ONEOK (NYSE:OKE) Stock, Quote.Headers.trade-ideas

ONEOK

Oneok is a diversified midstream service provider specializing in natural gas gathering, processing, storage, and transportation and natural gas liquids transportation and fractionation. It also operates a refined product and crude oil segment connecting producers, refiners, and consumers. Operations are in the midcontinent, Permian, and Rocky Mountain regions.

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Natural gas futures bounced back Thursday morning, with February contracts climbing by over 2% to $3.71 per million British units.

Natural Gas Prices Surge As Arctic Blast Freezes US: 3 Stocks On The Move

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TPYP

EnLink Midstream up premarket after merger deal with ONEOK for $4.3B. ONEOK to issue 37M shares, expected to close in Q1 2025.

ONEOK Bolsters Portfolio With EnLink Acquisition, $4.3 Billion Deal Unveiled

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Natural gas prices surge 50% to $3.40/MMBtu, highest in over a year due to colder weather, geopolitical tensions, and export demand: 7 stocks to watch.

7 US Natural Gas Stocks To Watch As Henry Hub Prices Surge 50% In November

ONEOK Inc

Okeanis Eco Tankers Corp

OKINAWA ELECTRIC PWR CO by Okinawa Electric Power Co. (The)

The Okinawa Electric Power Co Inc

An arctic air blast across the U.S. is driving up heating demand and creating volatile <a href="https://www.benzinga.com/markets/commodities">conditions in energy markets</a>.
What Happened: Natural gas futures bounced back Thursday morning, with February contracts climbing by over 2% to $3.71 per million British units.
According to the National Weather Center (NWC), "Periods of locally heavy coastal rains and higher elevation snow continue for much of the northwestern U.S."
See Also: <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42764583/mortgage-rates-soar-to-697-applications-crash-jobless-claims-fall-thursdays-econ-data">Mortgage Rates Soar To 6.97%, Applications Crash, Jobless Claims Fall: Thursday&#8217;s Economic Data</a>
The next two days will see a deluge of rain and snow over the Northwest. The heaviest moisture will target the northern California coast and Oregon today. The NWC highlighted an isolated threat of flash flooding in these areas.
"Accumulating snow is possible over the highest elevations of the Cascades, Sierra and Northern Rockies," the NWC added, noting that snow showers will continue in the Northern and Central Rockies, while rain and snow showers expand across the Northwest on Friday.
The Great Lakes region is bracing for heavy snowfall, with isolated areas expecting accumulations of up to one foot. Snowfall of six to 12 inches is also forecast for parts of the Central Appalachians by Friday.
Why It Matters: Winter weather is driving much of the action, and liquefied natural gas (LNG) exports continue to fuel demand as Natural Gas Intel reported.
Natural gas-related stocks posted notable gains by mid-morning Thursday, reflecting optimism about rising demand and cold-driven volatility in the market.
U.S. natural gas prices — as tracked by the United States Natural Gas Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNG#NYSE">UNG</a>) — have risen by 15% over the past month.
Pipeline giant ONEOK Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKE#NYSE">OKE</a>) soared 1.57%, trading at $102.28, while Kinder Morgan Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMI#NYSE">KMI</a>), a major natural gas transporter, advanced 2% to $27.94.
Shares of NGL Energy Partners LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NGL#NYSE">NGL</a>) rose 1.2% to $5.05. It was buoyed by expectations of increased activity in the natural gas infrastructure sector.
What&#8217;s Next: Traders are anxiously awaiting Friday&#8217;s U.S. Energy Information Administration storage report.
Withdrawal estimates for the week ended Dec. 27 range from 77 to 159 billion cubic feet, with an average expectation of 127 Bcf.
If realized, the 127 Bcf draw would erase much of the 166 Bcf surplus left after last week's 93 Bcf withdrawal. For comparison, last year's pull for the same period was just 35 Bcf, while the five-year average is 104 Bcf.
Now Read: 
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Image: Shutterstock

Wells Fargo analyst Michael Blum downgrades ONEOK (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKE#NYSE">OKE</a>) from Overweight to Equal-Weight and maintains the price target from $107 to $107.

Downgrades

Price Target

Analyst Ratings

Wells Fargo Downgrades ONEOK to Equal-Weight, Maintains Price Target to $107

ONEOK (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKE#NYSE">OKE</a>) has outperformed the market over the past 20 years by 2.02% on an annualized basis producing an average annual return of 10.41%. Currently, ONEOK has a market capitalization of $59.38 billion. 
Buying $100 In OKE: If an investor had bought $100 of OKE stock 20 years ago, it would be worth $712.69 today based on a price of $101.63 for OKE at the time of writing.
<h3>ONEOK's Performance Over Last 20 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1734469211_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much $100 Invested In ONEOK 20 Years Ago Would Be Worth Today

