Stock of the Day

January 25, 2023

ONEOK (OKE)

$93.57
+$0.57 (+0.6%)
Market Cap: $58.60B

About ONEOK

ONEOK, Inc. engages in gathering, processing, fractionation, storage, transportation, and marketing of natural gas and natural gas liquids (NGL) in the United States. It operates through four segments: Natural Gas Gathering and Processing, Natural Gas Liquids, Natural Gas Pipelines, and Refined Products and Crude. The company owns natural gas gathering pipelines and processing plants in the Mid-Continent and Rocky Mountain regions; and provides midstream services to producers of NGLs. It also owns NGL gathering and distribution pipelines in Oklahoma, Kansas, Texas, New Mexico, Montana, North Dakota, Wyoming, and Colorado; terminal and storage facilities in Kansas, Nebraska, Iowa, and Illinois; NGL distribution pipelines in Kansas, Nebraska, Iowa, Illinois, and Indiana; transports refined petroleum products, including unleaded gasoline and diesel; and owns and operates truck- and rail-loading, and -unloading facilities connected to NGL fractionation, storage, and pipeline assets. In addition, the company transports and stores natural gas through regulated interstate and intrastate natural gas transmission pipelines, and natural gas storage facilities. Further, it owns and operates a parking garage in downtown Tulsa, Oklahoma; and leases excess office space and rail cars. Additionally, the company transports, stores, and distributes refined products, NGLs, and crude oil, as well as conducts commodity-related activities, including liquids blending and marketing activities. It serves integrated and independent exploration and production companies; other NGL and natural gas gathering and processing companies; crude oil and natural gas production companies; utilities; industrial companies; natural gasoline distributors; propane distributors; municipalities; ethanol producers; petrochemical, refining, and marketing companies; and heating fuel users, refineries, and exporters. ONEOK, Inc. was founded in 1906 and is headquartered in Tulsa, Oklahoma.

ONEOK Bull Case

Here are some ways that investors could benefit from investing in ONEOK, Inc.:

  • ONEOK, Inc. has a strong dividend yield of approximately 4.8%, which can provide a steady income stream for investors seeking regular returns.
  • The company has set its FY 2026 earnings per share (EPS) guidance at $5.53, indicating stable financial performance expectations moving forward.
  • Recent earnings reports show that ONEOK, Inc. has a solid revenue base, with quarterly revenues exceeding analyst estimates, suggesting robust operational efficiency.
  • With a current stock price around $91.75, the stock is positioned within a reasonable range compared to its 52-week high of $96.07, potentially offering a good entry point for investors.
  • ONEOK, Inc. operates in the midstream energy sector, which is critical for the transportation and processing of natural gas and natural gas liquids, providing essential infrastructure that supports energy markets.

ONEOK Bear Case

Investors should be bearish about investing in ONEOK, Inc. for these reasons:

  • The company has a payout ratio of 76.29%, which indicates that a significant portion of its earnings is being distributed as dividends, potentially limiting funds available for reinvestment in growth opportunities.
  • ONEOK, Inc. recently missed earnings estimates in its latest quarterly report, which may raise concerns about its ability to meet future financial expectations.
  • Analysts have mixed ratings on the stock, with some downgrading their outlook, which could indicate uncertainty about the company's future performance.
  • The stock has experienced volatility, with a 52-week low of $64.02, suggesting potential risks for investors regarding price stability.
  • As a midstream energy company, ONEOK, Inc. is subject to fluctuations in energy prices and regulatory changes, which can impact its profitability and operational efficiency.
← Previous Stock of the DayNext Stock of the Day →

Recent News