Oneok Inc. (OKE) ended the recent trading session at $81.32, demonstrating a +1.41% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.8%. On the other hand, the Dow registered a gain of 0.94%, and the technology-centric Nasdaq increased by 0.97%. The natural gas company's shares have seen a decrease of 0.5% over the last month, not keeping up with the Oils-Energy sector's gain of 3.8% and the S&P 500's gain of 5.12%.The investment community will be ...

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Oneok Inc. (OKE), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][5][10]. Brokerage Recommendations - Oneok has an average brokerage recommendation (ABR) of 1.65, indicating a consensus between Strong Buy and Buy, based on recommendations from 17 brokerage firms [2][4]. - Out of the 17 recommendations, 11 are Strong Buy and 1 is Buy, which account for 64.7% and 5.9% of all recommendations, respectively [2]. Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations have limited success in guiding investors towards stocks with the best price increase potential [5]. - Analysts often exhibit a positive bias due to the vested interests of brokerage firms, leading to a disproportionate number of favorable ratings compared to negative ones [6][10]. Zacks Rank as an Alternative - The Zacks Rank is presented as a more reliable indicator of a stock's near-term price performance, based on earnings estimate revisions rather than brokerage recommendations [8][11]. - The Zacks Rank is updated more frequently and reflects the latest earnings estimates, making it a timely tool for predicting future price movements [12]. Current Earnings Estimates for Oneok - The Zacks Consensus Estimate for Oneok's current year earnings remains unchanged at $5.23, suggesting stability in analysts' views regarding the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, Oneok holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [14].

ONEOK (NYSE: OKE ) is a fast-growing midstream enterprise with a focus on natural gas and the company has long term potential for distributable cash flow and dividend growth amid increasing investments in the AI and Data Center industries. ONEOK also acquiredAnalyst’s Disclosure:I/we have a beneficial long position in the shares of OKE, EPD, ENB, KMI, MPLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensa ...

Group 1: Options Trading Insights - The recommended September call option has a leverage ratio of 7.5 and will double on a 13.6% gain in the underlying security [1] - A front-month gamma-weighted Schaeffer's open interest ratio (SOIR) above 1.00 may indicate an immediate pending move [1] - The Schaeffer's Volatility Index (SVI) is in the 19th percentile of its annual range, suggesting options are a preferred trading route [1] Group 2: ONEOK, Inc. Stock Analysis - ONEOK, Inc. (NYSE:OKE) is attempting to establish a low at its 2020 highs, 2024 summer lows, and spring 2025 lows [2] - The shares are maintaining open interest (OI) balance at the 80-strike, with a previous low found at the peak put 75 strike in April [2] Group 3: Options Trading Services - Subscribers to Schaeffer's Weekend Trader received commentary on OKE along with detailed options trade recommendations [3] - OKE options are currently affordably priced, indicating potential for movement [3] - The service aims to provide structured plans with clear entry and exit points for traders [4]

Core Insights - ONEOK Inc. (OKE) is benefiting from increased fee-based earnings and capital expenditures aimed at strengthening its position in high-production regions [1][8] - The company is exposed to competitive risks in its pipeline business [1][6] Positive Drivers for OKE - ONEOK is expected to gain from long-term fee-based commitments across its three segments: Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines and Refined Products and Crude [2] - More than 88% of its 2024 earnings are fee-based, with over 90% of 2025 revenues anticipated to come from fees [2][8] - The annual growth rate for natural gas liquid volumes from the Rocky Mountain region has exceeded 20%, while natural gas processing volumes have grown at 10% over the past five years [2] Capital Expenditures and Expansion - The company is investing in organic-growth projects to expand its services for crude-oil and natural-gas producers, with capital expenditures expected to be between $2.8 billion and $3.2 billion in 2025 [3] - In February 2025, ONEOK and MPLX LP formed joint ventures to construct a new 400,000 barrel-per-day liquefied petroleum gas export terminal in Texas City, along with a new pipeline connecting to its Mont Belvieu storage facility [4] Headwinds for OKE - ONEOK does not own all the land for its pipelines, which poses risks of incurring higher costs and potential operational impacts if land rights are not renewed [5] - The natural gas and natural gas liquid pipeline industries are highly competitive, with many energy companies forming master limited partnerships to launch pipeline services [6] Stock Performance - Over the past year, OKE shares have increased by 6.1%, compared to the industry's growth of 14.1% [7]

Company Overview - ONEOK (NYSE: OKE) is a leading player in the midstream sector, with a significant history dating back to its origins as the Oklahoma Natural Gas Company [1] - The company's infrastructure has expanded considerably, indicating strong growth and operational capabilities in the energy sector [1] Investment Focus - The analysis emphasizes a preference for undervalued and overlooked companies or industries that possess strong fundamentals and robust cash flows, particularly in sectors like Oil & Gas and consumer goods [1] - The investment strategy is centered on long-term value investing, while also exploring potential deal arbitrage opportunities in various sectors [1] Market Sentiment - The article highlights a specific interest in companies that have been "unloved for unjustified reasons," suggesting a potential for substantial returns in the future [1] - Energy Transfer is cited as an example of a company that was initially avoided by investors but has since shown promise [1]

Core Viewpoint - The article discusses the author's journey in dividend growth investing and the establishment of a blog that documents this journey, highlighting the importance of community and personal experience in investment strategies [1]. Group 1 - The author has been investing since September 2017 and has a long-standing interest in dividend investing since 2009 [1]. - The blog "Kody's Dividends" serves as a platform for documenting the journey towards financial independence through dividend growth investing [1]. - The author expresses gratitude for the blog's role in connecting with the Seeking Alpha community as an analyst [1]. Group 2 - The author holds long positions in the shares of OKE and MPLX, indicating a personal investment strategy focused on these companies [1]. - The article emphasizes that the author's opinions are personal and not influenced by compensation from any company mentioned [1].

