ONEOK NYSE: OKE said it has agreed to acquire Brazos Midstream's natural gas gathering and processing assets in the Permian Basin's Midland Basin for $4.425 billion, alongside a $9 billion minority equity investment from funds and affiliates managed by Apollo.
ONEOK is downgraded to "Hold" as valuation limits clear double-digit annual total return potential despite strong fundamentals. OKE delivered record Q2 2026 results with 52.8% YoY revenue growth, robust NGL throughput, and raised 2026 EBITDA guidance to $8.35 billion. Growth is underpinned by data center-driven demand, new supply contracts, and a pipeline of expansion projects slated through 2028.
ONEOK is set to acquire Brazos Midstream's Permian Midland Basin natural gas gathering and processing assets for $4.43 billion, expanding its footprint in prolific American oil hub.
ONEOK said on Sunday it has agreed to buy Brazos Midstream's Permian Midland Basin natural gas gathering and processing assets for around $4.43 billion, more than doubling the U.S. pipeline operator's processing capacity in the region.
ONEOK remains a compelling “Buy” for income, value, and growth, supported by a 4.5% yield and a forward P/E of 15.9x. OKE's integrated wellhead-to-water network, record NGL throughput, and rising export demand underpin a robust growth outlook. Management guides for mid-to-high single-digit adjusted EBITDA growth annually over the next 5-7 years, leveraging unused system capacity.
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ONEOK raises its 2026 outlook as project start-ups, higher utilization and commercial wins support mid- to high-single-digit EBITDA growth.
The headline numbers for Oneok (OKE) give insight into how the company performed in the quarter ended June 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
ONEOK NYSE: OKE raised its 2026 financial guidance for the second time this year after reporting higher second-quarter earnings, citing record natural gas liquids throughput, strong refined-products demand and volume growth across its operations.