It has been about a month since the last earnings report for Oneok Inc. (OKE) . Shares have added about 9.7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Oneok due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for ONEOK, Inc. before we dive into how investors and analysts have reacted as of late.ONEOK Q4 Earnings Top Estimate ...

Wall Street Is Buying These 3 LNG Stocks After Iran Missiles Hit Qatar's Gas Facilities - 24/7 Wall St. S&P 5006,548.90 -1.21% Dow Jones45,826.00 -0.73% Nasdaq 10024,026.70 -1.67% Russell 20002,452.51 -1.99% Nikkei 22551,915.50 -2.59% Stock Market Live March 20, 2026: S&P 500 (SPY) Lower on Higher Oil Prices Again Investing Wall Street Is Buying These 3 LNG Stocks After Iran Missiles Hit Qatar's Gas Facilities By Joel SouthPublished Mar 20, 1:45PM EDT Quick Read Cheniere Energy (LNG) operates two active exp ...

Core Viewpoint - The ongoing conflict in Iran is reshaping global energy markets, leading to significant stock upgrades for companies like Cheniere Energy, Equinor, and SM Energy, as they benefit from supply disruptions and rising oil prices [1][3][5]. Group 1: Company Performance - Cheniere Energy (LNG) has seen a year-to-date stock surge of 45.38%, with FY2025 revenue reaching $19.98 billion and net income of $5.33 billion, marking increases of 26.62% and 63.9% year-over-year respectively [2][8]. - Equinor (EQNR) has experienced a 73.76% increase year-to-date, benefiting from being Europe's lowest-cost gas supplier, with a cash flow impact of $1.2 billion for every $10 increase in oil prices [2][9]. - SM Energy (SM) has gained 49.65% year-to-date, with FY2025 operating cash flow of $2.01 billion, and each dollar above its $60/bbl guidance directly contributes to cash flow [2][10]. Group 2: Market Dynamics - The closure of the Strait of Hormuz by Iran has driven WTI crude prices from $65 to $98.48 per barrel, while Brent has surpassed $100, prompting European and Asian buyers to seek alternatives from US producers [3][5]. - The geopolitical tensions have led to a significant shift in energy supply dynamics, with companies like Cheniere and Equinor positioned to capture increased demand from Europe [3][9]. - Analysts are monitoring oil prices, with a focus on whether they can hold above $90, as this will impact earnings estimates for the companies mentioned [17]. Group 3: Future Outlook - Cheniere is expected to produce approximately 51 to 53 million tons of LNG in 2026, with over 95% of its capacity contracted for the next decade, providing long-term revenue visibility [8]. - Equinor anticipates a 3% production growth in 2026, with substantial earnings tailwinds due to current oil prices being significantly above their planning assumptions [9]. - SM Energy's recent merger with Civitas Resources is expected to yield $200-300 million in synergies, enhancing its market position [11]. Group 4: Additional Companies - ONEOK (OKE) has seen a 22% increase year-to-date, benefiting from sustained volume growth in US natural gas and NGL exports, with 90% of its earnings being fee-based [12][13]. - Air Products and Chemicals (APD) is facing execution risks due to its NEOM Green Hydrogen Project in Saudi Arabia, but analysts still see potential upside with a consensus target around $307 [14][16].

Energy stocks can be great for dividend income. The global economy needs oil, gas, and electricity around the clock, so the companies in this space are always humming. However, the energy industry can be highly volatile at times, and the ongoing war in the Middle East is a prime example. Oil and gas prices can fluctuate, as can energy stock share prices. The best plan is usually to focus on the long term, buying into the industry's top names for their proven ability to weather the ups and downs. Will AI ...

