Is ONEOK, Inc. (OKE) A Good Stock To Buy Now?

Is OKE a bully banal to buy? We came crossed a bullish thesis connected ONEOK, Inc. connected Hazelnuts Research’s Substack. In this article, we volition summarize the bulls’ thesis connected OKE. ONEOK, Inc.'s stock was trading astatine $84.69 arsenic of April 21st. OKE’s trailing and guardant P/E were 15.46 and 15.04 respectively according to Yahoo Finance.

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ONEOK Inc. (OKE) is simply a ample North American midstream relation with a 60,000-mile pipeline web spanning earthy gas, NGLs, crude oil, and refined products, connecting cardinal basins similar the Permian and Williston to large demand centers and export hubs. Roughly 90% of its net are fee-based, providing resilience against commodity terms volatility.

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Following acquisitions of Magellan, EnLink, and Medallion, the institution has importantly expanded its standard and integration capabilities. A cardinal structural tailwind is the rising request for reliable, continuous vigor driven by AI data centers and semiconductor manufacturing, wherever earthy state is emerging arsenic a captious span fuel. This request is further supported by planetary proviso disruptions, including the shutdown of Qatar’s Ras Laffan LNG facility, which has accrued the strategical value of U.S. vigor exports.

Financially, ONEOK generated $33.6 cardinal successful gross and $5.42 successful EPS implicit the past 12 months, with 2026 EBITDA guidance of ~$8.1 cardinal supported by acquisition synergies. The institution offers a 4.9% dividend yield, good covered by escaped currency flow, portion progressing toward its 3.5x leverage people by 2027. Despite these fundamentals, the banal has remained level implicit the past year, creating a imaginable valuation disconnect.

Trading astatine ~15.5x net versus a humanities ~20x multiple, ONEOK appears undervalued comparative to its plus prime and maturation positioning. The operation of deleveraging, AI-driven vigor demand, and imaginable semipermanent contracts with ample vigor consumers could thrust a rerating, portion its stable, fee-based exemplary and indispensable infrastructure supply downside protection.

Previously, we covered a bullish thesis on Kinder Morgan, Inc. (KMI) by Gregg Jahnke successful October 2024, which highlighted the company’s expanding task backlog driven by AI-linked demand, reshoring trends, and imaginable regulatory tailwinds tied to governmental outcomes. KMI's banal terms has appreciated by astir 27.24% since our coverage. Hazelnuts Research shares a akin presumption but emphasizes connected valuation disconnect, deleveraging, and AI-driven structural request supporting ONEOK Inc.’s rerating potential.