ONEOK, Inc. (NYSE:OKE): A Comprehensive Analysis

Font: Financial Modeling Prep  • Aug 03, 2025

• The consensus price target for ONEOK, Inc. (NYSE:OKE) has decreased from $103.33 to $92 over the past year, with Raymond James setting a current price target of $75.
• ONEOK is anticipated to announce positive second-quarter earnings soon, highlighting its strong fee-based revenues and full ownership of Delaware G&P.
• The company's strategic acquisitions and organic growth projects position it well for long-term cash flow and EBITDA growth, with a nearly 5% dividend yield making it attractively valued.

ONEOK, Inc. (NYSE:OKE) is a key player in the U.S. natural gas industry, specializing in gathering, processing, storage, and transportation. The company operates through three segments: Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines. With a vast network of pipelines, ONEOK serves a diverse clientele, including exploration and production companies, propane distributors, and petrochemical firms.

Over the past year, the consensus price target for ONEOK has decreased from $103.33 to $92, as highlighted in the first paragraph. This decline may be due to various factors, including market conditions and changes in the natural gas industry. However, analysts from Raymond James have set a current price target of $75, indicating a more conservative outlook.

Despite the lower price target, ONEOK is expected to announce its second-quarter earnings soon, with positive results anticipated due to its full ownership of Delaware G&P and strong fee-based revenues. This upcoming earnings release is significant for investors, as it may provide insights into the company's financial health and future prospects.

ONEOK's strategic acquisitions and organic growth projects have expanded its infrastructure and diversified its portfolio, positioning the company well for long-term cash flow and EBITDA growth. The company's fee-based midstream model ensures resilient and steady growth, providing reliable dividends that are largely insulated from commodity price fluctuations.

The recent price pullback, combined with a nearly 5% dividend yield, makes ONEOK attractively valued. The integration of EnLink and Medallion assets, along with increasing LNG exports and Gulf Coast demand, positions the company for robust growth in EBITDA and EPS. Raymond James' price target of $75 suggests potential upside for investors, despite the current undervaluation compared to peers.