Includes MB-6 NGL Fractionator and Full Looping of the West Texas NGL Pipeline
TULSA, Okla., Dec. 4, 2024 /PRNewswire/ -- ONEOK, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKE#NYSE">OKE</a>) today announced the completion of MB-6, a 125,000-barrel per day (bpd) natural gas liquids (NGL) fractionator in Mont Belvieu, Texas, and the full looping of the West Texas NGL Pipeline system.
The completion of MB-6 increases the company's fractionation capacity to more than 1 million bpd, reducing the need for third-party fractionation and enhancing ONEOK's ability to serve growing NGL market demand.
Completion of the full looping of the West Texas NGL Pipeline system expands the capacity to 515,000 bpd. Additional pump stations, which are expected to be completed in mid-2025, will further increase system capacity to 740,000 bpd.&nbsp; &nbsp;

ONEOK Announces Completion Of NGL Fractionation And Pipeline Expansion Projects; The Completion Of MB-6 Increases The Company's Fractionation Capacity To More Than 1M Barrels/Day

Throughout the last three months, 10 analysts have evaluated ONEOK (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKE#NYSE">OKE</a>), offering a diverse set of opinions from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">3</td>
<td align="right">2</td>
<td align="right">5</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts have recently evaluated ONEOK and provided 12-month price targets. The average target is $105.5, accompanied by a high estimate of $132.00 and a low estimate of $94.00. Surpassing the previous average price target of $94.78, the current average has increased by 11.31%.
<img src="https://www.benzinga.com/files/images/story/2024/1733259682_0.png" alt="price target chart" />
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
A comprehensive examination of how financial experts perceive ONEOK is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Hold</td>
<td>$107.00</td>
<td>$99.00</td>
</tr>
<tr>
<td>Brian Reynolds</td>
<td>UBS</td>
<td>Raises</td>
<td>Buy</td>
<td>$132.00</td>
<td>$112.00</td>
</tr>
<tr>
<td>Theresa Chen</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$99.00</td>
<td>$94.00</td>
</tr>
<tr>
<td>Michael Blum</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Overweight</td>
<td>$107.00</td>
<td>$100.00</td>
</tr>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Hold</td>
<td>$99.00</td>
<td>$83.00</td>
</tr>
<tr>
<td>Sunil Sibal</td>
<td>Seaport Global</td>
<td>Raises</td>
<td>Buy</td>
<td>$103.00</td>
<td>$91.00</td>
</tr>
<tr>
<td>Jean Ann Salisbury</td>
<td>B of A Securities</td>
<td>Announces</td>
<td>Buy</td>
<td>$105.00</td>
<td>-</td>
</tr>
<tr>
<td>Elvira Scotto</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Sector Perform</td>
<td>$98.00</td>
<td>$89.00</td>
</tr>
<tr>
<td>Theresa Chen</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$94.00</td>
<td>$82.00</td>
</tr>
<tr>
<td>Robert Kad</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Overweight</td>
<td>$111.00</td>
<td>$103.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to ONEOK. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of ONEOK compared to the broader market.</li>
<li>Price Targets: Analysts provide insights into price targets, offering estimates for the future value of ONEOK's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of ONEOK's market standing. Stay informed and make data-driven decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/OKE/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on ONEOK analyst ratings.</a>
<h2>Discovering ONEOK: A Closer Look</h2>
Oneok is a diversified midstream service provider specializing in natural gas gathering, processing, storage, and transportation and natural gas liquids transportation and fractionation. It also operates a refined product and crude oil segment connecting producers, refiners, and consumers. Operations are in the midcontinent, Permian, and Rocky Mountain regions.
<h3>ONEOK: Financial Performance Dissected</h3>
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
Revenue Growth: Over the 3 months period, ONEOK showcased positive performance, achieving a revenue growth rate of 19.91% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Energy sector.
Net Margin: ONEOK's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 13.78%, the company may face hurdles in effective cost management.
Return on Equity (ROE): ONEOK's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 4.12%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.45%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: ONEOK's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.67.
<h2>The Basics of Analyst Ratings</h2>
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
Breaking: Wall Street's Next Big Mover
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

The Latest Analyst Ratings For ONEOK

Truist Securities analyst Neal Dingmann maintains ONEOK (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKE#NYSE">OKE</a>) with a Hold and raises the price target from $99 to $107.

Truist Securities Maintains Hold on ONEOK, Raises Price Target to $107

ONEOK's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKE#NYSE">OKE</a>) short percent of float has risen 23.64% since its last report. The company recently reported that it has 13.93 million shares sold short, which is 2.72% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.13 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>ONEOK Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1733152521_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for ONEOK has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing ONEOK's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, ONEOK's peer group average for short interest as a percentage of float is 4.06%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Peering Into ONEOK's Recent Short Interest

Financial giants have made a conspicuous bearish move on ONEOK. Our analysis of options history for ONEOK (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKE#NYSE">OKE</a>) revealed 10 unusual trades.
Delving into the details, we found 30% of traders were bullish, while 40% showed bearish tendencies. Out of all the trades we spotted, 6 were puts, with a value of $1,175,640, and 4 were calls, valued at $198,649.
<h3>Projected Price Targets</h3>
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $105.0 to $125.0 for ONEOK during the past quarter. 
<h3>Analyzing Volume &amp; Open Interest</h3>
In today's trading context, the average open interest for options of ONEOK stands at 201.0, with a total volume reaching 1,759.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in ONEOK, situated within the strike price corridor from $105.0 to $125.0, throughout the last 30 days.
<h3>ONEOK Call and Put Volume: 30-Day Overview</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1732563921_0.png" alt="Options Call Chart" />
<h3>Significant Options Trades Detected:</h3>

