ONEOK, Inc. (OKE), based in Tulsa, Oklahoma, is a prominent midstream energy company focused on natural gas and natural gas liquids. It plays a vital role in collecting raw natural gas, processing it to separate valuable liquids, and then transporting these products through an extensive network of pipelines.
Operating in major U.S. energy regions, ONEOK links producers to key markets, delivering energy resources to utilities, refiners, and exporters through multiple business segments, including its refined products operations. The company has a market capitalization of $48.04 billion, which classifies it as a “large-cap” stock.
The stock had reached a 52-week low of $64.02 in November, but is up 19.2% from that level. While ONEOK’s stock has been under some pressure, it has gained 5.1% over the past three months, outperforming the USCF Midstream Energy Income Fund’s (UMI) 2.3% gains over the same period.
Over the longer term, this outperformance fades significantly. Over the past 52 weeks, ONEOK’s stock has been down by 30.7%, while it has declined 6% over the past six months. On the other hand, the Midstream Energy Income ETF has dropped 2.1% over the past 52 weeks, but gained 1.7% over the past six months. ONEOK’s stock has been trading below its 200-day moving average since early April, but has been trading higher than its 50-day moving average since late November.
On Oct. 28, ONEOK reported its third-quarter results for fiscal 2025. The company reported a 17% increase in NGL raw feed throughput volumes and a 3% increase in the natural gas volumes processed in the Rocky Mountain region. Its operating income increased by 38.1% year-over-year (YOY) to $1.56 billion. Its EPS grew by 26.3% annually to $1.49, higher than the $1.46 that Wall Street analysts had expected. Despite this, the stock dropped 2.8% intraday on Oct. 29.
ONEOK also pointed out its plans to construct a 300 million cubic feet per day (MMcf/d) plant in the Permian Basin, called the Bighorn natural gas processing plant, which is expected to be completed by mid-2027. The company also entered into a joint venture agreement to construct the Eiger Express Pipeline, which is a 450-mile natural gas pipeline from the Permian Basin to Katy, Texas.
We compare ONEOK’s performance with that of another oil and gas midstream company, MPLX LP (MPLX), which has gained 12.4% over the past 52 weeks and 8.9% over the past six months. Therefore, ONEOK has been the clear underperformer over these periods.
Wall Street analysts are moderately bullish on ONEOK’s stock. The stock has a consensus rating of “Moderate Buy” from the 19 analysts covering it. The mean price target of $88.16 indicates a 15.5% upside compared to current levels. The Street-high price target of $114 indicates a 49.3% upside.
On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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