Group 1: Stock Performance - Oneok Inc. (OKE) closed at $86.56, reflecting a +1.45% change from the previous day's closing price, outperforming the S&P 500 which gained 0.25% [1] - Prior to the recent trading session, Oneok's shares had decreased by 0.92%, underperforming the Oils-Energy sector which gained 7.67% [1] Group 2: Earnings Estimates - Oneok Inc. is expected to report an EPS of $1.31, indicating a growth of 25.96% compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projected at $9.16 billion, representing a 13.93% increase from the previous year [2] - For the annual period, earnings are anticipated to be $5.55 per share with revenue of $38.15 billion, reflecting increases of +2.4% and +13.46% respectively from last year [3] Group 3: Analyst Estimates and Rankings - Recent adjustments to analyst estimates for Oneok Inc. indicate changing business trends, with upward revisions suggesting analysts' positive outlook on the company's profitability [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Oneok Inc. at 3 (Hold) [6] - Over the last 30 days, the Zacks Consensus EPS estimate has decreased by 4.57% [6] Group 4: Valuation Metrics - Oneok Inc. has a Forward P/E ratio of 15.37, which is higher than the industry average of 13.2, indicating it is trading at a premium [7] - The company has a PEG ratio of 6.43, significantly higher than the industry average PEG ratio of 1.5, suggesting a disparity in expected earnings growth [8] Group 5: Industry Context - The Oil and Gas - Production Pipeline - MLB industry, to which Oneok belongs, has a Zacks Industry Rank of 203, placing it in the bottom 18% of over 250 industries [8] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [9]

Core Insights - ONEOK reported full-year earnings for 2025, revealing a surprising weakness in its performance [1] - Adjusted EBITDA for 2025 was $8,020 million, which includes transaction costs of $65 million, or $8,085 million without these costs [1] - The guidance for 2026 was also below market expectations, indicating potential challenges ahead for the company [1] Financial Performance - The adjusted EBITDA figure of $8,020 million for 2025 reflects a significant aspect of the company's financial health [1] - The inclusion of transaction costs in the EBITDA calculation highlights the impact of operational expenses on profitability [1] Market Reaction - The market's reaction to the earnings report was one of surprise due to the unexpected weakness in performance [1] - This reaction may indicate a reassessment of the company's future prospects and investor sentiment [1]

Core Viewpoint - ONEOK, Inc. is recognized as a promising investment opportunity due to its diversified operations and strong financial performance, particularly in the context of increasing gas demand and strategic acquisitions [2][3][4]. Financial Performance - In Q4 2025, ONEOK reported a 12% increase in net income, reaching $3.39 billion, while adjusted EBITDA grew by 18% to $8.02 billion [3]. - The company anticipates a midpoint adjusted EBITDA forecast of $8.1 billion for 2026, supported by higher volumes and additional acquisition-related synergies of $150 million [4]. Strategic Initiatives - The acquisition of Magellan Midstream Partners has generated nearly $500 million in total synergies, with $250 million realized during 2025 [3]. - ONEOK's strategy focuses on scale, integration, and stable fee-based revenue, with approximately 90% of earnings being fee-based, which mitigates exposure to commodity price fluctuations [5]. Market Position - ONEOK operates as a midstream service provider, offering a range of services including gathering, processing, transportation, and storage across various segments [6]. - The company sees long-term growth potential in the Bakken Formation, with around 5,000 wells yet to be drilled in dedicated acreage [5].

Core Viewpoint - ONEOK, Inc. is recognized as one of the best oil and gas dividend stocks to buy currently, despite facing challenges in growth without favorable commodity conditions [1][3]. Company Overview - ONEOK, Inc. is a prominent midstream operator that offers a range of services including gathering, processing, fractionation, transportation, storage, and marine export, utilizing a pipeline network of approximately 60,000 miles [2]. Financial Outlook - Jefferies raised the price target for ONEOK from $80 to $85 while maintaining a 'Hold' rating, highlighting concerns regarding the company's growth potential without commodity tailwinds [3]. - The company targets an adjusted EBITDA midpoint of $8.1 billion for FY 2026, which is slightly higher than the $8.02 billion achieved in the previous year, despite expecting $150 million in new synergies [3]. - ONEOK's forecast for net income in FY 2026 is approximately $3.45 billion, marginally lower than the $3.46 billion reported in 2025 [3]. Market Reaction - Following the Q4 report, ONEOK's stock fell by over 5%, with Jefferies suggesting that this decline has appropriately de-risked the stock [4]. - The analyst indicated that significant outperformance would require strong growth in base Gathering and Processing (G&P) volumes [4].

