Did ONEOK's (OKE) Revenue Miss at Barclays Conference Alter Its Growth Story?

• Earlier this month, ONEOK presented at the Barclays 39th Annual CEO Energy-Power Conference in New York and also hosted a special call to discuss its latest earnings and outlook.
• Although ONEOK announced significant year-over-year growth in both earnings and revenue, analysts highlighted that revenues came in below consensus expectations, which has sparked mixed sentiment around the company's near-term trajectory.
• We'll review how the recent revenue miss, despite strong growth, influences ONEOK's investment narrative and analyst outlooks.

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ONEOK Investment Narrative Recap

To be a shareholder in ONEOK, you have to believe in the enduring growth of US natural gas and NGL demand, as well as successful execution on acquisition synergies and capacity expansion. The recent revenue miss creates short-term uncertainty, but unless commodity price spreads remain depressed or integration challenges escalate, the company’s most important catalysts, volume growth and operating leverage, are still in place. The largest risk at this moment remains ongoing sensitivity to commodity price cycles, which could cap near-term earnings growth if volatility persists.

The recently announced Eiger Express Pipeline project, connecting key Permian production to Texas markets, is especially relevant as it highlights management's continuing focus on expanding fee-based transport volumes. While this collaboration positions ONEOK for rising throughput as shale production grows, it also reinforces the importance of volume momentum as a near-term driver while the company manages industry cyclicality and market expectations.

On the other hand, investors need to be aware that muted commodity spreads and revenue volatility could present challenges for...

Read the full narrative on ONEOK (it's free!)

ONEOK's outlook anticipates $34.0 billion in revenue and $4.2 billion in earnings by 2028. This is based on a projected annual revenue growth rate of 6.7% and a $1.1 billion increase in earnings from the current $3.1 billion.

Uncover how ONEOK's forecasts yield a $96.11 fair value, a 32% upside to its current price.

Exploring Other Perspectives

Private investor fair value estimates from the Simply Wall St Community range from US$56.66 to US$147.15 across 7 submissions. While enthusiasm persists for US energy growth, ongoing earnings sensitivity to commodity spreads remains a focus for both analysts and retail participants seeking clarity on the company’s outlook.

Explore 7 other fair value estimates on ONEOK - why the stock might be worth 22% less than the current price!

Build Your Own ONEOK Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ONEOK research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free ONEOK research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ONEOK's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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