Oneok Demonstrates Strong Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 23 2026
0mins
Should l Buy OKE?
Source: NASDAQ.COM
- Stable Dividend Yield: Oneok has maintained a stable and growing dividend for over 25 years, currently offering a yield exceeding 5%, which stands out in the energy sector and reflects its resilience in a volatile market.
- Strong Financial Foundation: The company boasts an investment-grade balance sheet with a low leverage ratio, allowing it to flexibly reinvest in growth while retaining 15% to 25% of cash flow after dividends and share repurchases, enhancing financial stability.
- Acquisitions and Expansion Projects: Oneok's recent acquisition of Magellan Midstream Partners for $18.8 billion, along with several expansion projects, is expected to drive a 9% compound annual growth in earnings per share over the next few years, further enhancing its competitive position.
- Reasonable Valuation Level: Despite a 15% stock price rally, Oneok's current forward P/E ratio is about 15, below the S&P 500's 21.5, making it an attractive buy opportunity given its high dividend yield and healthy earnings growth rate.
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Analyst Views on OKE
Wall Street analysts forecast OKE stock price to rise
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 85.870
Low
75.00
Averages
86.00
High
110.00
Current: 85.870
Low
75.00
Averages
86.00
High
110.00
About OKE
ONEOK, Inc. is a midstream operator that provides gathering, processing, fractionation, transportation, storage and marine export services. Its segments include Natural Gas Gathering and Processing; Natural Gas Liquids; Natural Gas Pipelines, and Refined Products and Crude. The Natural Gas Gathering and Processing segment provides midstream services to producers in the Rocky Mountain region, the Mid-Continent region, and the Permian Basin region. The Natural Gas Liquids segment gathers, treats, fractionates and transports natural gas liquids (NGLs) and stores, markets and distributes Purity NGLs. It provides midstream services to producers of NGLs in the Rocky Mountain region, Mid-Continent region, Permian Basin and Gulf Coast region and delivers those products to the market. The Natural Gas Pipelines segment transports, stores and markets natural gas. The Refined Products and Crude segment gathers, transports, stores, distributes, blends and markets Refined Products and crude oil.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Oneok Reports Strong Q1 Earnings Growth and Raises Outlook
- Strong Financial Performance: Oneok reported a net income of $776 million for Q1, translating to $1.23 per share, marking a 12% year-over-year increase, indicating significant profitability under robust market conditions.
- EBITDA Growth: The adjusted EBITDA rose 13% to $2 billion, reflecting strong demand in natural gas and refined product transportation, further solidifying the company's market position.
- Optimistic Future Outlook: Oneok raised its 2026 adjusted EBITDA guidance to between $8 billion and $8.5 billion, up from the previous range of $7.9 billion to $8.3 billion, showcasing confidence in future market conditions.
- Ongoing Investment for Growth: The company plans to invest $2.7 billion to $3.2 billion across various growth projects, including rebuilding the Medford Fractionator and expanding natural gas pipelines, which is expected to drive future dividend growth.
See More
ONEOK Downgraded by Scotiabank Yet Shares Rise 2.7%
- Rating Downgrade Impact: Despite Scotiabank downgrading ONEOK from Outperform to Sector Perform with a price target cut from $92 to $89, the stock rose 2.7% on Thursday, indicating market confidence in its fundamentals.
- Earnings Guidance Adjustment: ONEOK reported Q1 earnings that missed estimates but raised its FY 2026 adjusted EBITDA guidance to a range of $8B-$8.5B, suggesting long-term profitability remains promising despite short-term challenges.
- Competitive Market Pressure: Analysts noted that ONEOK's relative value proposition appears less attractive compared to other liquid companies like Targa Resources and Kinetik Koldings, which have higher operational leverage in the Permian region, potentially shifting investor sentiment towards these competitors.
- Geopolitical Risks: With the ongoing Middle East conflict, analysts warn of potential asymmetric downside risks for ONEOK as the realization sets in that the company lacks significant earnings torque to higher commodity prices, which could pressure its stock price.
