Group 1 - ONEOK, Inc. is a midstream energy company with a dividend yield close to 6% [1] - The company's shares have recently fallen substantially, making the stock cheaper [1] - The focus of Cash Flow Club is on businesses with strong cash generation and significant durability [1] Group 2 - The investment strategy emphasizes buying companies at the right time for high rewards [1] - The community offers access to a leader's personal income portfolio targeting yields of 6% or more [1] - Coverage includes energy midstream, commercial mREITs, BDCs, and shipping sectors [1]

Company Overview - ONEOK is a large midstream C-Corp with a valuation exceeding $45 billion [2] Performance Analysis - The company has underperformed the market by double digits since the last analysis, indicating a potential for further decline [2] Investment Strategy - The Value Portfolio focuses on building retirement portfolios through a fact-based research strategy, which includes thorough analysis of 10Ks, analyst commentary, market reports, and investor presentations [2]

Samuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering from Texas A&M with a focus on applied mathematics and machine learning. Perspective: "Do not store up f ...

Group 1 - The focus on business fundamentals and data is essential for investors, alongside the understanding of human psychology in investment decisions [1] Group 2 - The contributor has been involved in dividend investing since 2009 and has been documenting their journey towards financial independence through dividend growth investing since 2018 [2] - The blog serves as a platform for sharing insights on dividend growth stocks and occasional growth stocks, contributing to the investment community [2]

Group 1 - Oneok Inc. reported $7.89 billion in revenue for Q2 2025, a year-over-year increase of 61.2%, with EPS of $1.34 compared to $1.33 a year ago [1] - The reported revenue was below the Zacks Consensus Estimate of $8.56 billion, resulting in a surprise of -7.91%, while the EPS met the consensus estimate [1] - Over the past month, Oneok's shares returned -6.7%, contrasting with the Zacks S&P 500 composite's +1.9% change, and the stock holds a Zacks Rank 3 (Hold) [3] Group 2 - Raw feed throughput for Natural Gas Liquids was 1,527.00 MBBL/d, below the average estimate of 1,702.67 MBBL/d [4] - Revenues from Natural Gas Gathering and Processing reached $1.85 billion, significantly exceeding the average estimate of $1.37 billion, representing a year-over-year change of +118.4% [4] - Revenues from Natural Gas Pipelines were $405 million, surpassing the estimated $161.26 million, with a year-over-year increase of +148.5% [4] - Revenues from Refined Products & Crude totaled $2.91 billion, well above the average estimate of $992.77 million [4] - Revenues from Natural Gas Liquids amounted to $3.87 billion, exceeding the average estimate of $3.06 billion, with a year-over-year change of +9.7% [4] - Adjusted EBITDA for Natural Gas Liquids was $673 million, slightly below the estimated $725 million [4] - Adjusted EBITDA for Refined Products & Crude was $557 million, slightly above the average estimate of $549.48 million [4] - Adjusted EBITDA for Natural Gas Pipelines reached $188 million, exceeding the average estimate of $145.59 million [4] - Adjusted EBITDA for Natural Gas Gathering and Processing was $540 million, in line with the average estimate of $538.82 million [4]

Core Viewpoint - ONEOK, Inc. has released its 17th annual Corporate Sustainability Report, highlighting its commitment to energy solutions and sustainability [1]. Company Overview - ONEOK is a leading midstream operator providing essential energy products and services, including gathering, processing, fractionation, transportation, storage, and marine export services [2]. - The company operates an extensive pipeline network of approximately 60,000 miles, transporting natural gas, natural gas liquids (NGLs), refined products, and crude oil to meet both domestic and international energy demands [2]. - As one of the largest integrated energy infrastructure companies in North America, ONEOK plays a significant role in energy security and delivering reliable energy solutions [2]. Additional Information - ONEOK is listed on the S&P 500 and is headquartered in Tulsa, Oklahoma [3]. - For further information, ONEOK maintains an online presence through its website and social media platforms [3].

