ONEOK (OKE): Evaluating Valuation After Strong Results, Project Growth, and Acquisition Synergies

ONEOK recently delivered quarterly results that exceeded expectations, supported by stable operations, new projects coming online, and strong execution on acquisitions. While management has taken a cautious stance on 2026, investors are watching how the company’s expanding cash flow story plays out.

See our latest analysis for ONEOK.

ONEOK’s share price has slipped around 31% year-to-date, reflecting a shift in investor sentiment as the company moderates its outlook for 2026 amidst commodity price pressures. Despite the recent pullback, ONEOK still boasts a strong five-year total shareholder return of 163%. Solid progress on acquisitions and new projects suggests long-term growth momentum could build from here.

If strong execution and smart moves catch your interest, now is the perfect time to broaden your search and discover fast growing stocks with high insider ownership

With ONEOK’s shares trading below analyst price targets and fundamentals remaining resilient, investors must ask whether the current discount points to untapped upside or if the market is already anticipating the company’s next phase of growth.

Most Popular Narrative: 21% Undervalued

ONEOK's fair value, according to the most closely followed narrative, comes in significantly above the recent closing price. This places the spotlight on how analysts see the company's earnings trajectory and market position evolving from here.

Persistent growth in global demand for U.S. natural gas and NGLs, driven by increasing international energy needs and continued coal-to-gas switching, supports long-term volume throughput and higher utilization rates across ONEOK's midstream and export infrastructure. This directly underpins future revenue and EBITDA growth. Ongoing expansions and capital investments in key areas like the Permian and Delaware Basins (for example, new processing plants and pipeline connections) position ONEOK to capture incremental fee-based volumes and benefit from robust U.S. shale production. This can lead to higher top-line growth and enhanced earnings stability.

Read the complete narrative.

Curious what bold projections underpin that bullish fair value? Analysts are betting on a combination of surging demand, margin expansion, and a valuation multiple that raises eyebrows. Want to see which assumptions are driving this narrative? Unlock the full financial story and the real numbers fueling this stock’s upside case.

Result: Fair Value of $89.32 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, earnings remain sensitive to commodity price swings. Any delays in synergy realization from recent acquisitions could weigh on ONEOK’s growth outlook.

Find out about the key risks to this ONEOK narrative.

Another View: Market Ratios Send Mixed Signals

Looking at the numbers through the lens of valuation ratios tells a more complicated story. ONEOK’s price-to-earnings ratio sits at 13.3x, which is slightly above the industry average of 13.1x but well below the average among its peers at 14.9x. Notably, this still leaves the stock trading at a large discount to its fair ratio of 18.7x. This may suggest the potential for a shift if sentiment changes or fundamentals improve. Are investors overlooking a looming opportunity, or is there more risk in these numbers than meets the eye?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own ONEOK Narrative

If these perspectives are not in line with your own, or you want to dig into the numbers and craft a unique story, you can easily build your personal take in under three minutes. Do it your way

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.

Looking for More Smart Investment Moves?

Don’t miss the chance to uncover companies and themes that could shape your next winning portfolio. The right opportunities are out there. Let Simply Wall Street’s screens point you straight to them.

• Unlock dependable portfolio income by checking out high-yield opportunities with these 15 dividend stocks with yields > 3% offering yields above 3% and robust fundamentals.
• Tap into the future with these 30 healthcare AI stocks, featuring companies at the intersection of AI innovation and healthcare breakthroughs, leading advancements in medical technology.
• Catch up on tomorrow’s financial stars by scanning these 81 cryptocurrency and blockchain stocks, where blockchain pioneers and cryptocurrency players are rewriting the rules of digital finance.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com