Core Insights - ONEOK, Inc. announced the acquisition of the remaining 49.9% interest in Delaware G&P LLC for $940 million, consisting of $530 million in cash and $410 million in common stock [1][11] - The Delaware Basin joint venture has a processing capacity of over 700 million cubic feet per day and is located in West Texas and New Mexico [2][11] - Following the acquisition, ONEOK will become the sole owner of the Delaware Basin JV by May 28, 2025 [2][11] Company Expansion and Strategy - ONEOK is actively expanding its operations through strategic acquisitions, which enhance geographic diversification, infrastructure integration, and fee-based earnings [3][11] - Recent acquisitions include Magellan Midstream Partners, Easton Energy's NGL pipelines, Medallion Midstream, and EnLink Midstream, which collectively strengthen ONEOK's position in the oil and natural gas pipeline sector [4][5][11] - These acquisitions are expected to generate significant cost savings and synergies, thereby improving profitability [6] Industry Context - Other companies in the oil and gas sector, such as Energy Transfer and TotalEnergies, are also pursuing growth through mergers and acquisitions, indicating a trend in the industry [7][9] - Energy Transfer's acquisition of WTG Midstream Holdings LLC expanded its gas gathering pipeline network by 6,000 miles [8] - Devon Energy's acquisition of Grayson Mill Energy significantly increased its net acre position and production volume in the Williston Basin [12] Stock Performance - ONEOK's stock has experienced a decline of 9.4% over the past three months, compared to a 5.7% decline in the industry [14]

Acquisition Advances Permian Basin Growth Strategy TULSA, Okla., June 3, 2025 /PRNewswire/ -- ONEOK, Inc. (NYSE: OKE) today announced the acquisition of the remaining 49.9% interest in Delaware G&P LLC (Delaware Basin JV) from NGP XI Midstream Holdings, L.L.C. for $940 million, consisting of $530 million in cash and $410 million in ONEOK common stock.  Delaware Basin JV owns natural gas gathering and processing facilities in the Delaware Basin in West Texas and New Mexico, with a total processing capacity o ...

Summary of ONEOK (OKE) Fireside Chat - May 28, 2025 Company Overview - **Company**: ONEOK (OKE) - **Industry**: Energy and Natural Gas Key Points and Arguments Commodity Price Impact - ONEOK is less affected by commodity price fluctuations compared to other companies, which can see cash flow changes of up to 40% with a $1 change in gas or a $10 change in oil prices [4][6] - Recent oil price declines have not led to a decrease in volume for ONEOK, indicating stability in their operations [4][6] Natural Gas Outlook - Natural gas production in the U.S. has increased from approximately 20 trillion cubic feet (Tcf) in 2000-2007 to around 42 Tcf in 2024, driven by coal-to-gas conversions and LNG exports [8][9] - Current LNG export facilities are projected to increase capacity to 10 billion cubic feet (Bcf) per day, with potential future expansions [10] - The demand for natural gas is expected to grow due to factors such as artificial intelligence data centers and ongoing coal plant conversions [11] Natural Gas Liquids (NGLs) and Petrochemicals - NGLs are primarily byproducts of crude oil and natural gas production, and their value is dependent on transportation to markets where they can be sold at higher prices [12][13] - The U.S. is expected to remain a significant supplier of ethane to petrochemical companies, with a notable portion being exported to China [18][20] Regulatory Environment - The current administration is actively seeking specific feedback from the industry to improve regulatory processes, which is seen as a positive change [22] - Tariff policies are viewed as volatile, but there is a growing understanding that they may not be permanent [23][24] Strategic Focus and Growth - ONEOK's strategy emphasizes brownfield expansions to reduce capital costs and enhance integration within their existing systems [26][27] - The company has divested non-integrated assets to focus on core business areas, which has allowed for better capital allocation [28] Financial Strategy - ONEOK aims for a balanced capital allocation strategy, prioritizing organic growth projects while maintaining a strong dividend policy [75][76] - The company targets a debt-to-EBITDA ratio of around 3.5 times, with plans for stock buybacks if excess cash is generated [78][79] Storage and Volatility Management - Storage capacity is seen as a critical component for managing the volatility of natural gas pricing, especially with increasing LNG exports [37][44] - ONEOK is expanding its storage capabilities, which are expected to provide opportunities in a volatile market [47][59] Customer Diversification - The company is shifting from a supply-push model to a demand-pull model, diversifying its customer base and reducing reliance on specific markets [51][52] Long-term Outlook - The Bakken region is expected to sustain production levels for decades, supported by advancements in drilling technology [54] - ONEOK anticipates continued growth in its core business, driven by synergies from recent acquisitions and ongoing demand for natural gas and NGLs [83][84] Additional Important Insights - The integration of various assets is a key focus for ONEOK, as it allows for better control over revenue streams and operational efficiencies [91][94] - The company is positioned well in the LNG market, with the U.S. being a significant player in global exports, particularly to Asia [71][72] This summary captures the essential insights from the ONEOK Fireside Chat, highlighting the company's strategic focus, market outlook, and financial strategies.