<table>
<thead>
<tr>
<th>Symbol</th>
<th>PUT/CALL</th>
<th>Trade Type</th>
<th>Sentiment</th>
<th>Exp. Date</th>
<th>Ask</th>
<th>Bid</th>
<th>Price</th>
<th>Strike Price</th>
<th>Total Trade Price</th>
<th align="right">Open Interest</th>
<th>Volume</th>
</tr>
</thead>
<tbody>
<tr>
<td>OKE</td>
<td>PUT</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>01/17/25</td>
<td>$10.0</td>
<td>$9.6</td>
<td>$9.7</td>
<td>$120.00</td>
<td>$970.0K</td>
<td align="right">59</td>
<td>1.0K</td>
</tr>
<tr>
<td>OKE</td>
<td>CALL</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/16/26</td>
<td>$16.4</td>
<td>$15.6</td>
<td>$15.8</td>
<td>$105.00</td>
<td>$64.7K</td>
<td align="right">277</td>
<td>42</td>
</tr>
<tr>
<td>OKE</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>01/17/25</td>
<td>$3.8</td>
<td>$3.7</td>
<td>$3.8</td>
<td>$110.00</td>
<td>$57.0K</td>
<td align="right">383</td>
<td>210</td>
</tr>
<tr>
<td>OKE</td>
<td>CALL</td>
<td>TRADE</td>
<td>BULLISH</td>
<td>04/17/25</td>
<td>$8.0</td>
<td>$7.7</td>
<td>$7.9</td>
<td>$110.00</td>
<td>$54.5K</td>
<td align="right">664</td>
<td>105</td>
</tr>
<tr>
<td>OKE</td>
<td>PUT</td>
<td>TRADE</td>
<td>BEARISH</td>
<td>09/19/25</td>
<td>$15.2</td>
<td>$14.8</td>
<td>$15.2</td>
<td>$120.00</td>
<td>$47.1K</td>
<td align="right">0</td>
<td>50</td>
</tr>
</tbody>
</table>

<h3>About ONEOK</h3>
Oneok provides natural gas gathering, processing, storage, and transportation as well as natural gas liquids transportation and fractionation. It owns extensive assets in the midcontinent, Permian, and Rocky Mountain regions.
After a thorough review of the options trading surrounding ONEOK, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
<h3>Where Is ONEOK Standing Right Now?</h3>
<ul>
<li>With a volume of 4,754,730, the price of OKE is down -5.9% at $110.14. </li>
<li>RSI indicators hint that the underlying stock may be approaching overbought.</li>
<li>Next earnings are expected to be released in 91 days.</li>
</ul>
<h3>What The Experts Say On ONEOK</h3>
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $108.0.
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&#x2A; Consistent in their evaluation, an analyst from Wells Fargo keeps a Overweight rating on ONEOK with a target price of $107. 
&#x2A; An analyst from Barclays has decided to maintain their Equal-Weight rating on ONEOK, which currently sits at a price target of $99. 
&#x2A; An analyst from Truist Securities has decided to maintain their Hold rating on ONEOK, which currently sits at a price target of $99. 
&#x2A; Maintaining their stance, an analyst from Seaport Global continues to hold a Buy rating for ONEOK, targeting a price of $103. 
&#x2A; An analyst from UBS persists with their Buy rating on ONEOK, maintaining a target price of $132. 
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest ONEOK options trades with real-time alerts from <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.

Options

Markets

A Closer Look at ONEOK's Options Market Dynamics

WIIM

ONEOK shares are trading lower after the company announced plans to acquire the remaining EnLink units in a $4.3 billion stock deal.

FANG

Shares of oil and gas companies are trading lower following reports suggesting an Israel-Hezbollah ceasefire.

