Home > Analyses > Energy > ONEOK, Inc.
ONEOK, Inc. powers the flow of natural gas and liquids that fuel millions of homes and industries across the United States. As a dominant force in the midstream oil and gas sector, ONEOK operates an extensive network of pipelines, processing plants, and storage facilities, earning a reputation for reliability and operational excellence. With energy markets evolving rapidly, I explore whether ONEOK’s solid infrastructure and strategic positioning continue to support its growth and market valuation in 2026.
Table of contents
Business Model & Company Overview
ONEOK, Inc., founded in 1906 and headquartered in Tulsa, Oklahoma, stands as a dominant player in the Oil & Gas Midstream sector. Its core mission revolves around an integrated ecosystem of natural gas gathering, processing, storage, and transportation across key U.S. regions, including the Mid-Continent and Rocky Mountains. This expansive network supports a broad range of clients from exploration firms to petrochemical companies, solidifying its vital role in energy infrastructure.
The company’s revenue engine balances extensive pipeline assets—17,500 miles of gathering pipelines and 6,600 miles of transmission pipelines—with strategic storage and terminal facilities across multiple states. ONEOK’s operations span across the Americas, serving diverse markets with natural gas liquids and refined petroleum products. Its economic moat lies in a vast regulated pipeline system and multi-segment integration, positioning it to shape the future of U.S. energy midstream logistics.
Financial Performance & Fundamental Metrics
I will analyze ONEOK, Inc.’s income statement, key financial ratios, and dividend payout policy to assess its overall financial health and investment potential.
Income Statement
Below is the income statement summary for ONEOK, Inc. (ticker: OKE) for the fiscal years 2020 through 2024, reported in USD.
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Revenue | 8.46B | 17.27B | 22.87B | 17.68B | 21.64B |
| Cost of Revenue | 6.43B | 14.25B | 19.75B | 11.93B | 16.59B |
| Operating Expenses | 125M | 167M | 85M | 1.68B | 29M |
| Gross Profit | 2.03B | 3.02B | 3.12B | 5.75B | 5.05B |
| EBITDA | 2.00B | 3.30B | 3.52B | 5.11B | 6.60B |
| EBIT | 1.42B | 2.68B | 2.89B | 4.34B | 5.46B |
| Interest Expense | 619M | 693M | 642M | 845M | 1.35B |
| Net Income | 613M | 1.50B | 1.72B | 2.66B | 3.04B |
| EPS | 1.42 | 3.36 | 3.85 | 5.49 | 5.19 |
| Filing Date | 2021-02-23 | 2022-03-01 | 2023-02-28 | 2024-02-27 | 2025-02-25 |
Income Statement Evolution
From 2020 to 2024, ONEOK, Inc. (OKE) experienced strong revenue growth of 156%, reaching $21.6B in 2024. Net income surged by 395% over the same period, totaling $3.0B in 2024. Despite a 12% decline in gross profit year-over-year, the company maintained favorable gross and EBIT margins at 23.3% and 25.2%, respectively, reflecting improved operational efficiency and cost management.
Is the Income Statement Favorable?
In 2024, ONEOK’s fundamentals appear generally favorable, supported by a 22% revenue increase and 26% EBIT growth compared to 2023. However, net margin and EPS declined by 6.8% and 5.7%, respectively, indicating some pressure on profitability. Interest expense remained neutral at 6.2% of revenue, while the overall income statement evaluation rates 71% favorable, suggesting solid financial health with moderate challenges in margin sustainability.
Financial Ratios
The following table presents key financial ratios for ONEOK, Inc. over the fiscal years 2020 to 2024, enabling a comparative view of the company’s performance and financial health:
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 7.2% | 8.7% | 7.5% | 15.0% | 14.0% |
| ROE | 10.1% | 24.9% | 26.5% | 16.1% | 17.8% |
| ROIC | 6.7% | 10.1% | 10.4% | 7.5% | 6.3% |
| P/E | 27.0 | 17.5 | 17.1 | 12.8 | 19.4 |
| P/B | 2.7 | 4.4 | 4.5 | 2.1 | 3.5 |
| Current Ratio | 1.39 | 0.75 | 0.83 | 0.90 | 0.90 |
| Quick Ratio | 1.11 | 0.56 | 0.64 | 0.67 | 0.74 |
| D/E | 2.37 | 2.28 | 2.11 | 1.32 | 1.90 |
| Debt-to-Assets | 62.1% | 58.1% | 56.2% | 49.2% | 50.4% |
| Interest Coverage | 3.1 | 4.1 | 4.7 | 4.8 | 3.7 |
| Asset Turnover | 0.37 | 0.73 | 0.94 | 0.40 | 0.34 |
| Fixed Asset Turnover | 0.44 | 0.89 | 1.15 | 0.54 | 0.47 |
| Dividend Yield | 9.7% | 6.4% | 5.7% | 5.4% | 3.9% |
Evolution of Financial Ratios
From 2020 to 2024, ONEOK, Inc. saw a fluctuating but generally improving Return on Equity (ROE), reaching 17.8% in 2024 after a low of 10.1% in 2020. The Current Ratio remained below 1.0, indicating persistent liquidity constraints, with a slight increase from 0.75 in 2021 to 0.9 in 2024. The Debt-to-Equity Ratio showed an overall rising trend, peaking at 2.37 in 2020 and stabilizing around 1.9 in 2024, reflecting consistent leverage and stable profitability margins.
