ONEOK, Inc. Sees Remarkable Growth Amid Strong Market Performance
Natural Gas Leader Thrives with Significant Returns and Strong Earnings
Tulsa-based ONEOK, Inc. (OKE), boasting a market cap of over $65.7 billion, is a key player in the midstream energy industry. With an extensive pipeline network stretching 50,000 miles, ONEOK connects almost half of the country’s refining capacity, efficiently transporting natural gas (NGZ24), natural gas liquids, and refined products. The company emphasizes financial discipline and sustainable operations, ensuring a reliable energy supply for homes and industries.
In the past year, shares of ONEOK have skyrocketed 69.8%, and they are up 61.7% year to date, far exceeding the broader S&P 500 Index ($SPX), which rose nearly 31.1% over the past year and 24.1% in 2024.
When comparing performance, OKE has outpaced the Global X MLP & Energy Infrastructure ETF (MLPX), which recorded a gain of 43.7% over the last 52 weeks and 40.4% year to date, falling short of the growth seen by the natural gas giant.
This year, OKE’s performance has benefitted from a robust oil and gas market and a strong portfolio of fee-based contracts, which help shield it from price fluctuations. Its long-standing history of reliable dividend payments emphasizes the company’s financial health.
As the energy sector undergoes shifts, ONEOK’s strategic investments and sound management have bolstered its image as a dependable growth and income choice, appealing to investors looking for stability. Yesterday, OKE achieved its all-time high of $113.23 in trading.
Following the company’s Q3 earnings release on Oct. 29, shares of ONEOK rose approximately 1.4% over the next two trading sessions. The report indicated a revenue increase of 19.9% year over year, reaching $5 billion, while EPS rose 19.2% to $1.18.
For the current fiscal year, which concludes in December, analysts project a 6% drop in EPS to $5.15. ONEOK’s earnings history has shown some volatility, with three misses among consensus estimates in the last four quarters, though it managed to exceed expectations on one occasion.
Currently, OKE stock holds a consensus “Moderate Buy” rating among analysts. Of the 17 analysts covering the stock, nine recommend a “Strong Buy,” one suggests a “Moderate Buy,” while seven analysts maintain a “Hold” rating.
This advisory rating marks a slight improvement from three months ago, which saw eight analysts issuing a “Strong Buy.”
Recently, UBS analyst Brian Reynolds reaffirmed his positive outlook for OKE by maintaining a “Buy” rating and raising the price target from $112 to $132, the highest target on the Street. This adjustment suggests a potential upside of 16.7%.
The stock currently trades above the mean price target of $102.27.
On the date of publication, Sristi Jayaswal did not own (either directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
