ONEOK Financial Results Should Improve In The Winter Season

Oct. 31, 2022 4:07 AM ETONEOK, Inc. (OKE) StockOKE
SM Investor
2.86K Followers

Summary

  • Due to higher NGL raw feed throughput volumes in the second half of 2022, ONEOK NGL segment's adjusted EBITDA will increase.
  • Due to increasing natural gas consumption and dry natural gas production, OKE natural gas G&P segment’s adjusted EBITDA in 2H 2022 and 1H 2023 will improve.
  • U.S. natural consumption is expected to increase to 90.20 Bcf/d in 4Q 2022 and 102.96 Bcd/d in 1Q 2023.
  • OKE’s current margin ratios indicate the company’s moderate capability to convert its revenues to profits. However, the company’s margin ratios will improve due to better results in 2H 2022.

Modern natural gas processing plant

CreativeNature_nl

ONEOK's (NYSE:OKE) financial results in the second quarter of 2022 were not attractive. However, due to increasing NGL and natural gas consumption in the second half of 2022 and 1Q 2023, I expect OKE's adjusted EBITDA to improve significantly. The stock price

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SM Investor focuses on medium to long-term investments, analyzing companies' financial metrics such as cash flow, growth, and valuation. As financial analysts with real market education and experience, we cover diversified portfolios including growth and value equities, and dividend stocks (including REITs and RICs). Our approach involves using diversified value investing strategies to identify profitable companies with strong financials and low risks at bargain prices.SM Investor collaborates with Morteza Moradi, who holds a Master's degree in Economics and has more than 10 years of experience writing data-driven analytical and investing content.

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