Core Viewpoint - The energy sector presents high-quality, high-yielding dividend stocks, with Oneok and Williams being notable examples for income-seeking investors [1] Group 1: Oneok - Oneok has a track record of over 25 years of dividend stability and growth, with its payout nearly doubling over the past decade, currently yielding almost 5.5% [3][4] - The company's adjusted EBITDA surged 22% in the second quarter, driven by acquisitions, generating over $2.4 billion in cash in the first half of the year, comfortably covering its dividend payments of less than $1.3 billion [4] - Oneok has several organic expansion projects underway, including relocating a gas processing plant and expanding its pipeline system, which are expected to boost earnings and cash flow in the coming years [5][6] Group 2: Williams - Williams has paid dividends for over 50 years, achieving a 6% compound annual dividend growth over the past five years, with a current yield of nearly 3.5% [8][9] - The company increased its adjusted EBITDA by 8% in the first quarter, with cash flow from operations rising 13%, allowing it to cover its dividend by 2.2 times [9] - Williams is engaged in multiple organic growth projects, including a $1.6 billion power innovation project and expansions of its Transco gas pipeline, which are expected to support future dividend increases [10][11] Group 3: Investment Appeal - Both Oneok and Williams offer high-yielding dividends supported by growing cash flows and strong financial profiles, making them attractive options for investors seeking stable and rising streams of passive income [12]

Core Viewpoint - ONEOK, Inc. has announced a $3.0 billion offering of senior notes, with net proceeds expected to be approximately $2.96 billion, aimed at repaying outstanding commercial paper and senior notes due September 15, 2025, along with general corporate purposes [1]. Group 1: Offering Details - The offering consists of three tranches: $750 million of 7-year senior notes at a coupon of 4.95%, $1.0 billion of 10-year senior notes at a coupon of 5.40%, and $1.25 billion of 30-year senior notes at a coupon of 6.25% [6]. - The expected closing date for the offering is around August 12, 2025, pending customary closing conditions [1]. Group 2: Use of Proceeds - The net proceeds will be used to repay all outstanding commercial paper and senior notes due September 15, 2025, along with any accrued and unpaid interest [1]. - Remaining proceeds may be utilized for general corporate purposes, including the repayment of existing indebtedness [1]. Group 3: Company Overview - ONEOK is a leading midstream operator in North America, providing essential energy products and services, including gathering, processing, transportation, and storage [8]. - The company operates an extensive pipeline network of approximately 60,000 miles, contributing to energy security and meeting both domestic and international energy demands [8].