EnLink Midstream, LLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ENLC#NYSE">ENLC</a>) shares traded higher premarket on Monday after it disclosed a merger deal with ONEOK, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKE#NYSE">OKE</a>) for $4.3 billion.
As per the deal, each EnLink common unit not owned by ONEOK will be exchanged for <a target="_blank" href="https://www.benzinga.com//node/42155913" rel="noreferrer noopener">0.1412 shares of ONEOK stock.</a>
This exchange ratio reflects EnLink&#8217;s closing price of $15.75 on November 22, 2024, divided by ONEOK&#8217;s 10-day volume-weighted average price (VWAP).
ONEOK will issue approximately 37 million shares, representing about 6% of its total shares outstanding after the transaction.
ONEOK, which holds approximately 44% of EnLink&#8217;s common units, has committed to voting in favor of the transaction.
The transaction, subject to customary closing conditions, is expected to close in the first quarter of 2025.
The merger&#8217;s completion requires approval from a majority of EnLink&#8217;s outstanding common units, including those owned by ONEOK, and satisfaction of other customary closing conditions.
Pierce H. Norton II, ONEOK president and chief executive officer, said, &#8220;This tax-free transaction to acquire the remaining outstanding EnLink units is expected to be accretive to ONEOK shareholders and provide EnLink unitholders with significantly greater trading liquidity and an attractive dividend yield.&#8221;&nbsp;&nbsp;
In October 15, 2024, ONEOK disclosed the successful completion of its acquisition of Global Infrastructure Partners&#8217; (GIP) entire interest in EnLink for a total cash <a target="_blank" href="https://www.benzinga.com/markets/equities/24/08/40626128/oneok-spends-3b-on-enlink-midstream-stake-2-6b-on-medallion" rel="noreferrer noopener">consideration of approximately&nbsp;$3.3 billion</a>.
Investors can gain exposure to the OKE stock via&nbsp;Global X MLP &amp; Energy Infrastructure ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MLPX#NYSE">MLPX</a>) and Tortoise North American Pipeline ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPYP#NYSE">TPYP</a>).
Price Action: ENLC shares are up 1.27% at $15.95 premarket at the last check Monday.
Photo via Shutterstock
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</ul>

<ul>
<li>Consideration of 0.1412 shares of ONEOK common stock&nbsp; for each outstanding publicly held EnLink common unit</li>
<li>On Oct. 15, 2024, ONEOK announced the successful completion of its acquisition of Global Infrastructure Partners' (GIP) entire interest in EnLink for a total cash consideration of approximately $3.3 billion.</li>
</ul>

Reported Sunday, ONEOK To Acquire Remaining EnLink Units In $4.3B Stock Deal, Strengthening Energy Midstream Operations

