ONEOK, Inc., together with its subsidiaries, engages in gathering, processing, storage, and transportation of natural gas in the United States.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$57.46|
|52 Week High||US$23.28|
|52 Week Low||US$57.67|
|1 Month Change||8.50%|
|3 Month Change||1.61%|
|1 Year Change||134.72%|
|3 Year Change||-15.72%|
|5 Year Change||12.80%|
|Change since IPO||1,336.50%|
Recent News & Updates
ONEOK: 7% Yield, Strong Q2 Growth, No K-1
OKE had major growth in Q2 '21 - EBITDA was up 50%, DCF grew 89%, net income rose 155%. OKE yields 7%, with strong 1.48X distribution coverage in Q1-2 '21. Valuations, profitability, and performance vs. the midstream industry, and 2021 Actuals vs. Guidance are discussed in this article. There also are two high-yield options trades with deferred tax cash flow benefits included.
ONEOK: A Reasonable Buy If The Biden Administration Supports It
There has been some debate regarding whether the Biden administration will support LNG and NGL products. EPS trends suggest that there will be sustained growth as long as secular energy trends continue to support renewables. Crude price forecasts suggest that this may be the best chance for the widespread adoption of renewable energy sources.
ONEOK (NYSE:OKE) Has Re-Affirmed Its Dividend Of US$0.94
The board of ONEOK, Inc. ( NYSE:OKE ) has announced that it will pay a dividend of US$0.94 per share on the 16th of...
ONEOK: Another COVID-19 Wave Could See A Dividend Cut
The week has started in the red with markets once again worried about COVID-19 and the possibility of another wave hurting economic activity. Whilst the midstream giant, ONEOK was able to sustain their 7% dividend yield throughout the original wave of 2020, this was due to managerial resolve that still left them risky. Whilst they had a very impressive start to 2021, their dividends still remain burdensomely large and their cash flow performance did not prove resilient when COVID-19 struck during 2020. Since they are massively reducing their capital expenditure, it will dramatically reduce their future earnings growth and thus makes a reduction the only way to remove their dividend burden. If another COVID-19 wave hurts their financial performance, it could easily see management reduce their dividends and thus I am maintaining my neutral rating.
A Look At The Fair Value Of ONEOK, Inc. (NYSE:OKE)
Today we will run through one way of estimating the intrinsic value of ONEOK, Inc. ( NYSE:OKE ) by taking the forecast...
|OKE||US Oil and Gas||US Market|
Return vs Industry: OKE exceeded the US Oil and Gas industry which returned 67.3% over the past year.
Return vs Market: OKE exceeded the US Market which returned 36.2% over the past year.
Stable Share Price: OKE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: OKE's weekly volatility (4%) has been stable over the past year.
About the Company
ONEOK, Inc., together with its subsidiaries, engages in gathering, processing, storage, and transportation of natural gas in the United States. It operates through Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines segments. The company owns natural gas gathering pipelines and processing plants in the Mid-Continent and Rocky Mountain regions.
ONEOK Fundamentals Summary
|OKE fundamental statistics|
Is OKE overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|OKE income statement (TTM)|
|Cost of Revenue||US$7.38b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||3.02|
|Net Profit Margin||11.90%|
How did OKE perform over the long term?See historical performance and comparison
6.5%Current Dividend Yield
Is ONEOK undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: OKE ($57.46) is trading above our estimate of fair value ($57.38)
Significantly Below Fair Value: OKE is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: OKE's PE Ratio (19x) is in line with the US Oil and Gas industry average.
PE vs Market: OKE is poor value based on its PE Ratio (19x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: OKE is poor value based on its PEG Ratio (3.5x)
Price to Book Ratio
PB vs Industry: OKE is overvalued based on its PB Ratio (4.3x) compared to the US Oil and Gas industry average (1.8x).
How is ONEOK forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OKE's forecast earnings growth (5.4% per year) is above the savings rate (2%).
Earnings vs Market: OKE's earnings (5.4% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: OKE's earnings are forecast to grow, but not significantly.
Revenue vs Market: OKE's revenue (2.1% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: OKE's revenue (2.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: OKE's Return on Equity is forecast to be high in 3 years time (28.4%)
How has ONEOK performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OKE has high quality earnings.
Growing Profit Margin: OKE's current net profit margins (11.9%) are higher than last year (7.1%).
Past Earnings Growth Analysis
Earnings Trend: OKE's earnings have grown significantly by 22.3% per year over the past 5 years.
Accelerating Growth: OKE's earnings growth over the past year (117.1%) exceeds its 5-year average (22.3% per year).
Earnings vs Industry: OKE earnings growth over the past year (117.1%) exceeded the Oil and Gas industry -19.4%.
Return on Equity
High ROE: Whilst OKE's Return on Equity (22.82%) is high, this metric is skewed due to their high level of debt.
How is ONEOK's financial position?
Financial Position Analysis
Short Term Liabilities: OKE's short term assets ($2.2B) do not cover its short term liabilities ($2.4B).
Long Term Liabilities: OKE's short term assets ($2.2B) do not cover its long term liabilities ($15.1B).
Debt to Equity History and Analysis
Debt Level: OKE's debt to equity ratio (242.3%) is considered high.
Reducing Debt: OKE's debt to equity ratio has reduced from 268% to 242.3% over the past 5 years.
Debt Coverage: OKE's debt is not well covered by operating cash flow (15.6%).
Interest Coverage: OKE's interest payments on its debt are well covered by EBIT (3.2x coverage).
What is ONEOK current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OKE's dividend (6.51%) is higher than the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: OKE's dividend (6.51%) is in the top 25% of dividend payers in the US market (3.63%)
Stability and Growth of Payments
Stable Dividend: OKE's dividends per share have been stable in the past 10 years.
Growing Dividend: OKE's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (123.7%), OKE's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: OKE's dividends in 3 years are not forecast to be well covered by earnings (99.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Pierce Norton (61 yo)
Mr. Pierce H. Norton II has been President, Chief Executive Officer and Director of ONEOK, Inc. since June 28, 2021. He has been the Chief Executive Officer and President of ONE Gas, Inc. since January 31,...
Experienced Management: OKE's management team is considered experienced (3.7 years average tenure).
Experienced Board: OKE's board of directors are considered experienced (7.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
ONEOK, Inc.'s employee growth, exchange listings and data sources
- Name: ONEOK, Inc.
- Ticker: OKE
- Exchange: NYSE
- Founded: 1906
- Industry: Oil and Gas Storage and Transportation
- Sector: Energy
- Market Cap: US$25.608b
- Shares outstanding: 445.66m
- Website: https://www.oneok.com
Number of Employees
- ONEOK, Inc.
- 100 West Fifth Street
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/23 22:56|
|End of Day Share Price||2021/09/23 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.