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1. Company Snapshot

1.a. Company Description

ONEOK, 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.

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1.b. Last Insights on OKE

ONEOK, Inc.'s recent performance was driven by strong financial results, with a 12% increase in net income to $3.39 billion for 2025 and an 18% rise in adjusted EBITDA to $8.02 billion. The company's diversified segments, including NGL, refined products, and natural gas, have delivered growth. Strategic acquisitions, such as EnLink and Medallion, have enhanced EBITDA and revenue growth. A Strong Buy rating was maintained, citing robust execution and high-margin fee-based contracts. (Source: ONEOK Inc (OKE) Q4 2025 Earnings Call Highlights, ONEOK: Winning The Big AI Boom)

1.c. Company Highlights

2. ONEOK's Strong 2025 Results Set Stage for Continued Growth

ONEOK, Inc. reported a 12% increase in net income attributable to the company, totaling $3,390,000,000, and an 18% increase in adjusted EBITDA to $8,020,000,000 for 2025. The company's earnings per share (EPS) came in at $1.55, beating analyst estimates of $1.5. The strong financial performance was driven by volume growth, completed projects, and $150,000,000 of incremental acquisition synergies. ONEOK's diversified platform advantage, driven by the integration of major acquisitions, realized nearly $500,000,000 of total synergies since closing the Magellan acquisition.

Publication Date: Feb -25

📋 Highlights
  • 2025 Financial Performance:: Net income rose 12% to $3.39B, with adjusted EBITDA up 18% to $8.02B.
  • 2026 EBITDA Guidance:: Midpoint of $8.1B, supported by $150M incremental synergies and volume growth from projects.
  • Shareholder Returns:: $2.7B returned in 2025 via dividends/share buybacks; 4% dividend increase announced.
  • Capital Projects Progress:: Shadowfax plant to launch Q1 2026, Delaware expansions by Q3 2026; $8.1B EBITDA target includes additive growth.
  • Conservative Guidance & Debt Target:: Assumes $55–$60 WTI; 3.5x debt-to-EBITDA target by 2027, with excess cash allocated to debt reduction.

Operational Highlights

ONEOK achieved a high-quality earnings mix with approximately 90% fee-based earnings, demonstrating its disciplined approach to managing commodity prices. The company's large capital growth projects are progressing according to plan, with the Shadowfax plant expected to enter service by the end of the first quarter and the expansions of Delaware natural gas processing assets expected to be completed early in the third quarter.

2026 Outlook

The company's guidance for 2026 includes an EBITDA target of $8.1 billion, with assumptions around commodity prices, including a $55 to $60 per barrel range. ONEOK has built conservatism into its guidance, and its systematic hedging program for commodity exposures provides additional protection. Analysts estimate next year's revenue growth at 3.9%, indicating a continued upward trajectory.

Valuation and Dividend

ONEOK's current valuation metrics, including a P/E Ratio of 15.38, P/B Ratio of 2.32, and Dividend Yield of 5.02%, suggest a relatively attractive investment opportunity. The company's commitment to returning value to shareholders is evident in its recent 4% dividend increase and $2,700,000,000 returned to shareholders through dividends and share repurchases in 2025.

Growth Opportunities

ONEOK has visibility to growth in 2026 and beyond, driven by its diversified platform and strategic positioning in key regions, including the Bakken and Permian Basins. The company's strong NGL system, with around 740,000 barrels a day of capacity, is well-positioned to attract third-party volumes, and its natural gas storage opportunities in Texas, Oklahoma, and Louisiana provide additional growth potential.

Debt and Capital Allocation

ONEOK targets a 3.5 times debt-to-EBITDA ratio and expects to reach it by 2027, with excess free cash flow potentially going to debt repayment. The company's disciplined approach to capital allocation and commitment to maintaining a strong balance sheet position it for continued success.

3. NewsRoom

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American Century Companies Inc. Raises Stake in ONEOK, Inc. $OKE

Mar -02

Source: defenseworld.net

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Oneok (OKE) Reports Q4 Earnings: What Key Metrics Have to Say

Feb -27

Source: zacks.com

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ONEOK Q4 Earnings Top Estimates, Revenues Rise Year Over Year

Feb -25

Source: zacks.com

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ONEOK: Winning The Big AI Boom

Feb -25

Source: seekingalpha.com

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After A Recent Growth Spurt, This 4.9%-Yielding Dividend Stock is Slowing to A Crawl in 2026. Is a Reacceleration Coming?