U.S. natural gas prices are on fire this month, surging by about 50% to reach $3.40 per million British thermal units as of Nov. 21, the highest level <a href="https://www.benzinga.com/24/11/42113449/natural-gas-prices-spike-to-over-1-year-highs-oil-surges-to-70-as-russia-fires-intercontinental-ballistic-missile-to-ukraine">in over a year.</a>
November is poised to mark the strongest surge in natural gas at the Henry Hub pricing point since July 2022, fueled by heightened geopolitical tensions, unseasonably cold U.S. weather and rising export demand.
For investors, this sharp price rebound has cast a spotlight on natural gas stocks poised to benefit from the renewed momentum in the natural gas markets.
<h1 class="wp-block-heading">Why Are Natural Gas Prices Spiking?</h1>
The price rally has been driven by a combination of factors:
<ul>
<li>Plunging Temperatures Across the U.S.: After a relatively warmer-than-average start to the winter, the situation has drastically changed over the past few weeks. The National Oceanic and Atmospheric Administration forecasts the first major snowfall of the season for parts of the central and northern Appalachians, with lower elevations in Pennsylvania and New York also bracing for accumulation. This colder weather has pushed demand for heating sharply higher.</li>
<li>Geopolitical Tensions Between Russia and Ukraine: Russia's launch of an intercontinental ballistic missile on Thursday, combined with Ukraine&#8217;s recent use of Western-made missiles to target Russian territory, has added a geopolitical risk premium to natural gas markets.</li>
<li>Supply Concerns in Europe: Austria&#8217;s OMV Group revealed earlier this month that it will stop receiving natural gas volumes from Russia&#8217;s Gazprom, reigniting fears of winter supply shortages in Europe and potentially shifting demand to the U.S. for liquefied natural gas (LNG) exports.</li>
</ul>
<h1 class="wp-block-heading">7 Natural Gas Stocks Benefiting From The Rally</h1>
As natural gas prices rally, several U.S. energy companies stand to gain from higher commodity prices and increased demand. Here are seven stocks to watch:
<h4 class="wp-block-heading">1. EQT Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQT#NYSE">EQT</a>)</h4>
EQT is the largest natural gas producer in the U.S., with operations in the Appalachian Basin. The company benefits directly from higher domestic gas prices.
Shares of EQT Corp. are up 30% month-to-date, on track for their strongest performing month since March 2022. 
<h4 class="wp-block-heading">2. ONEOK, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKE#NYSE">OKE</a>)</h4>
As a midstream operator, ONEOK processes and transports natural gas, profiting from higher pipeline volumes as demand increases.
Shares of ONEOK Inc. are up 19.6% in November, eyeing their best monthly performance since November 2020. 
<h4 class="wp-block-heading">3. Targa Resources Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRGP#NYSE">TRGP</a>)</h4>
Targa specializes in natural gas gathering and processing, positioning it to benefit from both domestic demand and export growth.
Targa shares have rallied 24% this month, on track to notch the 10th straight positive month and the strongest one in four years.
<h4 class="wp-block-heading">4. Kinder Morgan, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMI#NYSE">KMI</a>)</h4>
One of the largest pipeline operators in the U.S., Kinder Morgan&#8217;s infrastructure is critical for natural gas transportation across regions.
Kinder Morgan has seen its stock rally 16% in November, potentially positioned for the best month since November 2020. 
<h4 class="wp-block-heading">5. Antero Resources Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AR#NYSE">AR</a>)</h4>
Focused on natural gas and liquids production, Antero Resources has significant exposure to the Appalachia region, where colder weather is driving demand.
Shares of Antero Resources have soared 32% month-to-date, following a 9.7% drop in October. 
<h4 class="wp-block-heading">6. Cheniere Energy, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LNG#NYSE">LNG</a>)</h4>
As the top exporter of liquefied natural gas from the U.S., Cheniere benefits from global demand for natural gas, particularly in Europe.
Cheniere Energy has gained 16% thus far this month. 
<h4 class="wp-block-heading">7. Williams Companies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMB#NYSE">WMB</a>)</h4>
Williams operates natural gas infrastructure and transmission pipelines, playing a vital role in connecting supply to end markets.
Shares are up 13.6% in November, following a 14.7% surge in October. 
<h1 class="wp-block-heading">Chart: US Natural Gas Stocks Rallied In November</h1>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="501" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/21105956/image-221-1024x501.png" alt="" class="wp-image-659155" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/21105956/image-221-1024x501.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/21105956/image-221-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/21105956/image-221-768x376.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/21105956/image-221-1536x752.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/21105956/image-221.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h1 class="wp-block-heading">EIA Natural Gas Outlook: Winter Demand and LNG Exports To Support Prices</h1>
The EIA's latest Short-Term Energy Outlook (STEO) is bullish about near-term natural price gains, supported by robust winter demand and growing LNG exports.
With colder-than-expected weather forecasted for the season, the EIA has increased its consumption estimates, particularly in residential and commercial sectors where heating needs dominate. Residential and commercial demand is now expected to average 36 billion cubic feet per day (Bcf/d), representing a 4% increase from last winter.
In 2025, U.S. marketed natural gas production is projected to grow by 1%, with the Permian Basin leading the way with a 6% increase, followed by a 5% rise in output from the Eagle Ford region. 
The EIA anticipates Henry Hub natural gas prices — as tracked by the United States Natural Gas Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNG#NYSE">UNG</a>) – to climb steadily in early 2025, averaging $2.80 per million British thermal units in the first quarter and $2.90/MMBtu for the entire year. This represents a significant 33% increase compared to the 2024 average of $2.20/MMBtu.
Liquefied natural gas exports are expected to play a critical role in driving demand next year, with exports projected to increase by nearly 2 Bcf/d in 2025. The growth in LNG capacity, coupled with sustained international demand, further strengthens the outlook for higher natural gas prices in the coming year.
<h1 class="wp-block-heading">Goldman Sachs Natural Gas Outlook: $4.00 Delayed Until 2026</h1>
Goldman Sachs offers a more cautious perspective on natural gas prices, citing delays in the construction and operation of new LNG export facilities across the Americas.
According to analyst Samantha Dart, these delays are expected to soften the trajectory of U.S. natural gas price increases and could hinder Europe's ability to replenish its gas storage levels for the 2025 season.
Goldman Sachs revised its 2025 Henry Hub price forecast downward to $3/MMBtu, from a previous estimate of $3.40/MMBtu.
The bank also pushed its projection for U.S. natural gas prices to hit $4/MMBtu to 2026, postponing it from the fourth quarter of 2025. 
The firm indicates that while slower U.S. LNG export growth might ease domestic price pressures temporarily, it poses challenges for Europe, which will have fewer LNG cargoes at its disposal to fill storage next summer. 
Read Next:
<ul>
<li><a href="https://www.benzinga.com/24/11/42112078/international-criminal-court-issues-arrest-warrants-for-netanyahu-gallant">International Criminal Court Issues Arrest Warrants For Israeli Prime Minister Netanyahu, Gallant For War Crimes</a></li>
</ul>
Photo: Shutterstock

Upon closing of this transaction, the net proceeds from the sale are expected to enhance ONEOK's financial flexibility and ONEOK's deleveraging trend toward its previously announced target of 3.5 times during 2026.
 &nbsp;

Asset Sales

ONEOK Agrees To Sell Its Three Wholly Owned Interstate Natural Gas Pipeline Systems To DT Midstream For Total Cash Consideration Of $1.2B

DT Midstream To Acquire Portfolio Of Three Natural Gas Transmission Pipelines From ONEOK For $1.2B

UBS analyst Brian Reynolds maintains ONEOK (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKE#NYSE">OKE</a>) with a Buy and raises the price target from $112 to $132.

UBS Maintains Buy on ONEOK, Raises Price Target to $132

ONEOK's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKE#NYSE">OKE</a>) short percent of float has risen 15.18% since its last report. The company recently reported that it has 11.28 million shares sold short, which is 2.2% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.77 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>ONEOK Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1731512718_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for ONEOK has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing ONEOK's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, ONEOK's peer group average for short interest as a percentage of float is 4.24%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

How Is The Market Feeling About ONEOK?

