Oneok’s first-quarter results were solid, in our view. We expect to increase our fair value estimate to $73 from $70 per share, as we incorporate slightly higher volumes into our model. Our narrow moat rating remains unchanged. Oneok boosted 2024 EBITDA guidance $75 million to a midpoint of $6.2 billion, slightly above our $6.1 billion forecast.
Oneok's NGL gathering system is connected to 90% of the processing plants in the midcontinent.
As ethane economics improve and less ethane is rejected, producers could seek to renegotiate Oneok's fee-based G&P contracts to be commodity-based, capturing a portion of the earnings uplift.
|
Metric
|
OKE
|
MPLX
|
PAGP
|
|---|---|---|---|
Price/Earnings (Normalized) | 16.68 | 10.89 | 16.53 |
Price/Book Value | 2.73 | 3.27 | 2.26 |
Price/Sales | 2.23 | 3.98 | 0.07 |
Price/Cash Flow | 10.19 | 7.83 | 1.37 |
|
Metric
|
OKE
|
MPLX
|
PAGP
|
|---|---|---|---|
Quick Ratio | 0.42 | 0.65 | 0.84 |
Current Ratio | 0.70 | 0.72 | 0.98 |
Interest Coverage | 3.97 | 5.45 | 5.18 |
|
Metric
|
OKE
|
MPLX
|
PAGP
|
|---|---|---|---|
Return on Assets (Normalized) | 6.52% | 11.19% | 4.49% |
Return on Equity (Normalized) | 18.57% | 54.71% | 83.60% |
Return on Invested Capital (Normalized) | 10.03% | 14.35% | 7.05% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
ENB
| Enbridge Inc | Qsmzlkf | Jczxjf | $75.6 Bil | |
EPD
| Enterprise Products Partners LP | Qwscmsfy | Ytcm | $60.2 Bil | |
ET
| Energy Transfer LP | Lstq | Bdfnp | $52.1 Bil | |
WMB
| Williams Companies Inc | Cqgknqzc | Wftkzd | $46.2 Bil | |
MPLX
| MPLX LP Partnership Units | Njwjlsyv | Dglfmf | $42.3 Bil | |
KMI
| Kinder Morgan Inc Class P | Dfcfgkb | Hwxlrbx | $40.5 Bil | |
TRP
| TC Energy Corp | Kmnsfwl | Rytzy | $37.0 Bil | |
LNG
| Cheniere Energy Inc | Khxnybt | Stpyf | $36.2 Bil | |
TRGP
| Targa Resources Corp | Ldyntqhkz | Zpds | $25.0 Bil |
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