Oneok (OKE) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
ONEOK is integrating recent acquisitions, with EnLink and Medallion assets performing well and delivering strong EBITDA growth. OKE's recent divestitures and commodity price pressures have temporarily weighed on earnings, but valuable NGL infrastructure additions position the company for future gains. Despite a short-term bearish outlook, OKE is projected to reduce its debt-to-EBITDA ratio below 3.75 by end of 2026, unlocking share buybacks.
Benson Investment Management Company, Inc. initiated a new position in ONEOK (OKE -2.85%) in the third quarter with an estimated $5.4 million transaction, according to an SEC filing released on Friday.
Oneok Inc. (OKE) closed at $69.09 in the latest trading session, marking a -3.03% move from the prior day.
ONEOK, Inc. - Special Call Company Participants Pierce Norton - President, CEO & Director Walter Hulse - CFO, Treasurer and Executive VP of Investor Relations & Corporate Development Sheridan Swords - Executive VP & Chief Commercial Officer Conference Call Participants Keith Stanley - Wolfe Research, LLC Presentation Keith Stanley Wolfe Research, LLC Hello again, everybody. For those who don't know me, I'm Keith Stanley.
ONEOK is a leading North American midstream operator offering a 5.8% dividend yield and trading near its 52-week low. OKE's fee-based business model, diversified assets, and recent acquisitions support resilient cash flows and strong EBITDA growth. OKE is making progress on deleveraging, integrating Magellan and EnLink assets, and capitalizing on LNG demand and project expansions.
ONEOK, Inc. - Barclays Energy-Power Conference Company Participants Pierce Norton - President, CEO & Director Walter Hulse - CFO, Treasurer and Executive VP of Investor Relations & Corporate Development Sheridan Swords - Executive VP & Chief Commercial Officer Conference Call Participants Theresa Chen - Barclays Bank PLC, Research Division Presentation Operator Good afternoon, everyone. My name is Theresa Chen, and I'm the Midstream and Refining analyst here at Barclays.
Energy Transfer and ONEOK continue to strengthen their midstream operation in North America to provide reliable services to their customers.
ONEOK offers a nearly 6% dividend yield, is attractively valued after a recent share price drop, and doesn't issue a K-1, simplifying taxes. Long-term growth drivers include rising LNG exports, natural gas replacing coal, and surging AI-driven electricity demand, supporting sustained EBITDA growth. ONEOK's EBITDA per share is expected to grow 20% this year and at least 10% over the next two years, with solid growth prospects beyond 2027.
ONEOK's integrated midstream network and recent acquisitions drive strong EBITDA growth and position it for continued expansion in key U.S. energy markets. Robust cash flow supports a 5.6% dividend yield, ongoing share repurchases, and a sustainable payout ratio, underscoring commitment to shareholder returns. Volume growth across NGL, refined, and processing segments, plus new projects, fuel future earnings and resilience despite industry volatility.
OKE's stock price recently dipped quite sharply. We discuss why. We also discuss why we think this is a golden opportunity to load up on a wonderful infrastructure company that pays a very attractive dividend alongside promising long-term growth.
In my view, ONEOK is a classic example of a highly qualitative business that has gone on sale. The midstream operator's growth outlook is holding up, with a new Permian plant recently announced. ONEOK remains on pace to reach its long-term leverage target of 3.5x in 2026.