In the current session, the stock is trading at $105.86, after a 1.65% spike. Over the past month, ONEOK Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKE#NYSE">OKE</a>) stock increased by 9.98%, and in the past year, by 64.32%. With performance like this, long-term shareholders are optimistic but others are more likely to look into the price-to-earnings ratio to see if the stock might be overvalued.

<img src="https://www.benzinga.com/files/images/story/2024/1731085403_0.png" alt="Past Year Chart" />

<h3>ONEOK P/E Ratio Analysis in Relation to Industry Peers</h3>
The P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company's current performance against it's past earnings, historical data and aggregate market data for the industry or the indices, such as S&amp;P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also could indicate that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future. 
ONEOK has a better P/E ratio of 22.06 than the aggregate P/E ratio of 17.05 of the Oil, Gas &amp; Consumable Fuels industry. Ideally, one might believe that ONEOK Inc. might perform better in the future than it's industry group, but it's probable that the stock is overvalued. 

<img src="https://www.benzinga.com/files/images/story/2024/1731085403_1.png" alt="Guage" />

In summary, while the price-to-earnings ratio is a valuable tool for investors to evaluate a company's market performance, it should be used with caution. A low P/E ratio can be an indication of undervaluation, but it can also suggest weak growth prospects or financial instability. Moreover, the P/E ratio is just one of many metrics that investors should consider when making investment decisions, and it should be evaluated alongside other financial ratios, industry trends, and qualitative factors. By taking a comprehensive approach to analyzing a company's financial health, investors can make well-informed decisions that are more likely to lead to successful outcomes.

Intraday Update

P/E Ratio Insights for ONEOK

ONEOK (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKE#NYSE">OKE</a>) has outperformed the market over the past 20 years by 2.15% on an annualized basis producing an average annual return of 10.49%. Currently, ONEOK has a market capitalization of $59.74 billion. 
Buying $1000 In OKE: If an investor had bought $1000 of OKE stock 20 years ago, it would be worth $7,239.04 today based on a price of $102.27 for OKE at the time of writing.
<h3>ONEOK's Performance Over Last 20 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1730916123_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$1000 Invested In This Stock 20 Years Ago Would Be Worth $7,200 Today

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CTRA

DINO

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WFRD

Shares of oil and fossil fuel companies are trading higher following the US presidential election. Investors may be weighing the potential impact of Donald Trump's energy policies on the sector.

