ONEOK, Inc. (OKE), headquartered in Tulsa, Oklahoma, is a leading provider of midstream services to the natural gas and natural gas liquids (NGL) industry. With a market cap of $47.30 billion, ONEOK plays a crucial role in the energy sector, focusing on gathering, processing, storing, and transporting natural gas and NGL products.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and ONEOK fits this criterion perfectly, signifying its substantial size, stability, and influence in the energy sector. The company's extensive infrastructure and expertise make it a trusted partner for the natural gas and NGL industry, providing essential services that support the efficient and reliable delivery of energy products across the U.S.
OKE shares are trading 2.7% below their 52-week high of $83.31, which they hit on May 21. OKE has gained 1.1% over the past three months, outperforming the Energy Select Sector SPDR Fund (XLE) 2.4% decline over the same time frame.
In the long term, OKE is up 15.4% on a YTD basis, and the shares have returned 36.6% over the past 52 weeks. In comparison, the XLE gained 7.8% in 2024 and rallied 14.4% over the past year.
To confirm the recent bullish price trend, OKE has been trading above its 200-day moving average since early November 2023 and 50-day moving average recently.
ONEOK acquired 450 miles of NGL pipelines from Easton Energy for $280 million, enhancing earnings and synergies and expanding its Gulf Coast infrastructure.
ONEOK reported Q1 earnings on Apr. 30. The stock declined 2.8% on the earnings release day. The company reported net income of $639 million, or $1.09 per share, falling short of Wall Street expectations. The company posted revenue of $4.78 billion for the period and expects full-year earnings to be $4.92 per share.
Highlighting the contrast in performance, rival EnLink Midstream, LLC (ENLC) has underperformed OKE, gaining 8.4% on a YTD basis.
Given its outperformance relative to XLE, analysts are optimistic about OKE's prospects. The stock has a consensus rating of "Moderately Buy" from 18 analysts in coverage. The mean price target of $84.69 reflects a 5.4% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