See More
ONEOK Raises 2026 Financial Guidance Amid Strong Performance
- Guidance Increase: CEO Pierce Norton announced an increase in 2026 net income guidance to approximately $3.5 billion, with diluted earnings per share expected at $5.53 and adjusted EBITDA guidance at $8.25 billion, reflecting strong performance in a constructive market environment.
- Strong Q1 Earnings: ONEOK reported a net income of $776 million for Q1, translating to $1.23 per diluted share, despite a $60 million non-cash impairment loss, indicating resilience in profitability amid market volatility.
- Project Expansion and Capacity Boost: The relocation of the 150 million cubic feet per day Shadowfax natural gas processing plant to the Midland Basin and the planned 60 million cubic feet per day Cutter plant in Powder River, set for completion in Q4 2026, are expected to significantly enhance overall capacity.
- Robust Market Demand: NGL volumes increased by 11% year-over-year in the Rockies, 4% in the Mid-Continent, and over 30% in the Gulf Coast Permian region, demonstrating strong momentum in export demand and market share, further solidifying the company's competitive position.
See More
ONEOK Reports Q1 Net Income Growth
- Net Income Growth: ONEOK reported a first-quarter net income of $774 million, or $1.23 per share, compared to $636 million and $1.04 per share last year, indicating a significant improvement in profitability and reflecting the company's strong market performance.
- Revenue Increase: Total revenues for the quarter reached $9.62 billion, up 19.5% from $8.04 billion last year, primarily driven by robust demand in gas and liquid transportation, further solidifying the company's market position.
- Optimistic Future Outlook: ONEOK raised its 2026 net income guidance to a range of $3.21 billion to $3.79 billion, demonstrating confidence in future growth and likely attracting more investor interest in its long-term potential.
- EBITDA Guidance Increase: The adjusted EBITDA guidance was also increased to a range of $8.0 billion to $8.5 billion, indicating ongoing improvements in cost control and operational efficiency, which are expected to further enhance profitability.
See More
Oneok (OKE) Q3 2025 Earnings Transcript
See More
Midstream Energy Earnings Week Begins
- Earnings Expectations: Enterprise Products Partners (EPD) is set to report earnings on April 28, with a consensus EPS estimate of $0.73 on revenue of $13.62 billion, reflecting an 11.7% year-over-year decline, while ONEOK (OKE) is expected to report an EPS of $1.31 and revenue of $8.23 billion, highlighting market interest in midstream energy.
- Market Focus: EPD will report before the market opens, with investors keenly watching for steady fee-based cash flows and strong NGL volumes, particularly as Gulf Coast exports remain a focal point in the current energy landscape.
- Analyst Insights: Analyst Melissa Tucker noted that while EPD remains a high-quality midstream operator with stable cash flows and a strong balance sheet, the recent halving of its distribution growth and current valuation appear stretched compared to historical levels, raising concerns about justifying its premium multiple.
- OKE Rating Downgrade: Tucker downgraded ONEOK (OKE) from Strong Buy to Buy due to underwhelming 2026 guidance and limited near-term growth prospects, despite its diversified midstream model providing stability; however, most growth projects are not expected to materially impact earnings until 2028.
See More
Oneok Reports Strong Q1 Earnings Growth and Raises Outlook
- Strong Financial Performance: Oneok reported a net income of $776 million for Q1, translating to $1.23 per share, marking a 12% year-over-year increase, indicating significant profitability under robust market conditions.
- EBITDA Growth: The adjusted EBITDA rose 13% to $2 billion, reflecting strong demand in natural gas and refined product transportation, further solidifying the company's market position.
- Optimistic Future Outlook: Oneok raised its 2026 adjusted EBITDA guidance to between $8 billion and $8.5 billion, up from the previous range of $7.9 billion to $8.3 billion, showcasing confidence in future market conditions.
- Ongoing Investment for Growth: The company plans to invest $2.7 billion to $3.2 billion across various growth projects, including rebuilding the Medford Fractionator and expanding natural gas pipelines, which is expected to drive future dividend growth.