Are the Financial Ratios Favorable?
In 2024, profitability ratios such as net margin (14.0%) and ROE (17.8%) are favorable, indicating efficient profit generation. Liquidity ratios, including current (0.9) and quick (0.74), are unfavorable, suggesting potential short-term financial strain. Leverage remains high with a debt-to-equity ratio of 1.9 and debt-to-assets at 50.4%, both unfavorable, while interest coverage is neutral at 4.04. Efficiency ratios like asset turnover (0.34) and fixed asset turnover (0.47) are also unfavorable. Dividend yield at 3.93% is favorable, but overall, the global ratio assessment is slightly unfavorable.
Shareholder Return Policy
ONEOK, Inc. has consistently paid dividends with a payout ratio around 70-110% in recent years, including 76% in 2024 and a dividend yield near 3.9%. Dividend payments are covered by free cash flow and operating cash flow, though coverage ratios have tightened recently. The company does not appear to engage in share buybacks.
The relatively high payout ratio combined with stable dividend yields suggests a commitment to returning capital, but the narrow free cash flow coverage indicates potential risk if cash generation weakens. This policy supports shareholder income but requires monitoring to ensure long-term sustainability amid operational and market fluctuations.
Score analysis
The following radar chart presents a comprehensive view of ONEOK, Inc.’s key financial scores across various valuation and performance metrics:
ONEOK, Inc. shows very favorable scores in discounted cash flow and return on equity, and a favorable return on assets score. However, the debt to equity score is very unfavorable, while price-to-earnings and price-to-book scores are moderate, resulting in an overall moderate rating.
Analysis of the company’s bankruptcy risk
The Altman Z-Score places ONEOK, Inc. in the distress zone, indicating a higher risk of financial distress and potential bankruptcy:
Is the company in good financial health?
This Piotroski diagram illustrates the company’s financial strength based on nine accounting criteria:
With a Piotroski Score of 6, ONEOK, Inc. is considered to have average financial health, suggesting moderate financial strength but not reaching the highest levels of robustness.
Competitive Landscape & Sector Positioning
This sector analysis will examine ONEOK, Inc.’s strategic positioning, revenue segments, key products, main competitors, and overall market environment. I will also assess whether ONEOK holds a competitive advantage relative to its industry peers.
Strategic Positioning
ONEOK, Inc. maintains a concentrated product portfolio focused on natural gas midstream services, with dominant revenue from Natural Gas Liquids (15.2B in 2024) and significant operations in gathering, processing, and pipelines. Its geographic exposure is primarily within the US, spanning multiple states in the Mid-Continent and Rocky Mountain regions.
Revenue by Segment
This pie chart illustrates ONEOK, Inc.’s revenue distribution by segment for the fiscal year 2024, highlighting the relative contribution of each business area.
In 2024, Natural Gas Liquids remained the dominant revenue driver with $15.2B, followed by Natural Gas Gathering and Processing at $4.6B, and Refined Products and Crude Oil at $4.5B. Natural Gas Pipelines contributed a smaller $822M. The data shows a notable rebound in Refined Products and Crude Oil compared to 2023, while the other segments demonstrated steady growth or stability, indicating a moderate diversification in revenue streams with a concentration still focused on liquids and processing.
Key Products & Brands
The table below presents ONEOK, Inc.’s principal products and business segments with their descriptions:
| Product | Description |
|---|---|
| Natural Gas Gathering and Processing | Gathering and processing natural gas via pipelines and processing plants primarily in the Mid-Continent and Rocky Mountain regions. |
| Natural Gas Liquids (NGL) | Gathering, treating, fractionating, transporting, storing, marketing, and distributing natural gas liquids across multiple states. |
| Natural Gas Pipelines | Operation of regulated interstate and intrastate natural gas transmission pipelines and storage facilities. |
| Refined Products and Crude Oil | Handling refined petroleum products and crude oil through pipelines and related infrastructure. |
ONEOK operates a diversified midstream energy business focused on natural gas and NGL infrastructure, with extensive pipeline networks and storage facilities supporting various customers in the energy sector.
