Valued at a market cap of $55.7 billion, ONEOK, Inc. (OKE) is a prominent midstream energy infrastructure company that transports, processes, stores, and distributes natural gas, natural gas liquids (NGLs), refined products, and crude oil. Headquartered in Tulsa, Oklahoma, the company operates one of the largest integrated energy pipeline systems in the United States.
This energy company has considerably underperformed the broader market over the past 52 weeks. Shares of OKE have soared 2.6% over this time frame, while the broader S&P 500 Index ($SPX) has gained 26.5%. However, on a YTD basis, the stock is up 20.8%, compared to SPX’s 8.8% return.
Narrowing the focus, ONEOK has also lagged behind the First Trust Nasdaq Oil & Gas ETF’s (FTXN) 31.1% uptick over the past 52 weeks and 30.1% YTD rally.
On Apr. 28, ONEOK shares popped 2.3% after the company released its FY2026 Q1 earnings. Driven by rising NGL, refined products, and natural gas volumes across its integrated midstream network, net income increased 12% year over year to $776 million. Its adjusted EBITDA climbed 13% to nearly $2 billion, supported by stronger throughput volumes, higher transportation earnings, and improved optimization and marketing activity.
For the current fiscal year, ending in December, analysts expect OKE’s EPS to grow 5.7% year over year to $5.73. The company’s earnings surprise history is solid. It met or surpassed the consensus estimates in each of the last four quarters.
Among the 22 analysts covering the stock, the consensus rating is a "Moderate Buy” which is based on 10 “Strong Buy,” one "Moderate Buy," and 11 “Hold” ratings.
The configuration is bearish than a month ago, with 11 “Strong Buy” suggestions for the stock.
On May 8, JPMorgan analyst Jeremy Tonet reiterated a “Neutral” rating on ONEOK and modestly raised the price target to $92 from $91. The revised target reflects continued confidence in the company’s stable midstream fundamentals and cash flow outlook.
The mean price target of $95.09 represents a 7.1% premium from OKE’s current price levels, while the Street-high price target of $113 suggests an ambitious upside potential of 27.3%.
On the date of publication, Kritika Sarmah 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.
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