As the utility market experiences rapid growth, fueled by rising energy demand and technological advancements, fundamentally solid utility stocks such as ONEOK (OKE), FirstEnergy (FE), and UGI Corporation (UGI) are capturing investor interest for consistent income. Read further... The utility market is experiencing significant growth, driven by the increasing demand for energy efficiency, the adoption of smart grid technologies, and advancements in predictive maintenance.
This expansion presents opportunities for top utility stocks ONEOK, Inc. (<a href="https://stocknews.com/stock/OKE/">OKE</a>), FirstEnergy Corp. (<a href="https://stocknews.com/stock/FE/">FE</a>), and UGI Corporation (<a href="https://stocknews.com/stock/UGI/">UGI</a>). These companies also offer attractive dividends.
Emerging winter season and trends like the increasing use of smart water meters, advanced metering infrastructure (AMI), and AI integration are boosting the utility industry. Additionally, the rising demand for sustainability and regulatory compliance is driving the adoption of analytics solutions that support green energy and efficient resource management. The global utility and energy analytics are valued at <a href="https://www.imarcgroup.com/utility-energy-analytics-market">$3.40 billion in 2023</a> and are projected to grow to $13.40 billion by 2032, at a CAGR of 15.9%.
As utilities continue to adopt data-driven approaches, the sector is set for further growth, improving efficiency, reliability, and sustainability in the energy landscape.
Considering these positive trends, let's delve deeper into <a href="https://stocknews.com/category/utilities-domestic/">Utilities – Domestic</a> stocks:
Stock #3: ONEOK, Inc. (<a href="https://stocknews.com/stock/OKE/">OKE</a>)
OKE offers natural gas, natural gas liquids (NGLs), refined petroleum products, and related midstream services, including transportation, storage, and marketing. Its products and services cater to exploration and production companies, utilities, industrial firms, distributors, and exporters.
It pays an annual dividend of $ 3.96, which translates to a dividend yield of 4.06% at the prevailing price levels. Its four-year average dividend yield is 5.93%. The company has grown its dividend payment at a <a href="https://www.investopedia.com/terms/c/cagr.asp">CAGR</a> of 2.3% over the past five years.
On December 4, OKE successfully completed MB-6, a 125,000-barrel-per-day natural gas liquids (NGL) fractionator in Mont Belvieu, Texas. The company also announced the full looping of its West Texas NGL Pipeline system, enhancing capacity and efficiency in its operations.
On November 24, OKE and EnLink Midstream, LLC (<a href="https://stocknews.com/stock/ENLC/">ENLC</a>) entered into a definitive merger agreement. Under the terms, OKE will acquire all outstanding publicly held common units of ENLC in an all-stock transaction valued at $4.30 billion.
In the fiscal third quarter that ended September 30, 2024, OKE's total revenues increased 19.9% year-over-year to $5.02 billion. Its operating income grew 52.6% from the year-ago value to $1.13 billion. In addition, the company's net income available to common shareholders and earnings per common share came in at $ 692 million and $1.18, up 52.8% and 19.2% over the prior-year quarter, respectively.
Street expects OKE's revenue and EPS for the fourth quarter ending December 31, 2024, to increase 30.5% and 29.8% year-over-year to $6.83 million and $1.53, respectively.
Over the past year, the stock has gained 41.3% to close the last trading session at $97.66. It soared 39.1% year-to-date.
OKE's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its robust outlook. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
OKE has an A grade for Momentum and a B in Growth. It is ranked #12 out of 57 stocks in the <a href="https://stocknews.com/category/utilities-domestic/">Utilities – Domestic</a> industry.
Beyond what we have stated above, we also have given OKE grades for Value, Stability, Sentiment, and Quality. Get all the OKE's ratings <a href="https://stocknews.com/stock/OKE/">here</a>.
Stock #2: UGI Corporation (<a href="https://stocknews.com/stock/UGI/">UGI</a>)
UGI delivers propane, LPG, natural gas, liquid fuels, and electricity, serving residential, commercial, industrial, agricultural, and wholesale customers. It also provides energy storage, transportation, and infrastructure services in the U.S. and globally.
It pays an annual dividend of $1.50, which translates to a dividend yield of 5.61% at the prevailing price levels, higher than the four-year average dividend yield of 4.53%. The company has grown its dividend payment at a CAGR of 4.4% over the past five years.
In the fiscal year ended September 30, 2024, UGI's revenues were $7.21 billion. Its operating income was $770 million, compared to a loss of $1.44 billion in the prior year. While its net income attributable to UGI Corporation stood at $269 million, compared to a loss of $1.50 billion in the prior year. Its adjusted diluted EPS came in at $3.06, up 7.7% over the prior-year.
Street expects UGI's revenue for the fiscal year (ending September 30, 2025) to increase 28.5% year-over-year to $ 9.27 billion. Its EPS for the same year is $2.91. In addition, it surpassed the consensus EPS estimates in three of the trailing four quarters.
Shares of UGI have gained 16.1% over the past year and is up 10.2% year-to-date to close the last trading session at $ 27.11.
UGI's POWR Ratings reflect its robust outlook. UGI has a B grade in Growth and Quality. It is ranked #9 in the same industry.
To access UGI's Value, Momentum, Stability, and Sentiment ratings, click <a href="https://stocknews.com/stock/UGI/">here</a>.
Stock #1: FirstEnergy Corp. (<a href="https://stocknews.com/stock/FE/">FE</a>)
FE generates, transmits, and distributes electricity through coal, nuclear, hydroelectric, wind, and solar facilities. Serving around 6 million customers across six U.S. states, it operates extensive transmission and distribution networks.
On December 18, FE declared a quarterly dividend of $0.425 per share on its common stock. The dividend will be payable on March 1, 2025. It pays an annual dividend of $ 1.70, which translates to a dividend yield of 4.34% at the prevailing price levels.
Its four-year average dividend yield is 4.10. The company has grown its dividend payment at a CAGR of 2.1% over the past five years.
On December 5, Jersey Central Power &amp; Light (JCP&amp;L), an FE subsidiary, announced that it had began infrastructure upgrades in three Morris County, NJ communities as part of its New Jersey Reliability Improvement Project. These upgrades are aimed at enhancing electric reliability and are expected to conclude by October 2025.
FE's total revenues increased 5.7% year-over-year to $ 3.70 billion in the fiscal third quarter that ended on September 30, 2024. In addition, the company's earnings from continuing operations $ 419 million and non-GAAP operating EPS were $0.85.
Street expects FE's revenue for the fiscal fourth quarter (ending December 31, 2024) to increase 17.2% year-over-year to $3.69 billion. Its EPS for the same quarter is expected to grow 11.6% from the prior year to $0.69. In addition, it surpassed the consensus EPS estimates in three of the trailing four quarters.
Shares of FE have gained 6.1% over the past year and is up 6.8% year-to-date to close the last trading session at $39.16.
FE's POWR Ratings reflect its robust outlook.
It has a B grade in Growth, Momentum, and Stability. It is ranked #4 in the same industry.
Click <a href="https://stocknews.com/stock/FE/">here</a> to see FE's ratings for Value, Sentiment, and Quality.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
OKE shares were unchanged in premarket trading Friday. Year-to-date, OKE has gained 46.00%, versus a 24.47% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Kritika Sarmah</h2> <img src='https:/wp-content/uploads/2022/08/Kritika-Sarmah_Image-3.jpg' style="float:left; padding:5px;width:125px;">Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities.<a href="https://stocknews.com/authors/?author=kritika-sarmah">More...</a>The post <a href=https://stocknews.com/news/oke-fe-ugiv-3-high-dividend-utility-stocks-for-reliable-income/>3 High-Dividend Utility Stocks for Reliable Income</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 High-Dividend Utility Stocks for Reliable Income

