What ONEOK (OKE)'s Increased Stake in Eiger Express Pipeline Means for Shareholders

• WhiteWater announced that, together with MPLX LP, ONEOK, Inc., and Enbridge Inc., their Matterhorn joint venture has reached a final investment decision to construct the Eiger Express Pipeline, a 450-mile project designed to transport up to 2.5 billion cubic feet per day of natural gas from the Permian Basin to the Gulf Coast after securing firm transportation commitments with investment-grade shippers.
• This expansion gives ONEOK a 25.5% direct ownership in the Eiger Express Pipeline and enhances its direct exposure to LNG export markets through an established consortium with secured industry support.
• We'll examine how ONEOK's increased ownership and growth in pipeline capacity could shape its long-term prospects and risk outlook.

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ONEOK Investment Narrative Recap

To be a ONEOK shareholder, you need to believe in sustained demand for U.S. natural gas exports and ongoing network expansion in high-growth basins. The Eiger Express Pipeline investment bolsters ONEOK’s capacity and presence in the Permian, but it does not meaningfully shift the company’s near-term earnings sensitivity to commodity price volatility, the key short-term catalyst and risk still center on spreads and demand stability.

ONEOK's recently announced Texas City LPG export terminal project is most relevant here, as it further links the company’s expanding pipeline network to export-driven fee-based revenue. Both initiatives point to increasing connectivity to Gulf Coast and global markets, supporting the long-term catalyst of higher utilization despite near-term uncertainty tied to commodity cycles.

Yet, while new projects offer growth potential, investors should be aware that tightening commodity spreads could...

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

ONEOK's narrative projects $33.2 billion revenue and $4.6 billion earnings by 2028. This requires 5.9% yearly revenue growth and a $1.5 billion earnings increase from $3.1 billion.

Uncover how ONEOK's forecasts yield a $96.44 fair value, a 26% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members set ONEOK’s fair value between US$56.66 and US$149.41 across seven estimates. Revenue growth from US natural gas export demand remains a key factor many consider, but views differ widely so consider exploring more viewpoints.

Explore 7 other fair value estimates on ONEOK - why the stock might be worth as much as 96% more 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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