company background image
OKE

ONEOKNYSE:OKE Stock Report

Market Cap

US$25.6b

7D

4.2%

1Y

129.8%

Updated

26 Sep, 2021

Data

Company Financials +
OKE fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance5/6
Financial Health2/6
Dividends4/6

OKE Overview

ONEOK, Inc., together with its subsidiaries, engages in gathering, processing, storage, and transportation of natural gas in the United States.

ONEOK Competitors

Kinder Morgan

NYSE:KMI

US$37.5b

Energy Transfer

NYSE:ET

US$25.1b

Cheniere Energy

NYSEAM:LNG

US$24.0b

Cheniere Energy Partners

NYSEAM:CQP

US$20.2b

Price History & Performance

Summary of all time highs, changes and price drops for ONEOK
Historical stock prices
Current Share PriceUS$57.47
52 Week HighUS$24.56
52 Week LowUS$57.74
Beta1.99
1 Month Change6.74%
3 Month Change3.66%
1 Year Change129.79%
3 Year Change-15.22%
5 Year Change11.83%
Change since IPO1,336.75%

Recent News & Updates

Aug 27

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.

Aug 02

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.

Jul 25
ONEOK (NYSE:OKE) Has Re-Affirmed Its Dividend Of US$0.94

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...

Jul 20

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.

Jul 12
A Look At The Fair Value Of ONEOK, Inc. (NYSE:OKE)

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...

Shareholder Returns

OKEUS Oil and GasUS Market
7D4.2%3.9%0.1%
1Y129.8%72.7%35.3%

Return vs Industry: OKE exceeded the US Oil and Gas industry which returned 72.7% over the past year.

Return vs Market: OKE exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is OKE's price volatile compared to industry and market?
OKE volatility
OKE Beta1.99
Industry Beta1.82
Market Beta1

Stable Share Price: OKE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: OKE's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19062,886Pierce Nortonhttps://www.oneok.com

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

How do ONEOK's earnings and revenue compare to its market cap?
OKE fundamental statistics
Market CapUS$25.61b
Earnings (TTM)US$1.35b
Revenue (TTM)US$11.33b

19.0x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OKE income statement (TTM)
RevenueUS$11.33b
Cost of RevenueUS$7.38b
Gross ProfitUS$3.95b
ExpensesUS$2.60b
EarningsUS$1.35b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.02
Gross Margin34.84%
Net Profit Margin11.90%
Debt/Equity Ratio242.3%

How did OKE perform over the long term?

See historical performance and comparison

Dividends

6.5%

Current Dividend Yield

124%

Payout Ratio

Valuation

Is ONEOK undervalued compared to its fair value and its price relative to the market?

19.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OKE ($57.47) is trading above our estimate of fair value ($56.81)

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 (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: OKE is poor value based on its PEG Ratio (3.4x)


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 (1.9x).


Future Growth

How is ONEOK forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OKE's forecast earnings growth (5.7% per year) is above the savings rate (2%).

Earnings vs Market: OKE's earnings (5.7% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: OKE's earnings are forecast to grow, but not significantly.

Revenue vs Market: OKE's revenue (2.2% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: OKE's revenue (2.2% 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%)


Past Performance

How has ONEOK performed over the past 5 years?

22.3%

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.


Financial Health

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).


Balance Sheet


Dividend

What is ONEOK current dividend yield, its reliability and sustainability?

6.51%

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 (1.33%).

High Dividend: OKE's dividend (6.51%) is in the top 25% of dividend payers in the US market (3.6%)


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 (98.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Pierce Norton (61 yo)

0.25

Tenure

US$2,713,189

Compensation

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,...


Leadership Team

Experienced Management: OKE's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: OKE's board of directors are considered experienced (7.7 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ONEOK, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: ONEOK, Inc.
  • Ticker: OKE
  • Exchange: NYSE
  • Founded: 1906
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: US$25.612b
  • Shares outstanding: 445.66m
  • Website: https://www.oneok.com

Number of Employees


Location

  • ONEOK, Inc.
  • 100 West Fifth Street
  • Tulsa
  • Oklahoma
  • 74103
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:16
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.