See More
ONEOK Downgraded by Scotiabank Yet Shares Rise 2.7%
- Rating Downgrade Impact: Despite Scotiabank downgrading ONEOK from Outperform to Sector Perform with a price target cut from $92 to $89, the stock rose 2.7% on Thursday, indicating market confidence in its fundamentals.
- Earnings Guidance Adjustment: ONEOK reported Q1 earnings that missed estimates but raised its FY 2026 adjusted EBITDA guidance to a range of $8B-$8.5B, suggesting long-term profitability remains promising despite short-term challenges.
- Competitive Market Pressure: Analysts noted that ONEOK's relative value proposition appears less attractive compared to other liquid companies like Targa Resources and Kinetik Koldings, which have higher operational leverage in the Permian region, potentially shifting investor sentiment towards these competitors.
- Geopolitical Risks: With the ongoing Middle East conflict, analysts warn of potential asymmetric downside risks for ONEOK as the realization sets in that the company lacks significant earnings torque to higher commodity prices, which could pressure its stock price.
See More
ONEOK Raises 2026 Financial Guidance Amid Strong Performance
- Guidance Increase: CEO Pierce Norton announced an increase in 2026 net income guidance to approximately $3.5 billion, with diluted earnings per share expected at $5.53 and adjusted EBITDA guidance at $8.25 billion, reflecting strong performance in a constructive market environment.
- Strong Q1 Earnings: ONEOK reported a net income of $776 million for Q1, translating to $1.23 per diluted share, despite a $60 million non-cash impairment loss, indicating resilience in profitability amid market volatility.
- Project Expansion and Capacity Boost: The relocation of the 150 million cubic feet per day Shadowfax natural gas processing plant to the Midland Basin and the planned 60 million cubic feet per day Cutter plant in Powder River, set for completion in Q4 2026, are expected to significantly enhance overall capacity.
- Robust Market Demand: NGL volumes increased by 11% year-over-year in the Rockies, 4% in the Mid-Continent, and over 30% in the Gulf Coast Permian region, demonstrating strong momentum in export demand and market share, further solidifying the company's competitive position.
See More
ONEOK Reports Q1 Net Income Growth
- Net Income Growth: ONEOK reported a first-quarter net income of $774 million, or $1.23 per share, compared to $636 million and $1.04 per share last year, indicating a significant improvement in profitability and reflecting the company's strong market performance.
- Revenue Increase: Total revenues for the quarter reached $9.62 billion, up 19.5% from $8.04 billion last year, primarily driven by robust demand in gas and liquid transportation, further solidifying the company's market position.
- Optimistic Future Outlook: ONEOK raised its 2026 net income guidance to a range of $3.21 billion to $3.79 billion, demonstrating confidence in future growth and likely attracting more investor interest in its long-term potential.
- EBITDA Guidance Increase: The adjusted EBITDA guidance was also increased to a range of $8.0 billion to $8.5 billion, indicating ongoing improvements in cost control and operational efficiency, which are expected to further enhance profitability.
See More
Oneok (OKE) Q3 2025 Earnings Transcript
See More
Midstream Energy Earnings Week Begins
- Earnings Expectations: Enterprise Products Partners (EPD) is set to report earnings on April 28, with a consensus EPS estimate of $0.73 on revenue of $13.62 billion, reflecting an 11.7% year-over-year decline, while ONEOK (OKE) is expected to report an EPS of $1.31 and revenue of $8.23 billion, highlighting market interest in midstream energy.
- Market Focus: EPD will report before the market opens, with investors keenly watching for steady fee-based cash flows and strong NGL volumes, particularly as Gulf Coast exports remain a focal point in the current energy landscape.
- Analyst Insights: Analyst Melissa Tucker noted that while EPD remains a high-quality midstream operator with stable cash flows and a strong balance sheet, the recent halving of its distribution growth and current valuation appear stretched compared to historical levels, raising concerns about justifying its premium multiple.
- OKE Rating Downgrade: Tucker downgraded ONEOK (OKE) from Strong Buy to Buy due to underwhelming 2026 guidance and limited near-term growth prospects, despite its diversified midstream model providing stability; however, most growth projects are not expected to materially impact earnings until 2028.
See More
