ONEOK, Inc. (OKE), headquartered in Tulsa, Oklahoma, engages in the gathering, processing, fractionation, storage, transportation, and marketing of natural gas, natural gas liquids (NGL), refined products, and crude oil assets. Valued at $47.95 billion by market cap, the company connects key energy supply and demand centers through its more than 50,000-mile pipeline network, which includes one of the nation’s premier NGL systems and longest refined products system. It also owns strategic gathering, processing, fractionation, and storage assets. The leading energy infrastructure company is expected to announce its fiscal second-quarter earnings for 2024 after the market closes on Monday, Aug. 5.
Ahead of the event, analysts expect OKE to report a profit of $1.18 per share on a diluted basis, up 13.5% from $1.04 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing on two other occasions. During the previous quarter, OKE authorized a $2 billion share repurchase program.
For fiscal 2024, analysts expect OKE to report EPS of $5.01, down 8.6% from $5.48 in fiscal 2023.
OKE stock has outperformed the S&P 500’s ($SPX) 19.2% gains over the past 52 weeks, with shares up 22.2% during this period. Similarly, it outshined the S&P 500 Energy Sector SPDR’s (XLE) 4.7% gains over the same time frame.
On Apr. 30, OKE reported its Q1 results. Its EPS of $1.09 fell short of the consensus estimates of $1.13. The company’s revenue and net income stood at $4.78 billion and $639 million, respectively. For the full-year 2024, OKE increased its EPS to a midpoint of $4.92, and adjusted EBITDA increased to a range of $6.03 billion to $6.33 billion, versus the previous guidance of between $5.9 billion and $6.3 billion.
Similarly, net income guidance was raised to a range of $2.73 billion to $3.03 billion, compared to the previously announced range of $2.61 billion to $3.01 billion. OKE shares closed down more than 2% on the day the results were released but have been on an uptrend since then.
Analysts’ consensus opinion on OKE stock is bullish, with a “Moderate Buy” rating overall. Out of 18 analysts covering the stock, nine advise a “Strong Buy” rating, one has a “Moderate Buy” rating, and eight recommend a “Hold.” The average analyst price target for OKE is $85.31, indicating a 3.8% potential upside from the current levels.
On the date of publication, Dipanjan Banchur 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.
