, which includes $750 million of 7-year notes, $1.0 billion of 10-year notes, and $1.25 billion of 30-year notes. The proceeds from this offering are intended to repay outstanding commercial paper and senior notes due September 15, 2025, with any remaining funds allocated for general corporate purposes. This strategic financial move is expected to strengthen ONEOK’s financial position by addressing its debt obligations and potentially enhancing its operational flexibility.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
ONEOK Reports Strong Q2 2025 Earnings Boost
Positive
Aug 4, 2025

On August 4, 2025, ONEOK, Inc. reported higher earnings for the second quarter of 2025, with a net income of $841 million and an adjusted EBITDA of $1.98 billion. The results were driven by strategic acquisitions, particularly EnLink and Medallion, which contributed significantly to the company’s performance. The company also repaid nearly $600 million in senior notes and affirmed its full-year 2025 financial guidance ranges. These developments underscore ONEOK’s strong market positioning and its ability to deliver long-term value to stakeholders.

Dividends
Oneok Declares Quarterly Dividend of $1.03 Per Share
Positive
Jul 17, 2025

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.

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.

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.

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.

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: Aug 19, 2025