Main Competitors
There are 4 competitors in the Oil & Gas Midstream industry; the table below lists the top 4 leaders by market capitalization:
| Competitor | Market Cap. |
|---|---|
| The Williams Companies, Inc. | 74.3B |
| Kinder Morgan, Inc. | 61.6B |
| ONEOK, Inc. | 46.8B |
| Targa Resources Corp. | 40.1B |
ONEOK, Inc. ranks 3rd among its competitors with a market cap representing 66.05% of the leader’s size. It is positioned below both the average market cap of the top 10 (55.7B) and the median market cap in the sector (54.2B). The company maintains a 25.47% market cap gap from the nearest competitor above, indicating a moderate distance in scale.
Comparisons with competitors
Check out how we compare the company to its competitors:
Does OKE have a competitive advantage?
ONEOK, Inc. currently does not present a strong competitive advantage as its return on invested capital (ROIC) is below its weighted average cost of capital (WACC), indicating value is being shed with a declining profitability trend. Despite favorable income statement metrics like a 25.24% EBIT margin and 14.03% net margin, the overall economic moat is assessed as slightly unfavorable.
Looking ahead, ONEOK’s extensive pipeline infrastructure across key U.S. regions and its diversified natural gas and NGL operations provide opportunities for growth in midstream energy markets. Continued revenue growth of 22.41% in the past year and a 155.86% increase over the overall period suggest potential for future expansion, though cautious monitoring of profitability trends remains essential.
SWOT Analysis
This analysis highlights ONEOK, Inc.’s key internal and external factors to inform strategic investment decisions.
Strengths
- Strong revenue growth (22.4% YoY)
- Solid net margin (14.03%)
- Diversified midstream assets across multiple states
Weaknesses
- High debt-to-equity ratio (1.9)
- Low liquidity ratios (current 0.9, quick 0.74)
- Declining ROIC trend indicating value erosion
Opportunities
- Expanding natural gas demand in U.S. energy transition
- Potential pipeline capacity expansions
- Increasing dividend yield (3.93%) attractive to income investors
Threats
- Regulatory risks in energy infrastructure
- Volatility in natural gas prices
- Competition from renewable energy sources
Overall, ONEOK’s robust revenue growth and operational footprint provide a solid base, yet financial leverage and declining profitability metrics warrant caution. Strategic focus should include deleveraging and capitalizing on growth opportunities in natural gas infrastructure while managing regulatory and market risks.
Stock Price Action Analysis
The following weekly stock chart illustrates ONEOK, Inc.’s price movements over the past 100 weeks, highlighting key fluctuations and trends:
Trend Analysis
Over the past 12 months, ONEOK, Inc. (OKE) stock price increased by 3.82%, indicating a bullish trend with acceleration. The price ranged from a low of 67.0 to a high of 117.05, exhibiting significant volatility reflected by an 11.45 standard deviation. Recent weeks show further strengthening with a 14.5% gain since November 2025.
Volume Analysis
Trading volume has been increasing, with total volume near 1.98B shares. Buyer volume slightly exceeds seller volume at 51.37%, indicating buyer-driven activity overall. In the recent period (Nov 2025 to Jan 2026), buyer dominance intensified to 71.61%, suggesting strong investor confidence and heightened market participation.
Target Prices
The consensus target prices for ONEOK, Inc. reflect a cautiously optimistic outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 110 | 72 | 87.2 |
Analysts expect the stock price to trade between $72 and $110, with an average target around $87.2, indicating moderate upside potential balanced by some downside risk.
Don’t Let Luck Decide Your Entry Point
Optimize your entry points with our advanced ProRealTime indicators. You’ll get efficient buy signals with precise price targets for maximum performance. Start outperforming now!
Analyst & Consumer Opinions
This section examines recent analyst ratings and consumer feedback related to ONEOK, Inc. (OKE).
Stock Grades
Here is a detailed overview of recent stock grades from recognized financial institutions for ONEOK, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Maintain | Buy | 2026-01-22 |
| Barclays | Maintain | Equal Weight | 2026-01-15 |
| Scotiabank | Maintain | Sector Outperform | 2025-11-04 |
| Citigroup | Maintain | Buy | 2025-10-31 |
| TD Cowen | Maintain | Hold | 2025-10-30 |
| Wells Fargo | Maintain | Equal Weight | 2025-10-30 |
| Raymond James | Maintain | Outperform | 2025-10-24 |
| Barclays | Maintain | Equal Weight | 2025-10-09 |
| Mizuho | Maintain | Neutral | 2025-08-29 |
| Morgan Stanley | Maintain | Overweight | 2025-08-26 |
The grades indicate a balanced sentiment with a majority maintaining neutral to slightly positive stances, reflecting a consensus leaning towards holding the stock with some institutions favoring buy or outperform ratings.