[Part I. Financial Information](index=6&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited consolidated financial statements detail performance for the three and six months ended June 30, 2025, and 2024 [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Income Statement Highlights (in Millions, except EPS) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $7,887 | $4,894 | $15,930 | $9,675 | | **Operating Income** | $1,431 | $1,229 | $2,651 | $2,293 | | **Net Income Attributable to ONEOK** | $841 | $780 | $1,477 | $1,419 | | **Diluted EPS** | $1.34 | $1.33 | $2.38 | $2.42 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in Millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $3,896 | $4,238 | | **Total Assets** | $64,524 | $64,069 | | **Total Current Liabilities** | $6,646 | $4,719 | | **Total Liabilities** | $42,620 | $41,936 | | **Total Equity** | $21,904 | $22,133 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Cash Flow Highlights (Six Months Ended June 30, in Millions) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Cash provided by operating activities** | $2,429 | $2,026 | | **Cash used in investing activities** | $(1,508) | $(1,334) | | **Cash used in financing activities** | $(1,557) | $(994) | | **Change in cash and cash equivalents** | $(636) | $(302) | | **Cash and cash equivalents at end of period** | $97 | $36 | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - Completed the Delaware Basin JV Acquisition on May 28, 2025, for **$927 million**, making it a wholly owned subsidiary[26](index=26&type=chunk) - Acquired EnLink on January 31, 2025, for **$4.0 billion** in common stock, making it a wholly owned subsidiary[28](index=28&type=chunk) - Entered into **$700 million** of Treasury locks in Q2 2025 to hedge interest rates on future debt[43](index=43&type=chunk) - Amended its credit agreement in February 2025, increasing the revolving credit facility to **$3.5 billion** and extending the term to February 2030[49](index=49&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial results, recent acquisitions, liquidity, and capital resources, highlighting increased earnings driven by strategic growth [Recent Developments](index=25&type=section&id=Recent%20Developments) - ONEOK completed the acquisitions of the remaining interest in Delaware Basin JV and the entirety of EnLink, making both wholly owned subsidiaries[93](index=93&type=chunk)[94](index=94&type=chunk) - Announced joint ventures with MPLX for a new LPG export terminal and pipeline, with an expected ONEOK investment of approximately **$1.0 billion**[95](index=95&type=chunk) - Completed the BridgeTex Additional Interest Acquisition for approximately **$270 million**, increasing ownership to 60%[96](index=96&type=chunk) - The company expects approximately **90%** of its 2025 consolidated earnings to be fee-based, reducing commodity price exposure[99](index=99&type=chunk) [Financial Results and Operating Information](index=28&type=section&id=Financial%20Results%20and%20Operating%20Information) Consolidated Financial Performance (in Millions) | Metric | Q2 2025 | Q2 2024 | Change | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Operating Income** | $1,431 | $1,229 | $202 | $2,651 | $2,293 | $358 | | **Net Income** | $853 | $780 | $73 | $1,544 | $1,419 | $125 | | **Adjusted EBITDA** | $1,981 | $1,624 | $357 | $3,756 | $3,065 | $691 | - The increase in operating income for Q2 and YTD 2025 was primarily driven by contributions from the **EnLink and Medallion acquisitions**[111](index=111&type=chunk)[116](index=116&type=chunk) Segment Adjusted EBITDA Performance (Q2 2025 vs Q2 2024, in Millions) | Segment | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Natural Gas Gathering and Processing | $540 | $371 | $169 | | Natural Gas Liquids | $673 | $635 | $38 | | Natural Gas Pipelines | $188 | $152 | $36 | | Refined Products and Crude | $557 | $467 | $90 | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) - Primary liquidity sources include operating cash flows, a **$3.5 billion** credit agreement, a commercial paper program, and a **$1.0 billion** equity program[139](index=139&type=chunk)[140](index=140&type=chunk) - Total 2025 capital expenditures are expected to be between **$2.8 billion and $3.2 billion**, with $1.4 billion spent in the first half[155](index=155&type=chunk)[156](index=156&type=chunk) - The company maintains **investment-grade credit ratings** with a stable outlook from Moody's, S&P, and Fitch[157](index=157&type=chunk) - Paid a quarterly dividend of **$1.03 per share**, a 4% YoY increase, with operating cash flows exceeding dividends by **$1.1 billion** YTD[160](index=160&type=chunk)[161](index=161&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposure, primarily counterparty credit risk, remains materially unchanged from the 2024 Annual Report - The company reports **no material changes** in its market risk exposures compared to its 2024 Annual Report[182](index=182&type=chunk) - A high percentage of revenues in H1 2025 were from investment-grade or secured counterparties: Natural Gas Gathering and Processing (**~75%**), Natural Gas Pipelines (**~80%**), and Refined Products and Crude (**~85%**)[177](index=177&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirms the effectiveness of disclosure controls and procedures as of June 30, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the reporting period[184](index=184&type=chunk) - No changes occurred during the quarter that materially affected or are likely to materially affect **internal control over financial reporting**[185](index=185&type=chunk) [Part II. Other Information](index=44&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company reports environmental proceedings exceeding a $1 million threshold and refers to its Annual Report for other legal matters - The company uses a **$1 million threshold** for the disclosure of environmental proceedings[186](index=186&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes are reported to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K - There have been **no material changes** to the risk factors set forth in the company's Annual Report[187](index=187&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports the unregistered issuance of common stock as partial consideration for the Delaware Basin JV Acquisition - On May 28, 2025, the company issued **4,852,645 shares** of common stock as part of the consideration for the Delaware Basin JV Acquisition in an unregistered sale[188](index=188&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) A list of exhibits filed with the Quarterly Report on Form 10-Q is provided

