ONEOK, Inc. Investment Analysis - January 02, 2026

Company Overview

ONEOK, Inc. (NYSE: OKE) is a leading midstream service provider in the Oil & Gas sector, headquartered in Tulsa, Oklahoma. Established in 1906, ONEOK operates within a critical segment of the energy market that focuses on gathering, processing, transporting, and storing natural gas and natural gas liquids (NGLs). The company services a diverse range of clients, including exploration and production firms, utilities, and industrial manufacturers. Its operations span key regions in the United States, including the prolific Permian Basin and Gulf Coast. ONEOK's robust business model, built on an extensive network of pipelines and storage facilities, positions it for resilience and growth in the ever-evolving energy sector.

52-Week Price Performance Analysis

52-Week Price Performance Chart

Analyzing ONEOK's stock performance reveals a rather tumultuous year. Currently trading at $73.50, the stock has encountered significant fluctuations with a 52-week high of $111.02 and a low of $64.02, reflecting a notable 24.81% decline over the past year. The stock shows bearish trends, characterized by a series of lower highs and lower lows, indicative of overarching market pressures.

Key Price Levels:

• Resistance Level: Major resistance is observed around the $100 mark. This level has been tested multiple times without firm breakage, solidifying its critical nature.
• Support Level: The current price is testing a notable support level at $73.50. If this threshold fails, additional declines could follow.
• Moving Average: The stock is currently situated just above its 50-day moving average of $70.92, suggesting recent upward momentum. However, it remains below the downward-sloping trend line, signaling potential bearish sentiment unless a breakout occurs.

Momentum Insights:

The consolidation around the $73.50 support could indicate either a fleeting pause before a downward continuation or the beginning of a reversal if the price manages to exceed the moving average and trend line. Investors are encouraged to watch for an increase in volume or significant breakouts as they could signal a shift in market momentum.

Financial Performance and Metrics

In assessing ONEOK's financial health, we find merits in its performance metrics:

• Total Revenue: Approximately $31.56 billion, showcasing strong operational dynamics.
• EBITDA: Roughly $7.38 billion, underscoring proficient cash generation capabilities.
• Net Income: ONEOK's third-quarter net income was reported at $940 million, translating to $1.49 per share, marking a 30% increase compared to the same quarter last year. This growth can largely be attributed to effective acquisitions and operational expansions, particularly in the Permian Basin.

In terms of valuation, investors might find the stock undervalued given its current trading price of $73.50 versus the high target price of $114.00 and an average target price of $88.63. The financial metrics suggest a company well-positioned for potential appreciation.

Recent News and Developments

Recent announcements from ONEOK suggest proactive strategies aimed at shareholder value enhancement:

• The company raised its quarterly dividend by 4%, now set at $1.03 per share, signaling confidence in sustained cash flow and shareholder returns.
• ONEOK also executed a share repurchase of 1.675 million shares for $171.7 million as part of a broader $2 billion share repurchase authorization.
• In terms of operational expansions, ONEOK has plans to invest in a new processing plant and pipeline project in the was prospering Permian Basin, which could yield further operational efficiencies and revenue streams.

Market Sentiment and Analyst Recommendations

Investor sentiment surrounding ONEOK appears cautiously optimistic, reinforced by a relatively low short interest of approximately 0.0354% of the company's floating shares. This suggests minimal bearish positioning among investors.

Analysts' Consensus:

• Average Recommendation: An impressive average recommendation score of 1.95 from 19 analysts represents a strong "Buy" sentiment, reinforcing the notion of ONEOK as an appealing investment.
• Price Targets: Analysts have established varying expectations, with Stifel lowering its price target to $94 from $97, while maintaining a "Buy" rating. Conversely, TD Cowen adjusted its target down to $76, carrying a "Hold" rating, showcasing the varying perspectives on ONEOK's immediate financial outlook.

Conclusion

In conclusion, ONEOK, Inc. represents an attractive investment opportunity characterized by solid fundamentals, a commitment to returning value to shareholders, and strategic operational expansions. Despite current bearish pricing trends and economic fluctuations impacting the Oil & Gas sector, the company's robust revenue stream and attractive dividend yield may provide investors with significant upside potential.

With a target high price of $114.00, and strong analyst backing, prudent investors seeking exposure in the energy market may find ONEOK a compelling stake in their portfolio. Nonetheless, it is critical that investors closely monitor market conditions and key support levels, particularly the $73.50 marker, for indications of upcoming price movements.