ONEOK Raises 2026 Financial Guidance Amid Strong Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 29 2026
0mins
Source: seekingalpha
- 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.
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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: 85.580
Low
75.00
Averages
86.00
High
110.00
Current: 85.580
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.
Morgan Stanley Optimistic on Midstream Stocks Outlook
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- Bloom Energy's Market Positioning: Bloom Energy's solid oxide fuel cells provide on-site power for data center developers, expected to supply up to 2.45 gigawatts of power for Oracle's multi-gigawatt AI factory in New Mexico, replacing previously planned gas turbines, highlighting its core role in AI power supply.
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- Expansion Project Investments: Enbridge has secured CAD 37 billion (approximately USD 26.5 billion) in projects expected to enter commercial service by 2030, which will drive a 5% annual growth in cash flow per share, fueling future dividend increases.
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- Middle East Impact: Morgan Stanley analysts note that investor caution towards midstream stocks stems from uncertainty in the Middle East, yet selective investments may present good entry points, particularly as oil prices have dipped to $75.52 per barrel.
- Oil Price and Market Dynamics: Analyst Robert Kad highlights that while de-escalation of the Iran conflict may lead to near-term selling pressure on energy equities, global oil and refined product markets are experiencing pronounced deficits, with full normalization of trade flows not expected until late 2026 or early 2027.
- Targa Resources Outlook: Morgan Stanley lists Targa Resources as a
See More
Bloom Energy and Oneok Address Data Center Power Demand
- Surging Power Demand: Goldman Sachs projects that power demand in the U.S. data center market will rise from 31 gigawatts (GW) in 2025 to 66 GW by 2027, primarily driven by the rapid expansion of AI infrastructure, presenting significant market opportunities for companies like Bloom Energy and Oneok.
- Bloom Energy's Market Positioning: Bloom Energy's solid oxide fuel cells provide on-site power, helping data center developers address electricity shortages and grid connection delays, positioning the company as a core AI power supplier rather than just a backup power vendor.
- Oneok's Infrastructure Advantage: Oneok's capabilities in transporting and processing natural gas are becoming increasingly relevant as data centers increase their demand for natural gas-fired power, with the company engaging in advanced discussions with customers and evaluating over 40 data-center-related counterparties for potential demand.
- Strong Financial Performance: Bloom Energy's revenue surged 130.4% year-over-year to $751.1 million, with fiscal 2026 revenue expected between $3.4 billion and $3.8 billion, while Oneok's adjusted EBITDA increased 13% year-over-year to nearly $2 billion in Q1 2026, showcasing robust performance for both companies in the market.
See More
Surge in Power Demand Fuels AI Infrastructure Growth
- Power Demand Forecast: Goldman Sachs anticipates that power demand in the U.S. data center market will rise from 31 gigawatts in 2025 to 66 gigawatts by 2027, primarily driven by the rapid expansion of AI infrastructure, making companies like Bloom Energy and Oneok attractive investment options.
- Bloom Energy's Market Positioning: Bloom Energy's solid oxide fuel cells provide on-site power, increasingly positioning the company as a core AI power supplier; Oracle's Project Jupiter in New Mexico will utilize up to 2.45 gigawatts from Bloom Energy servers, replacing previously planned gas turbines and diesel generators.
- Bloom Energy's Financial Performance: The company's revenue surged 130.4% year-over-year to $751.1 million, with management projecting fiscal 2026 revenue between $3.4 billion and $3.8 billion; however, Bloom Energy faces project timing risks, as shares recently fell nearly 10% due to construction delays at a 1.8-gigawatt Crusoe Energy data center project.
- Oneok's Growth Potential: Oneok's infrastructure for transporting and processing natural gas is becoming increasingly relevant, as it engages in advanced discussions with data center customers in Oklahoma and Texas, potentially addressing over 5 billion cubic feet of natural gas demand, with fiscal 2026 adjusted EBITDA expected to range from $8 billion to $8.5 billion, reflecting strong financial performance.
See More
Surge in Power Demand for Global AI Infrastructure
- Surge in Power Demand: Goldman Sachs forecasts that power demand in the U.S. data center market will rise from 31 gigawatts in 2025 to 66 gigawatts by 2027, primarily driven by the rapid expansion of AI infrastructure, presenting significant market opportunities for energy infrastructure companies.
- Bloom Energy's Market Positioning: Bloom Energy's solid oxide fuel cells provide on-site power for data center developers, expected to supply up to 2.45 gigawatts of power for Oracle's multi-gigawatt AI factory in New Mexico, replacing previously planned gas turbines, highlighting its core role in AI power supply.
- Oneok's Growth Potential: Oneok's infrastructure for transporting and processing natural gas is becoming increasingly relevant as data centers demand more natural gas-fired power, with advanced discussions underway with multiple customers representing over 5 billion cubic feet of potential daily demand.
- Strong Financial Performance: Bloom Energy's revenue surged 130.4% year-over-year to $751.1 million, with fiscal 2026 revenue expected between $3.4 billion and $3.8 billion, while Oneok's adjusted EBITDA increased 13% to nearly $2 billion in Q1 2026, showcasing both companies' attractiveness in the AI economy.
See More
Investment Comparison: Enbridge vs. Oneok
- Stable Cash Flow: Enbridge's earnings are backed by over 98% from regulated rate structures or take-or-pay contracts, ensuring stable cash flow that supports its 4.9% high dividend yield, reflecting strong financial stability.
- Diversified Business Model: Enbridge not only holds North America's largest gas utility franchise but is also expanding in renewable energy, which is expected to drive a 5% annual growth in cash flow per share, fueling dividend growth.
- Investment in Growth Projects: Enbridge has secured CA$37 billion (approximately $26.5 billion) in commercial growth capital projects expected to come online by 2030, while pursuing another CA$50 billion (approximately $37.8 billion) in expansion projects, enhancing its competitive edge.
- Future Growth Potential: Oneok is investing about $1 billion in two joint ventures with MPLX, which is expected to support its annual dividend growth of up to 4%, while acquiring and developing more fee-based assets to enhance the stability of its revenue sources.
See More
Dividend Comparison: Enbridge vs. Oneok
- Dividend Yield Advantage: Enbridge offers a 5% dividend yield compared to Oneok's 4.7%, with both companies backed by solid financial profiles, highlighting their attractiveness for stable income investments.
- Financial Stability: Enbridge's leverage ratio stands at 4.5x, which is relatively high, yet over 98% of its earnings are derived from regulated revenue structures, ensuring stable cash flow to support dividend payments.
- Expansion Project Investments: Enbridge has secured CAD 37 billion (approximately USD 26.5 billion) in projects expected to enter commercial service by 2030, which will drive a 5% annual growth in cash flow per share, fueling future dividend increases.
- Future Growth Potential: Oneok plans to increase its dividend by 3% to 4% annually and is investing about USD 1 billion in various joint ventures, demonstrating strong prospects for stable cash flow and dividend growth.
See More
