Tulsa-based ONEOK, Inc. (OKE), with a market cap of over $65.7 billion, is a formidable force in the midstream energy sector. Anchored by an expansive 50,000-mile pipeline network, ONEOK links nearly half of the nation’s refining capacity, seamlessly transporting natural gas (NGZ24), natural gas liquids, and refined products. With a strategy rooted in financial prudence and sustainable operations, ONEOK powers homes, industries, and innovation, embodying reliability and energy security for a progressing world.
Shares of the natural gas company skyrocketed 69.8% over the past 52 weeks and 61.7% on a YTD basis, edging past the broader S&P 500 Index ($SPX), which rallied nearly 31.1% over the past year and 24.1% in 2024.
Narrowing the focus, OKE has also outperformed the Global X MLP & Energy Infrastructure ETF (MLPX). The exchange-traded fund has gained 43.7% over the past 52 weeks and 40.4% on a YTD basis, trailing behind the gains of the natural gas giant.
OKE has outpaced the broader market this year, riding high on resilient oil and gas market dynamics and a solid portfolio of fee-based contracts, insulating it from price volatility. Its long legacy of consistent dividend payouts underscores its financial strength.
Amid shifting energy landscapes, ONEOK’s strategic infrastructure investments and prudent management have further cemented its reputation as a growth and income powerhouse, enticing investors with a compelling mix of stability and opportunity. In fact, OKE hit its all-time high of $113.23 in yesterday’s trading session.
Shares of ONEOK rose about 1.4% in the subsequent two trading sessions following the company's Q3 earnings release on Oct. 29 after the market close. While its revenue surged 19.9% year over year to $5 billion, EPS rose 19.2% to $1.18.
For the current fiscal year, ending in December, analysts expect ONEOK’s EPS to dip 6% to $5.15. The company’s earnings history has been a bit inconsistent, with three consensus estimates misses in the last four quarters. However, it did manage to surpass expectations on one occasion, showing occasional upside amid the fluctuations.
OKE stock has a consensus “Moderate Buy” rating overall. Among the 17 analysts in coverage, nine suggest a “Strong Buy,” one advises a “Moderate Buy,” and the remaining seven analysts play it safe with a “Hold.”
This configuration is slightly more bullish than three months ago, with eight analysts giving a “Strong Buy.”
Last week, UBS analyst Brian Reynolds reinforced his bullish stance on OKE, maintaining a “Buy” rating and raising the price target from $112 to $132 - also the Street-high price target - which implies an upside potential of 16.7%.
The stock is currently trading above the mean price target of $102.27.