Feb -25

Source: fool.com

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ONEOK, Inc. (OKE) Q4 2025 Earnings Call Transcript

Feb -25

Source: seekingalpha.com

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ONEOK Inc (OKE) Q4 2025 Earnings Call Highlights: Strong Financial Performance and Strategic Growth Initiatives

Feb -24

Source: gurufocus.com

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Why Oneok Fell Today

Feb -24

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Natural Gas Liquids

Expected Growth: 4.8%

The increasing demand for NGLs, driven by petrochemical and export markets, will support growth in this segment. Additionally, ONEOK's strategic asset locations and marketing capabilities will continue to drive NGL volumes and revenue growth.

Natural Gas Pipelines

Expected Growth: 4.2%

The growth in natural gas production and demand for pipeline infrastructure will drive revenue growth in this segment. ONEOK's pipeline assets are strategically located in high-growth production areas, positioning the company for future growth opportunities.

Natural Gas Gathering and Processing

Expected Growth: 4.9%

The increasing natural gas production in the Mid-Continent and Rocky Mountain regions will drive growth in this segment. ONEOK's strategic asset locations and producer relationships will continue to support growth in gathering and processing volumes and revenue.

Refined Products and Crude

Expected Growth: 4.1%

The steady demand for refined petroleum products will support revenue growth in this segment. ONEOK's strategic asset locations and marketing capabilities will continue to drive refined product volumes and revenue growth.

Other and Eliminations

Expected Growth: 4.4%

The growth in ONEOK's core businesses will drive revenue growth in this segment. The intersegment eliminations will continue to support the company's overall revenue growth.

7. Detailed Products

Natural Gas Gathering and Processing

ONEOK's natural gas gathering and processing segment provides midstream services to producers, including gathering, compressing, treating, and processing natural gas and natural gas liquids (NGLs).

Natural Gas Liquids

ONEOK's NGL segment gathers, fractionates, and markets NGLs, including ethane, propane, isoparaffins, and natural gasoline.

Natural Gas Pipelines

ONEOK's natural gas pipelines segment transports natural gas through its pipeline systems, connecting supply basins to market areas.

8. ONEOK, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ONEOK, Inc. is medium due to the availability of alternative energy sources such as renewable energy and the increasing trend of electrification of transportation.

Bargaining Power Of Customers

The bargaining power of customers for ONEOK, Inc. is low due to the company's diversified customer base and the lack of significant buyer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for ONEOK, Inc. is medium due to the company's dependence on a few large suppliers and the potential for supply chain disruptions.

Threat Of New Entrants

The threat of new entrants for ONEOK, Inc. is low due to the high barriers to entry in the energy industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for ONEOK, Inc. is high due to the competitive nature of the energy industry, with many established players and a high level of competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 56.82%
Debt Cost 5.37%
Equity Weight 43.18%
Equity Cost 11.95%
WACC 8.21%
Leverage 131.58%

11. Quality Control: ONEOK, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Cheniere Energy Partners

A-Score: 7.1/10

Value: 7.2

Growth: 6.8

Quality: 7.1

Yield: 10.0

Momentum: 4.0

Volatility: 7.7

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Enterprise Products Partners

A-Score: 7.0/10

Value: 5.8

Growth: 5.1

Quality: 6.4

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

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Energy Transfer

A-Score: 6.4/10

Value: 7.3

Growth: 3.6

Quality: 3.9

Yield: 10.0

Momentum: 4.0

Volatility: 9.7

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Kinder Morgan

A-Score: 6.2/10

Value: 3.9

Growth: 3.6

Quality: 5.3

Yield: 9.0

Momentum: 6.0

Volatility: 9.7

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Williams

A-Score: 6.2/10

Value: 2.0

Growth: 4.3

Quality: 5.7

Yield: 9.0

Momentum: 7.0

Volatility: 9.0

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ONEOK

A-Score: 6.1/10

Value: 6.5

Growth: 5.2

Quality: 5.2

Yield: 10.0

Momentum: 1.0

Volatility: 8.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

86.12$

Current Price

86.12$

Potential

-0.00%

Expected Cash-Flows