OKE

Energy

Oneok

Price Chart

Market Data

Financials

XBRL · SEC EDGAR

2007–2025(19yr)

Revenue

Net Income

Free CF

Metric	FY 2007	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$13.5B	$16.2B	$11.1B	$13.0B	$14.8B	$12.6B	$14.6B	$12.2B	$7.8B	$8.9B	$12.2B	$12.6B	$10.2B	$8.5B	$16.5B	$22.4B	$17.7B	$21.7B	$33.6B	+55.0%
Gross Profit	$1.8B	$1.9B	$2.0B	$2.1B	$2.4B	$2.4B	$2.3B	$2.1B	$2.1B	$2.4B	$2.6B	$3.2B	$3.4B	$3.4B	$4.3B	$4.5B	$5.7B	$8.4B	$10.3B	+22.3%
Gross Margin	13.4%	12.0%	18.1%	15.9%	16.1%	18.6%	15.7%	17.3%	27.3%	27.2%	21.7%	25.2%	33.2%	40.2%	25.9%	20.0%	32.5%	38.7%	30.5%	-8.2pp
Operating Income	$822.5M	$917.0M	$894.6M	$944.0M	$1.2B	$1.1B	$926.7M	$1.1B	$996.2M	$1.3B	$1.4B	$1.8B	$1.9B	$1.4B	$2.6B	$2.8B	$4.1B	$5.0B	$5.7B	+15.1%
Operating Margin	6.1%	5.7%	8.1%	7.2%	7.8%	8.7%	6.3%	9.4%	12.8%	14.4%	11.3%	14.6%	18.8%	15.9%	15.7%	12.5%	23.0%	23.0%	17.1%	-5.9pp
Net Income	$304.9M	$311.9M	$305.5M	$334.6M	$360.6M	$360.6M	$266.5M	$314.1M	$245.0M	$352.0M	$387.8M	$1.2B	$1.3B	$612.8M	$1.5B	$1.7B	$2.7B	$3.0B	$3.4B	+11.8%
Net Margin	2.3%	1.9%	2.7%	2.6%	2.4%	2.9%	1.8%	2.6%	3.2%	3.9%	3.2%	9.1%	12.6%	7.2%	9.1%	7.7%	15.0%	14.0%	10.1%	-3.9pp
Free Cash Flow	$146.0M	-$997.5M	$661.4M	$251.3M	$23.9M	-$875.2M	-$961.8M	-$493.5M	-$181.3M	$727.0M	$803.0M	$45.2M	-$1.9B	-$296.3M	$1.8B	$1.7B	$2.8B	$2.9B	$2.4B	-14.6%
FCF Margin	1.1%	-6.2%	6.0%	1.9%	0.2%	-6.9%	-6.6%	-4.0%	-2.3%	8.1%	6.6%	0.4%	-18.7%	-3.5%	11.2%	7.6%	16.0%	13.2%	7.3%	-5.9pp
EPS (Diluted)	$2.79	$2.95	$2.87	$3.10	$3.36	$1.71	$1.27	$1.49	$1.16	$1.66	$1.29	$2.78	$3.07	$1.42	$3.35	$3.84	$5.48	$5.17	$5.42	+4.8%

Total Debt$30.8B

Cash & Equiv.$78.0M

Net Debt$30.7B

3 min read

1. THE BIG PICTURE

Oneok is currently prioritizing infrastructure footprint over immediate profitability. While Oneok leads its peer group with a staggering 55% revenue growth, its net margin of 10.5% significantly trails more efficient competitors like Williams (22.7%) and Kinder Morgan (16.6%). Oneok is effectively betting that its integrated, multi-basin network will provide enough fee-based stability to service its $34.2 billion in net debt while sustaining a sector-leading 4.8% dividend yield.

2. WHERE THE RISKS HIT HARDEST

Oneok’s "integrated asset base" is threatened by its "third-party production dependence" because the high fixed costs of its gathering and processing infrastructure require consistent throughput to remain viable (10-K Item 1). If producers curtail drilling in the shale basins Oneok serves, the utilization rates of major projects like the Bighorn plant or Elk Creek pipeline could drop, directly impacting the cash flows needed to service $34.0 billion in total indebtedness (Risks). Furthermore, while management highlights that 90% of earnings are fee-based, the remaining 10% exposure to commodity prices means that even minor price volatility in NGLs or crude oil can tighten the cash flow available for dividends (10-K Item 1).

3. WHAT THE NUMBERS SAY TOGETHER

The financial data reveals a clear divergence between top-line expansion and operational efficiency. Revenue grew 55% (TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter), yet gross margins compressed by 8.2 percentage points and net margins fell by 3.9 percentage points between FY2024 and FY2025 (XBRL). This suggests that the "multi-year acquisition plan" cited by the CEO has added significant volume but at a higher cost of operations or lower initial returns (8-K). Short interest at 4.7% of the float suggests some market skepticism regarding this rapid expansion or the resulting leverage (Yahoo Finance). Despite the margin compression, the 4.8% dividend yield remains the highest among peers, though it is supported by a relatively thin 9.0% FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin compared to EOG’s 45.4% or Williams’ 17.1% (XBRL).

