Denis Shevchuk
ONEOK (NYSE:OKE) reported Q4 earnings on Feb 25th and provided guidance for 2025 and 2026. Now that the dust has settled on their recent acquisition of EnLink Midstream and Medallion, we have a
ONEOK: A Growth Engine In The Midstream Space
Summary
- ONEOK's strategic acquisitions of EnLink Midstream and Medallion have solidified its position in the midstream sector, enhancing its NGL value chain and crude oil infrastructure.
- The company has increased its dividend to $1.03 per share and has begun buying back shares, signaling strong shareholder returns.
- ONEOK's new LPG export terminal project and robust growth projections for 2025-2027 indicate a promising future, with an estimated 12.1% annual return.
- Potential threats include the long-term decline in shale production and the shift to electric vehicles, but current data suggests growing production and stable refined products demand.
I have over 30 years of personal investing experience. My articles cover mostly small to mid sized midstream companies and larger topics like the energy transition and macro questions, like when will we hit peak shale? I consider myself a value investor and recommend companies that produce high returns over a 3-8 year time horizon. As value returns to other sectors, I will broaden my articles to include other names.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of OKE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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