SKU: OKE-1 Category:


This is our first report on natural gas storage and transportation giant, ONEOK Inc. The company delivered a mixed set of results for the previous quarter, with revenues well below analyst expectations but managed an earnings beat. The company witnessed remarkable volume strength, particularly in the Rocky Mountain region and Permian Basin, which significantly boosted second-quarter results and set a positive trajectory for the year’s second half. Additionally, ONEOK initiated work on two natural gas liquids (NGL) pipeline expansion projects, recognizing the economic viability of these endeavors driven by the growth in their existing operations. These expansions respond to the growing demand resulting from the substantial increases in NGL volumes. ONEOK’s acquisition of Magellan Midstream is progressing as planned, with critical milestones, including the expiration of the HSR waiting period and the filing of definitive proxy materials, paving the way for a successful merger. This strategic consolidation promises long-term value and immediate financial benefits, backed by synergy assumptions across various categories, offering exciting potential for both companies. The expansion and growth seen in ONEOK’s existing operations continue to drive the need for economically attractive projects, underlining a promising future for the company’s energy-related endeavors. As part of this growth, ONEOK has initiated vital expansion projects in response to increased NGL volumes, further solidifying its position in the energy sector. We initiate coverage on the company with a ‘Hold’ rating.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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