4. IS IT WORTH IT AT THIS PRICE?

At 14.1x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Oneok is priced in line with the peer median of 14.4x. The market is pricing in approximately 2.3% long-term growth (CAPM analysis). This appears conservative given that Oneok delivered double-digit earnings growth in 2025 and is projecting 2026 net income as high as $3.71 billion (8-K). However, the valuation is tempered by a significant debt-to-FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders ratio; with $34.2 billion in net debt against $2.7 billion in annual FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders, Oneok is carrying 12.9x net leverage (CAPM analysis). Investors are paying a fair-market multiple for a high-growth revenue story that carries significantly more balance sheet risk than peers like EOG, which holds only $4.2 billion in net debt.

5. WHAT WOULD CHANGE THIS VIEW?

Constructive if 2026 net income reaches the upper end of the $3.71 billion guidance range, proving that synergy capture from recent acquisitions is successfully offsetting margin compression.
Cautious if throughput volumes in the Natural Gas Gathering and Processing segment decline, indicating that third-party producer activity is slowing in key basins.
Cautious if the $2.0 billion share repurchase program is delayed or reduced to prioritize debt-service payments on the $34.0 billion debt load.

6. BOTTOM LINE

Structural Advantage: A massive, integrated midstream network with 90% fee-based contracts that connect productive shale basins to high-demand export and refinery centers. Bottom Line: Oneok offers the sector's best dividend yield and revenue growth, but its heavy debt load and compressing margins make it a leveraged bet on continued U.S. energy production volumes.

Source: Synthesis · LLM Analysis

3 min read

1. Top 5 Material Risks

Third-Party Production Dependence: Oneok’s gathering and transportation systems rely on third-party drilling and production. A decline in drilling near its assets or producer curtailments directly reduces throughput volumes and asset utilization rates.
Commodity Price Volatility: Oneok is exposed to price fluctuations for natural gas, NGLs, Refined Products, and crude oil. Because it retains a portion of these commodities under certain contracts, lower prices directly reduce the cash flows generated from sales.
Operational Hazards: Oneok faces risks from leaks, pipeline ruptures, equipment failure, and catastrophic events like tornadoes or cyberattacks. These events can cause injury, property damage, and environmental harm, potentially exceeding insurance coverage limits.
Debt Obligations: With $34.0 billion in total indebtedness as of December 31, 2025, Oneok faces significant debt-service obligations that reduce cash available for dividends, capital expenditures, and acquisitions.
Regulatory Compliance: Oneok is subject to extensive federal and state regulation, including FERC oversight of interstate transportation rates. Adverse regulatory changes or challenges to tariff rates can force Oneok to reduce rates or issue refunds to shippers.

2. Company-Specific Risks

Joint Venture Governance: Oneok participates in several joint ventures where it may be unable to unilaterally authorize significant actions, such as large expenditures or asset acquisitions, without the concurrence of other participants.
Measurement Adjustments: Oneok faces material risks from measurement adjustments inherent in its thousands of pieces of measurement equipment and the varying quality of natural gas and NGL streams, which can impact reported results.
Pension and Postretirement Costs: Oneok maintains defined benefit pension plans and postretirement welfare plans; sustained declines in equity markets or reductions in bond yields may require additional cash contributions to these plans.
Labor Shortages: A shortage of skilled labor in the midstream industry has previously forced Oneok to hire outside resources, which can decrease productivity and increase operating costs.

3. Regulatory/Legal Risks

FERC Rate Regulation: The FERC regulates interstate transportation rates; if Oneok’s negotiated rates are determined not to be "just and reasonable," Oneok could be forced to adopt cost-of-service pricing, which is expensive and could lead to tariff reductions.
Renewable Fuel Obligations: As an obligated party under the Renewable Fuel Standard Program due to its liquids blending activities, Oneok must purchase renewable identification numbers (RINs). Volatility in the cost or availability of RINs directly impacts business costs.
Environmental Liability: Under laws such as CERCLA and RCRA, Oneok faces strict, joint and several liability for the remediation of contaminated areas, including sites where contamination may have migrated from third-party operations.
Fraudulent Conveyance: Cross guarantees on indebtedness provided by Oneok and its subsidiaries could be challenged or avoided by a court under fraudulent conveyance laws if the guarantor was insolvent or received less than fair consideration at the time the guarantee was issued.

4. Financial Impact Map

Third-Party Production Dependence → Revenue and Cash Flows → Reduced throughput volumes lead to lower service fees and commodity sales proceeds.

Commodity Price Volatility → Revenue and Cash Flows → Lower market prices for retained commodities directly reduce cash receipts from sales.

Operational Hazards → Operating Costs and Net Income → Uninsured losses, remediation costs, and property damage charges reduce earnings and cash flow.

Debt Obligations → Cash Flows and Dividends → High debt-service requirements reduce the cash available for dividend payments and capital expenditures.

Regulatory Compliance (FERC) → Revenue → Tariff challenges or rate-reduction orders directly lower transportation service revenue.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-K	Feb 2026	Dec 2025
8-K	Feb 2026	—
10-Q	Oct 2025	Sep 2025
14A	Apr 2025	—