Financial Data and Key Metrics Changes - The second quarter adjusted EBITDA increased by 12% compared to the first quarter, totaling $1,980,000,000, with a net income attributable to ONEOK of $841,000,000 or $1.34 per share, representing a more than 30% increase compared to the first quarter [5][8] - The company ended the second quarter with $97,000,000 in cash and no borrowings under its $3,500,000,000 credit facility, having reduced senior notes by nearly $600,000,000 during the quarter [8][9] - The 2025 financial guidance was affirmed, with net income expected to be between $3,100,000,000 and $3,600,000, and adjusted EBITDA projected between $8,000,000,000 and $8,450,000,000 [9][10] Business Line Data and Key Metrics Changes - Natural Gas Liquids (NGL) raw feed throughput volumes increased by 18% compared to the first quarter, with the Rocky Mountain Region achieving record volumes of nearly 470,000 barrels per day [15] - Refined product volumes increased sequentially due to seasonal demand, with diesel and aviation fuel volumes remaining strong [19] - Natural gas processing volumes increased by 9% in the Mid Continent region compared to the first quarter, with the Permian Basin seeing a 4% growth in volumes [21][23] Market Data and Key Metrics Changes - The company noted strong domestic and global demand for U.S. energy, with producers executing their 2025 drilling plans effectively [5][6] - The Permian Basin continues to be a key area for strategic growth, with a new natural gas processing plant announced to enhance operations in the Delaware Basin [6][22] - The overall decrease in crude volumes was attributed to low-margin exchange volumes, while wellhead gathering volumes on Medallion assets increased approximately 20% year over year [20] Company Strategy and Development Direction - ONEOK is focused on high-return organic projects, including pipeline expansions and fractionation facilities, to capture incremental growth across its assets [6][7] - The company is committed to disciplined capital allocation and is actively monitoring market dynamics to support its growth strategy [7][10] - The integration of acquired assets is expected to deliver significant synergies, with approximately $250,000,000 of synergies anticipated in 2025 [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the energy sector despite evolving macroeconomic conditions, with expectations for mid to upper single-digit EBITDA growth in 2026 [10][11] - The company is tempering its 2026 outlook based on current commodity prices, adjusting expectations downward by approximately 2% or $200,000,000 [10] - Management highlighted the importance of safety, integrity, and responsibility in operations, with a commitment to sustainability [25][26] Other Important Information - The company expects to benefit from over $1,300,000,000 in lower cash taxes over the next five years due to recent tax legislation [11] - The new Bighorn plant in the Delaware Basin is expected to have a capacity of 300,000,000 cubic feet per day and is projected to be completed by mid-2027 [22] Q&A Session Summary Question: 2026 outlook and growth drivers - Management acknowledged the change in market conditions since February and noted that the 2026 outlook was adjusted downward by 2% due to tightened spread differentials [29][31] Question: Natural gas business performance - Management indicated ongoing discussions with over 30 potential customers in the AI and data center sectors, with some contracts expected to materialize in the coming years [33][35] Question: Synergy capture and guidance confidence - Management highlighted specific projects, including connections between NGL and refined products assets, as key drivers for synergy capture and guidance confidence [42][44] Question: BridgeTex performance and outlook - Management confirmed that increasing volumes on the BridgeTex pipeline are expected, benefiting from integrated assets and strategic decisions [60][61] Question: LPG export facility and market pricing - Management stated that the location of the Texas City terminal provides a competitive advantage, with rates in line with estimated economics [50][52] Question: Hedging strategy and margins - Management noted that hedging activity is in line with previous years, allowing for opportunistic decisions based on market conditions [97][99] Question: New processing plant economics - Management discussed the integrated value of the new processing plant investment, emphasizing the benefits of having an integrated footprint [101][105]