ONEOK(OKE) ZACKS·2024-12-05 13:50ONEOK's NGL Projects - ONEOK completed MB-6, a 125,000 bpd NGL fractionator in Mont Belvieu, TX, and fully looped the West Texas NGL Pipeline system, enhancing midstream solutions [1] - MB-6 increases ONEOK's fractionation capacity to over 1 million bpd, reducing reliance on third-party fractionation and improving market demand fulfillment [2] - The West Texas NGL pipeline system's full looping increases capacity to 515,000 bpd, with additional pump stations expected to boost capacity to 740,000 bpd by mid-2025 [2] Global NGL Market Growth - The global NGL market is projected to grow at a CAGR of 5.7% from 2023 to 2032, reaching $32.6 billion by 2032 [3] - Market growth is driven by natural gas production, energy demand, economic growth, technological advancements, and supply-demand dynamics [3] Competitor Analysis - Targa Resources (TRGP) reported Q3 2024 fractionation volumes of 953.8 thousand bpd, a 20% YoY increase from 793.4 thousand bpd [5] - TRGP's long-term earnings growth rate is 40.46%, with a 71.6% YoY increase in 2024 EPS [6] - Enterprise Products (EPD) operates a 50,000-mile pipeline network, with 19 gas processing units, 25 fractionators, and 11 condensate distillation facilities [6] - EPD's long-term earnings growth rate is 7.21%, with a 6.3% YoY increase in 2024 earnings per unit [7] - Energy Transfer (ET) owns 5,700 miles of NGL pipelines with 3 million bpd capacity and exports over 1.1 million bpd, accounting for 20% of the global NGL market [8] - ET's long-term earnings growth rate is 23.24%, with a 21.1% YoY increase in 2024 earnings per unit [9] ONEOK's Stock Performance - ONEOK's shares rose 37.4% over the past six months, outperforming the industry's 24.3% growth [10] - Since June 5, 2024, ONEOK's stock price return was 47.9%, compared to the Oil/Gas Prod Pipeline Mlp Market's 41.7% [11]