Founded in 1906 and headquartered in Tulsa, Oklahoma, ONEOK, Inc. (OKE) is a leading midstream energy company specializing in the gathering, processing, storage, and transportation of natural gas and natural gas liquids. With a market cap of $57.8 billion, ONEOK plays a critical role in the energy infrastructure, connecting producers with end markets across North America.
Shares of ONEOK have outperformed the broader market over the past 52 weeks. OKE has gained 39% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 20.5%. However, in 2025, the stock is down 2.8%, compared to SPX’s 2.9% rise on a YTD basis.
Zooming in further, ONEOK's stock has also outpaced the Nasdaq Oil & Gas ETF’s (FTXN) 3.6% returns over the past 52 weeks.
Strong fee-based earnings, strategic investments, and successful acquisition synergies drive ONEOK’s outperformance. Following its Q3 earnings release on Oct. 29, ONEOK’s shares rose marginally over the subsequent two trading sessions. The company reported a 19.9% year-over-year revenue growth to $5 billion. EPS climbed 19.2% to $1.18 and fell short of analysts' expectations of $1.23.
ONEOK raised its 2024 financial guidance, citing strong fee-based earnings and synergy gains. Consolidated net income is projected between $2.9 billion and $3.1 billion, with adjusted EBITDA between $6.5 billion and $6.7 billion.
OKE is expected to release its fiscal Q4 earnings results after the market closes on Monday, Feb. 24. For the current fiscal year, ending in December, analysts expect OKE's EPS to decline 7.5% year over year to $5.07. The company's earnings surprise history is disappointing. It missed the consensus estimates in three of the last four quarters while exceeding on just one occasion.
Among the 17 analysts covering the stock, the consensus rating is a “Moderate Buy.” That is based on 11 “Strong Buy” ratings, one “Moderate Buy,” and five “Holds.”
This configuration is more bullish than a month ago when eight analysts recommended a “Strong Buy” rating.
On Feb. 9, Wolfe Research analyst Keith Stanley upgraded Oneok to “Buy” with a price target of $110, implying a potential upside of 12.7% from the current price levels.
OKE’s mean price target of $112.19 represents a premium of 14.9% to current price levels. Meanwhile, the Street-high target of $132 suggests a potential upside of 35.2%.
