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ONEOK: 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.

OKE

USD 82.89

-5.08%

A-Score: 6.1/10

Publication date: February 24, 2026

Full Report

Author: Analystock.ai

📋 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.

ONEOK's A-Score