ONEOK, Inc. (OKE)Company Overview
ONEOK, Inc. is one of the largest U.S. operators of midstream energy infrastructure, with assets spanning natural gas gathering, transportation, processing, and storage, as well as oil and petroleum product pipelines and storage. Founded in 1906, the company is headquartered in Tulsa, Oklahoma, and derives 100% of its revenue from the U.S. market.
Key Investment Drivers
1. Seasonal Strength in Natural Gas Demand
Natural gas and condensate sales accounted for roughly 86% of ONEOK’s revenue in the first half of 2025. With the onset of the heating season, demand and pricing are expected to firm.
The U.S. Department of Energy projects gas consumption will increase 16% month-overmonth in November and another 16.6% in December.
LNG exports are also forecast to rise by 2.5% in November and 7.1% in December.
We estimate U.S. natural gas prices could climb to around $4 per MMBtu in November (a ~30% increase from current levels), which would be a clear positive catalyst for OKE shares.
2. Attractive Dividend Profile
Management maintained the quarterly dividend at $1.03 per share in Q2 2025, translating to a yield of ~5.7% at current prices.
A likely Fed rate cut in 2025–2026 should increase the relative appeal of high-yield equities while also easing ONEOK’s sizable interest expense burden. As of Q2 2025, total debt stood at $32.5 billion.
Valuation & Recommendation
Target price for OKE shares – $81.7, representing 12.5% upside. Recommendation – Buy. We recommend setting a stop-loss at $66.7 per share.
