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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's recent struggles can be attributed to high debt levels and integration risks associated with its strategic acquisitions, including the Delaware Basin Gathering & Processing (G&P) system. Despite these challenges, the company's fee-based revenue streams and diversified portfolio are expected to drive long-term cash flow and EBITDA growth.

1.c. Company Highlights

2. ONEOK's Q3 2025 Earnings: A Strong Performance

ONEOK reported a net income of $940 million, or $1.49 per share, for the third quarter of 2025, beating analyst estimates of $1.44 per share. Adjusted EBITDA totaled $2.12 billion, with $470 million from acquired EnLink and Medallion assets. The company's financial performance was driven by increases in NGL raw feed throughput volumes, refined product volumes, and natural gas gathering and processing volumes. Walt Hulse, Chief Financial Officer, noted that their financial flexibility, balance sheet, and disciplined approach to capital allocation continue to support their ability to generate long-term value for shareholders.

Publication Date: Oct -30

📋 Highlights
  • Q3 Net Income Growth:: Net income rose 10% to $940 million ($1.49/share) from Q2 2025.
  • Adjusted EBITDA Performance:: EBITDA reached $2.12 billion, including $470 million from acquired EnLink and Medallion assets.
  • Synergy Guidance:: Reaffirmed $250 million in synergy-related EBITDA for 2025, driven by integration of recent acquisitions.
  • Capital Allocation Strategy:: Approaching 3.5x debt-to-EBITDA target, with flexibility for stock buybacks as leverage improves.

Segment Performance

The NGL segment benefited from selling products out of inventory and refining products due to the timing of operational gains and losses. Sheridan Swords, Executive Vice President and Chief Commercial Officer, highlighted the completion of primary Easton asset connections, providing key connectivity between Mont Belvieu NGL assets and Houston area refined product terminals. The company's commercial update also showed growth in the Permian and Bakken, with expectations for continued volume growth.

Valuation and Growth Prospects

ONEOK's current valuation metrics indicate a reasonable price for the company's earnings. The P/E Ratio stands at 13.63, EV/EBITDA at 10.29, and ROE at 16.04%. Analysts estimate revenue growth at 7.1% for the next year. The company's confidence in its strategy, strong fundamentals, and catalysts for continued growth and long-term value for investors are positives. As Pierce Norton, President and Chief Executive Officer, emphasized, their focus is on finishing 2025 strong and carrying that momentum into 2026.

Capital Allocation and Future Plans

Walt Hulse discussed capital allocation, stating that as they approach their debt-to-EBITDA target of 3.5x, they will free up flexibility to add stock buybacks to the equation. The company is confident in its ability to grow into 2026 and will provide specific guidance in early 2026. With a strong performance in Q3 2025, ONEOK is well-positioned to continue its growth trajectory, driven by its disciplined approach to capital allocation and its focus on operational excellence.

Growth Drivers and Challenges

Sheridan Swords mentioned synergies, growth projects coming online, and market share growth as tailwinds for earnings growth in 2026, while highlighting a flat crude oil production environment as a potential headwind. The company's ability to capture Waha spreads, leveraging capacity on ONEOK West Texas assets and the EnLink system, is also seen as a positive. With a robust pipeline of growth projects and a strong commercial position, ONEOK is poised to continue its growth story.

3. NewsRoom

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The Next 3 Years Could Make Or Break Portfolios - Here's My Plan

Dec -02

Source: seekingalpha.com

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ONEOK, Inc. $OKE Stock Holdings Trimmed by AMJ Financial Wealth Management

Dec -02

Source: defenseworld.net

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PGIM Jennison Energy Infrastructure Fund Q3 2025 Contributors And Detractors

Nov -30

Source: seekingalpha.com

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7%+ Yields: I Am Giving Thanks For My Favorite Black Friday Special

Nov -28

Source: seekingalpha.com

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8 'Safer' Dividend Buys In Barron's 23 Better November Bets Than T-Bills

Nov -28

Source: seekingalpha.com

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American Century Companies Inc. Buys 268,379 Shares of ONEOK, Inc. $OKE

Nov -26

Source: defenseworld.net

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Advisors Asset Management Inc. Buys 10,014 Shares of ONEOK, Inc. $OKE

Nov -26

Source: defenseworld.net

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My Biggest Energy Call In Years - And Almost Everyone Is Missing It

Nov -25

Source: seekingalpha.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: 7.5/10

Value: 7.2

Growth: 6.8

Quality: 7.1

Yield: 10.0

Momentum: 6.5

Volatility: 7.7

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Enterprise Products Partners

A-Score: 6.9/10

Value: 5.7

Growth: 5.0

Quality: 4.9

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

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Energy Transfer

A-Score: 6.7/10

Value: 7.2

Growth: 3.6

Quality: 4.1

Yield: 10.0

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Kinder Morgan

A-Score: 6.4/10

Value: 4.0

Growth: 3.6

Quality: 5.2

Yield: 9.0

Momentum: 7.0

Volatility: 9.3

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Williams

A-Score: 6.2/10

Value: 2.0

Growth: 4.6

Quality: 5.6

Yield: 8.0

Momentum: 8.0

Volatility: 9.0

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ONEOK

A-Score: 6.0/10

Value: 5.5

Growth: 5.2

Quality: 4.8

Yield: 10.0

Momentum: 2.0

Volatility: 8.3

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

76.34$

Current Price

76.34$

Potential

-0.00%

Expected Cash-Flows