Consumer Opinions
Consumer sentiment regarding ONEOK, Inc. reflects a mix of appreciation for its operational reliability and concerns about market volatility.
| Positive Reviews | Negative Reviews |
|---|---|
| Consistently strong dividend payouts attract income-focused investors. | Some investors worry about exposure to energy sector fluctuations. |
| Efficient management leading to steady cash flow and infrastructure growth. | Complaints about stock price volatility impacting short-term gains. |
| Commitment to sustainable energy initiatives noted positively by eco-conscious consumers. | Limited diversification outside of natural gas infrastructure. |
Overall, consumers praise ONEOK for its solid dividends and operational efficiency, while expressing caution about sector risks and stock price swings.
Risk Analysis
Below is a summary table presenting key risks associated with investing in ONEOK, Inc. (OKE), highlighting their probability and potential impact:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Financial Stability | Altman Z-Score of 1.47 places the company in the distress zone, signaling higher bankruptcy risk. | High | High |
| Leverage and Debt | High debt-to-equity ratio of 1.9 and unfavorable debt metrics increase financial risk. | High | High |
| Liquidity | Current ratio (0.9) and quick ratio (0.74) are below 1, indicating potential short-term liquidity issues. | Moderate | Moderate |
| Market Valuation | Price-to-book ratio at 3.46 is unfavorable, implying potential overvaluation risk. | Moderate | Moderate |
| Industry Exposure | Dependence on the volatile oil & gas midstream sector exposes the company to commodity price swings and regulatory changes. | Moderate | High |
| Operational Efficiency | Low asset turnover ratios suggest challenges in asset utilization which could affect profitability. | Moderate | Moderate |
The most concerning risks for ONEOK are its financial stability and leverage, given the Altman Z-Score in the distress zone and high debt levels. These factors could lead to higher vulnerability in economic downturns. Additionally, industry volatility remains impactful, requiring cautious risk management.
Should You Buy ONEOK, Inc.?
ONEOK, Inc. appears to have a moderately robust profitability profile with improving operational efficiency, yet its competitive moat could be seen as slightly unfavorable due to declining value creation. Despite substantial leverage and a distress-level Altman Z-score, its overall B+ rating suggests a cautiously favorable risk-return balance.
Strength & Efficiency Pillars
ONEOK, Inc. exhibits solid profitability with a net margin of 14.03% and a return on equity (ROE) of 17.82%, reflecting effective management of shareholder capital. The company maintains a weighted average cost of capital (WACC) at 6.11%, slightly below its return on invested capital (ROIC) of 6.29%, positioning it marginally as a value creator. Despite this, the Altman Z-Score of 1.47 signals financial distress risk, although the Piotroski Score of 6 indicates average financial health. These mixed indicators suggest operational efficiency tempered by cautious financial stability.
Weaknesses and Drawbacks
ONEOK faces challenges notably in leverage and liquidity. The debt-to-equity ratio stands at a high 1.9, and the current ratio is weak at 0.9, raising concerns about short-term financial flexibility. The price-to-book ratio of 3.46 also appears elevated, suggesting a premium valuation that could limit upside. Additionally, unfavorable asset turnover metrics (0.34) point to efficiency issues in asset utilization. These factors collectively impose risks related to capital structure and market valuation that investors should weigh carefully.
Our Verdict about ONEOK, Inc.
The long-term fundamental profile of ONEOK, Inc. might appear moderately favorable given its profitability and marginal value creation. Coupled with a bullish overall stock trend and strong recent buyer dominance (71.61%), the profile suggests potential for long-term exposure. However, elevated leverage and liquidity concerns, along with a distress-zone Altman Z-Score, imply that investors could consider a cautious approach, balancing opportunity with risk management.
Disclaimer: This content is for informational purposes only and does not constitute financial, investment, or other professional advice. Investing in financial markets involves a significant risk of loss, and past performance is not indicative of future results.
Additional Resources
- ONEOK (NYSE:OKE) Has A Pretty Healthy Balance Sheet – Yahoo Finance (Jan 24, 2026)
- Rakuten Investment Management Inc. Buys New Position in ONEOK, Inc. $OKE – MarketBeat (Jan 24, 2026)
- Is ONEOK’s (OKE) Higher Dividend Quietly Redefining Its Capital Allocation Priorities? – Sahm (Jan 24, 2026)
- ONEOK, Inc. Announces Fourth-Quarter and Year-End 2025 Earnings Release and Conference Call Date – Quiver Quantitative (Jan 20, 2026)
- Jefferies Initiates Coverage of ONEOK (OKE) with Hold Recommendation – Nasdaq (Jan 21, 2026)
For more information about ONEOK, Inc., please visit the official website: oneok.com
