ONEOK’s Promising Growth Amid Market Challenges
Founded in 1906 and based in Tulsa, Oklahoma, ONEOK, Inc. (OKE) stands out as a major midstream energy company. Its focus lies in gathering, processing, storing, and transporting natural gas and natural gas liquids. With a market cap of $57.8 billion, ONEOK is essential to the energy infrastructure in North America, linking producers with consumers.
Stock Performance: A Year to Remember
Over the past 52 weeks, ONEOK’s shares have surpassed the broader market’s performance. During this period, OKE has gained 39%, in contrast to the S&P 500 Index ($SPX), which has risen by 20.5%. However, in 2025, ONEOK’s stock has dipped by 2.8%, while the SPX has increased by 2.9% year to date.
Comparing Industry Standards
When looking closely, ONEOK’s stock has also outperformed the Nasdaq Oil & Gas ETF’s (FTXN) 3.6% returns over the past year.
Strong Financial Performance Drives Stock Rise
Fundamental factors such as robust fee-based earnings, strategic investments, and successful acquisitions have propelled ONEOK’s impressive performance. Following its Q3 earnings announcement on Oct. 29, ONEOK’s shares saw a slight increase in the following two trading days. The company reported significant year-over-year revenue growth of 19.9%, reaching $5 billion, and an earnings per share (EPS) increase of 19.2% to $1.18, though it fell short of analysts’ estimates of $1.23.
Future Projections Look Bright
ONEOK has raised its financial guidance for 2024 due to strong fee-based earnings and synergy improvements. The company anticipates consolidated net income to be between $2.9 billion and $3.1 billion, with adjusted EBITDA expected to be between $6.5 billion and $6.7 billion.
Looking ahead, OKE plans to release its fiscal Q4 earnings after the market closes on Monday, Feb. 24. Analysts predict a 7.5% year-over-year decline in EPS for the current fiscal year ending December, forecasting it to be $5.07. ONEOK has a mixed earnings surprise history, missing consensus estimates in three of the last four quarters.
Analysts’ Consensus Indicates Cautious Optimism
Among the 17 analysts assessing the stock, the consensus rating is classified as a “Moderate Buy.” This includes 11 “Strong Buy” ratings, one “Moderate Buy,” and five “Holds.”
This outlook is more positive than a month prior, when only eight analysts were recommending a “Strong Buy.”
On Feb. 9, Wolfe Research analyst Keith Stanley upgraded ONEOK to “Buy” with a price target of $110, representing a potential increase of 12.7% from current levels.
Furthermore, OKE’s average price target of $112.19 indicates a premium of 14.9% relative to existing prices. Notably, the highest target is set at $132, suggesting a possible upside of 35.2%.
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.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