Industry Overview - The global oil and gas industry is experiencing significant disruptions due to ongoing tensions in the Middle East, particularly with Iran's military responses leading to the suspension of operations at major oil and gas facilities by Gulf producers [1][2] - The Strait of Hormuz, a critical passage for over 20% of global oil and LNG supply, has been closed by Iran, exacerbating supply concerns [1][2] Oil Price Movements - Oil prices have surged to their highest levels in over two years, with Brent crude trading above $93 per barrel, and projections suggest prices could reach $150 per barrel if the conflict persists [2] - The average gas price in the US has also risen to $3.32 per gallon, the highest since 2024, although political leaders express confidence that prices will stabilize post-conflict [3] Dividend Stocks Analysis - The article identifies the best oil and gas dividend stocks, focusing on those with significant hedge fund interest and a minimum annual dividend yield of 2.5% as of March 5, 2026 [5][6] - California Resources Corporation (NYSE:CRC) reported a 25% increase in net production year-over-year, reaching 138,000 barrels of oil equivalent per day, and generated $543 million in free cash flow, allowing for a $430 million increase in its share repurchase program [9][10][11] - Patterson-UTI Energy, Inc. (NASDAQ:PTEN) saw a price target increase from Goldman Sachs, reflecting confidence in its fundamentals despite geopolitical challenges, and reported $416 million in adjusted free cash flow for FY 2025 [12][13][15] - Chord Energy Corporation (NASDAQ:CHRD) received a price target increase from UBS, indicating a potential upside of over 17%, supported by the ongoing geopolitical tensions [16][17][18] - ONEOK, Inc. (NYSE:OKE) faced a downgrade in growth expectations despite a price target increase, with analysts questioning its ability to grow without favorable commodity conditions [19][20][21] - Suncor Energy Inc. (NYSE:SU) reported a nearly 4% increase in production year-over-year and announced a share repurchase plan of C$3.3 billion for 2026, maintaining a robust dividend yield of 3.07% [22][24][25] - HF Sinclair Corporation (NYSE:DINO) is undergoing leadership changes amid concerns regarding its disclosure processes, which may impact investor sentiment [26][27][28] - BP p.l.c. (NYSE:BP) has seen a price target increase due to strong valuation support amid the ongoing conflict, with potential for oil prices to exceed $100 per barrel if the Strait of Hormuz remains closed [29][31][32] - Permian Resources Corporation (NYSE:PR) reported record operational metrics and a 20% increase in adjusted free cash flow, allowing for a 7% increase in its quarterly dividend [33][34][36] - EOG Resources, Inc. (NYSE:EOG) is targeting a free cash flow of approximately $4.5 billion in 2026, benefiting from rising oil prices due to geopolitical tensions [37][39][40]

Core Insights - The article discusses the resilience of midstream energy companies like Enterprise Products Partners (EPD), Williams Companies (WMB), and ONEOK (OKE) in the face of fluctuating oil prices, contrasting them with integrated oil majors like Chevron (CVX) [1] Midstream Companies Overview - **Enterprise Products Partners (EPD)**: - Offers a distribution yield of 5.82% with 27 consecutive years of growth - FY2025 operating cash flow is projected at $8.585 billion and free cash flow (FCF) at $3.006 billion - Anticipates a significant increase in distributable cash flow in 2026 due to reduced capital expenditures [1] - **Williams Companies (WMB)**: - Achieved record adjusted EBITDA of $7.75 billion in FY2025, with a five-year compound annual growth rate (CAGR) of 9% - Increased its dividend by 5% for 2026 to $0.525 per quarter, with a dividend coverage ratio of 2.36x-2.45x [1] - **ONEOK (OKE)**: - Raised its quarterly dividend from $1.03 to $1.07, marking a 4% increase - Approximately 90% of earnings are fee-based, with $475 million in cumulative acquisition synergies expected through year-end 2025 - Reduced long-term debt by approximately $3.1 billion in 2025, enhancing balance sheet flexibility [1] Integrated Oil Major Overview - **Chevron (CVX)**: - Generated $16.6 billion in FY2025 free cash flow but experienced a 23.8% decline in earnings - The annualized dividend stands at $7.12, supported by a 39-year consecutive increase streak - Earnings are closely tied to oil prices, with a need for prices to rise towards $100 to alleviate pressure on earnings [1] Comparative Analysis - Midstream companies (EPD, WMB, OKE) operate on fee-based models, making their dividends more stable regardless of oil price fluctuations - In contrast, Chevron's earnings are more directly affected by oil price movements, making it more vulnerable in a low-price environment [1]