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ONEOK Inc OKE

Morningstar Rating
$71.69 −0.30 (0.42%)
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Company Report

Oneok Starts on the Integration Process for Magellan

Oneok brings together high-quality assets, some of the strongest near- to medium-term growth prospects in our coverage as Rockies volumes continue their ongoing rebound, a C-Corporation structure, and a well-respected management team in a compelling package. About 90% of the firm's earnings are fee-based, 80%-90% of its customers are investment-grade, and the firm hedges its limited commodity price exposure. The addition of Magellan's wide-moat refined product assets strengthens the business and opens up new investment opportunities by bundling different products across Oneok assets as well as batching, blending, and other storage opportunities.

Price vs Fair Value

OKE is trading at a 16% premium.
Price
$71.99
Fair Value
$12.00
Uncertainty
Medium
1-Star Price
$71.40
5-Star Price
$57.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Oneok's NGL gathering system is connected to 90% of the processing plants in the midcontinent.

Bears

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.

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News

Trading Information

Previous Close Price
$71.99
Day Range
$71.5172.35
52-Week Range
$55.9172.51
Bid/Ask
$71.35 / $71.96
Market Cap
$41.76 Bil
Volume/Avg
2.8 Mil / 3.6 Mil

Key Statistics

Price/Earnings (Normalized)
12.79
Price/Sales
1.78
Dividend Yield (Trailing)
5.43%
Dividend Yield (Forward)
5.57%
Total Yield
5.43%

Company Profile

Oneok provides natural gas gathering, processing, storage, and transportation as well as natural gas liquids transportation and fractionation. It owns extensive assets in the midcontinent, Permian, and Rocky Mountain regions.
Sector
Energy
Industry
Oil & Gas Midstream
Stock Style Box
Mid Core
Total Number of Employees
2,966

Competitors

Valuation

Metric
OKE
EPD
MPLX
Price/Earnings (Normalized)
12.7910.7210.89
Price/Book Value
2.472.143.33
Price/Sales
1.781.183.66
Price/Cash Flow
8.457.327.08
Price/Earnings
OKE
EPD
MPLX

Financial Strength

Metric
OKE
EPD
MPLX
Quick Ratio
0.560.571.81
Current Ratio
0.970.921.96
Interest Coverage
5.425.435.11
Quick Ratio
OKE
EPD
MPLX

Profitability

Metric
OKE
EPD
MPLX
Return on Assets (Normalized)
9.05%8.22%10.20%
Return on Equity (Normalized)
29.41%20.96%75.89%
Return on Invested Capital (Normalized)
13.05%12.04%13.27%
Return on Assets
OKE
EPD
MPLX
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Oil & Gas Midstream Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
ENB
Enbridge IncBxjtc$73.3 Bil
EPD
Enterprise Products Partners LPHypfd$59.2 Bil
ET
Energy Transfer LPQmcr$49.0 Bil
WMB
Williams Companies IncWkpcx$41.7 Bil
TRP
TC Energy CorpNscrxsh$41.1 Bil
MPLX
MPLX LP Partnership UnitsBbpsxd$39.1 Bil
LNG
Cheniere Energy IncYrjn$38.2 Bil
KMI
Kinder Morgan Inc Class PYxjqwn$38.0 Bil
CQP
Cheniere Energy Partners LPMcrbj$25.2 Bil

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