ONEOK Spends $3B On EnLink Midstream Stake, $2.6B On Medallion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 29 2024
0mins
Should l Buy OKE?
Source: Benzinga
ONEOK's Acquisition of EnLink Midstream: ONEOK, Inc. is acquiring Global Infrastructure Partners' 43% stake in EnLink Midstream for $3 billion, along with additional interests for a total of approximately $3.3 billion, enhancing its gas processing and crude gathering capacities in the Permian Basin.
Market Impact and Future Plans: Following the acquisition, EnLink shares rose by 13.22%, and ONEOK anticipates achieving annual synergies of $250 million to $450 million within three years, supporting its $2 billion share repurchase program.
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Analyst Views on OKE
Wall Street analysts forecast OKE stock price to fall
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 90.940
Low
75.00
Averages
86.00
High
110.00
Current: 90.940
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. The Company's 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, the Permian Basin region and the North Texas region. The Natural Gas Liquids segment owns and operates facilities that gather, fractionate, treat and distribute natural gas liquids (NGLs) and store Purity NGLs, primarily in the Rocky Mountain region, Mid-Continent region, Permian Basin and Gulf Coast region (including Louisiana). 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.
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Latest Rating Changes on Wall Street
- Tesla Neutral Rating: Goldman Sachs maintains a neutral stance on Tesla, expressing caution regarding its semiconductor ventures, noting a mixed track record in semiconductor engineering, while suggesting potential applications for inference chips in data centers and distributed computing remain to be seen.
- Upgrade Based on Iran War: Wells Fargo upgrades Kinetik, ONEOK, and Enterprise Products Partners from equal weight to overweight, anticipating that the Iran war will create a structural shift in global energy markets, boosting demand for U.S. energy, particularly in Permian gas and NGL supply.
- ESCO Technologies Buy Initiation: Deutsche Bank initiates coverage on ESCO Technologies with a Buy rating and a $350 target price, highlighting its potential for “defensive growth at a discount” in the aerospace and defense sectors, indicating strong confidence in the company's future.
- Arm Rating Upgrade: Wolfe upgrades Arm from market perform to outperform, citing the company's recent in-house chip launch and significantly increased earnings forecasts for FY28 and FY31, setting a target price of $166, reflecting optimism about its new business model.
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- Surge in Options Volume: Comfort Systems USA Inc (Ticker: FIX) saw an options trading volume of 2,013 contracts today, equating to approximately 201,300 shares, which represents about 43.4% of its average daily trading volume of 463,990 shares over the past month, indicating a significant increase in market interest.
- Focus on Specific Strike Price: Among FIX options, the $1260 strike put option has garnered particular attention, with 402 contracts traded today, representing around 40,200 shares, suggesting heightened investor expectations for potential downward price movement, which could impact stock performance.
- Active HCA Options Trading: HCA Healthcare Inc (Ticker: HCA) recorded an options trading volume of 4,644 contracts today, translating to approximately 464,400 shares, which is 41.1% of its average daily trading volume of 1.1 million shares over the past month, reflecting strong market interest in the company.
- High Strike Price Attention: For HCA, the $525 strike put option has seen a trading volume of 1,920 contracts, representing about 192,000 shares, indicating a cautious sentiment among investors regarding the stock's future performance, which may influence its short-term market behavior.
See More
Jefferies Upgrades ONEOK to Buy with $98 Target
- Rating Upgrade: Jefferies has upgraded ONEOK (OKE) from Hold to Buy, raising the price target from $80 to $98, indicating a favorable risk-reward profile that reflects strong market confidence.
- Market Dynamics Analysis: Despite the ongoing impact of the Iran war, ONEOK's stock performance suggests that the market has underestimated the risks to energy infrastructure, with analysts arguing that prolonged disruptions should prompt a reassessment of crude structural dynamics, particularly for Bakken.
- Earnings Stability Outlook: Analysts note that stabilization in Bakken crude can enhance confidence in medium-term earnings, especially as investors have largely overlooked commodity uplift potential in recent years, which could lead to a positive earnings outlook for the company.
- Market Opportunities: While there may be 'cleaner' ways to invest in crude, ONEOK's Bakken leverage allows it to outperform gas-levered or mixed midstream peers if elevated pricing persists, showcasing its competitive advantage in the current market environment.
See More
ETF Component Trading Dynamics Analysis
- Nvidia Trading Activity: On Friday, Nvidia's trading volume exceeded 90.1 million shares with a price drop of about 1.5%, indicating market caution regarding its short-term performance, which could impact investor confidence.
- Tesla Market Performance: Tesla saw over 34.4 million shares traded, with a price decline of approximately 1.1%, reflecting overall market sentiment fluctuations in the electric vehicle sector, potentially leading investors to reassess its future growth potential.
- Oneok's Strong Performance: Oneok rose by about 3.7% on Friday, making it the best-performing component in the ETF, showcasing its relative resilience in the current market environment, which may attract more investor interest.
- Vistra's Weak Trading: Vistra's stock fell by approximately 6.5%, underperforming within the ETF, which may reflect market concerns about its future profitability, affecting its attractiveness in investment portfolios.
See More
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- SolarEdge Stock Surge: SolarEdge Technologies saw a 14% increase in stock price after Jefferies upgraded its rating from underperform to hold, with analysts noting that the escalating Middle East conflict is likely to trigger a repeat of the European energy security dynamics that previously boosted its business during the Russia-Ukraine war.
- Insperity Shareholder Purchase: Insperity's shares rallied nearly 11% after Chairman and CEO Paul Sarvadi disclosed the purchase of 205,000 shares this week, reflecting confidence in the company's future and potentially attracting more investor interest.
- OneOK Rating Upgrade: OneOK's stock gained almost 4% as Jefferies upgraded its rating to buy and raised its price target to $98 per share, with analysts highlighting the Iranian conflict as a catalyst for reassessing crude oil structural dynamics, suggesting a more positive outlook.
- York Space Systems Revenue Beat: York Space Systems' shares surged 22% after reporting full-year revenue of $386.2 million, exceeding analyst expectations of $383.5 million, indicating strong performance in the aerospace and defense sector that may draw increased investor attention.
See More
Key Wall Street Rating Updates on Friday
- Nvidia Rating Reaffirmed: Wolfe maintains Nvidia as an outperform, stating that with the stock priced at just 13x their bull case EPS, it is too cheap to ignore, potentially attracting more investor interest.
- Arm Upgrade: HSBC upgrades Arm from reduce to buy, highlighting its strong positioning in the AI sector, suggesting that its transition to a major AI server CPU player presents a significant undervaluation opportunity for investors.
- Apple App Store Revenue Slowdown: Morgan Stanley reiterates Apple as overweight, noting that App Store revenue growth decelerated to 6% YoY in Q1 2023, falling short of the expected 8%, indicating market caution regarding Apple's future growth prospects.
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