Big Dividends Ahead: Where I'd Invest $10,000 In 2025

The energy sector offers bright prospects for investors due to rising energy demand, lower borrowing costs, and strong growth in global oil and power consumption. Hence, high-dividend energy stocks like Enbridge (ENB), ONEOK (OKE), and Kinder Morgan (KMI), which offer dividend yields above 3%, make smart portfolio additions now. Keep reading... The energy sector continues to show optimism, with oil prices stabilizing within a narrow range, backed by consistent demand and solid inventory data. Additionally, anticipated interest rate cuts, leading to lower borrowing costs, are expected to drive economic growth and increase energy demand.
As a result, income-focused investors may find high-dividend energy stocks, such as Enbridge Inc. (<a href="https://stocknews.com/stock/ENB/">ENB</a>), ONEOK, Inc. (<a href="https://stocknews.com/stock/OKE/">OKE</a>), and Kinder Morgan, Inc. (<a href="https://stocknews.com/stock/KMI/">KMI</a>), offering yields above 3%, particularly attractive.
Energy demand, closely linked to economic growth, may rebound with lower interest rates and supportive fiscal policies. Despite uncertainties, the energy market remains resilient, adapting to geopolitical shifts and demand changes. A <a href="https://www.reuters.com/markets/commodities/oil-prices-little-changed-ahead-fed-rate-decision-2024-12-18/">4.69-million-barrel</a> draw in U.S. crude inventories signals strong consumption, while sanctions on Russian oil and tightening EU policies could create supply constraints, driving higher prices.
As businesses innovate to enhance infrastructure efficiency, global oil demand is expected to increase by 1.0 million b/d in 2024 and 1.2 million b/d in 2025. Likewise, Henry Hub natural gas prices are forecasted to reach <a href="https://www.eia.gov/outlooks/steo/">$2.80/MMBtu by early 2025</a>. Furthermore, the EIA projects that power demand will rise to 4.09 trillion kWh in 2024 and <a href="https://oilprice.com/Latest-Energy-News/World-News/US-Electricity-Consumption-Set-to-Hit-Record-Highs-in-2024-and-2025.html">4.17 trillion kWh in 2025</a>, signaling a promising future for the energy sector.
Considering these conducive trends, let's analyze the fundamental aspects of the three energy picks.
Enbridge Inc. (<a href="https://stocknews.com/stock/ENB/">ENB</a>)
Headquartered in Calgary, Canada, ENB and its subsidiaries operate as an energy infrastructure company. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services.
On December 3, 2024, ENB announced a quarterly dividend of $0.94 per common share, a 3% increase, payable on March 1, 2025. This marks the 30th consecutive year of dividend increases.
On October 7, 2024, ENB announced advancements in leveraging AI, in collaboration with Microsoft, to enhance safety, reduce emissions, and optimize assets. Key initiatives include real-time energy optimization, AI-powered pipeline monitoring, and intelligent automation for maintenance.
In terms of the trailing-12-month gross profit margin, ENB's 48.64% is 6.4% higher than the 45.74% industry average. Likewise, its 13.72% trailing-12-month net income margin is 19.7% higher than the 11.47% industry average. Furthermore, the stock's 7.86% trailing-12-month <a href="https://www.investopedia.com/terms/l/levered-free-cash-flow.asp">levered FCF</a> margin is 13.4% higher than the 6.93% industry average.
ENB pays an annual dividend of $2.65, which translates to a yield of 6.40% at the current share price. Its four-year average dividend yield is 6.86%. In addition, the company's dividend payouts have increased at a CAGR of 3.8% over the past five years. ENB has paid dividends for the past 10 years.
During the third quarter, which ended on September 30, ENB's adjusted EBITDA was C$4.20 billion ($2.94 billion), up 8.5% year-over-year. Similarly. its adjusted earnings and earnings per common share were C$1.19 billion ($833.09 million) and $0.55, respectively.
Street expects ENB's EPS for the quarter ending December 31, 2024, to increase 8.4% year-over-year to $0.52. Over the past six months, the stock has gained 18.8% to close the last trading session at $41.40.
ENB's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect strong prospects. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
ENB is ranked #31 out of 41 stocks in the A-rated <a href="https://stocknews.com/category/foreign-oil-gas/">Foreign Oil &amp; Gas</a> industry. It has an A grade for Momentum and a B for Stability. <a href="https://stocknews.com/stock/ENB/">Click here</a> to access additional ratings for ENB's Growth, Value, Sentiment, and Quality.
ONEOK, Inc. (<a href="https://stocknews.com/stock/OKE/">OKE</a>)
OKE engages in gathering, processing, fractionation, storage, transportation, and marketing of natural gas and natural gas liquids (NGL) in the United States. It operates through four segments: Natural Gas Gathering and Processing, Natural Gas Liquids, Natural Gas Pipelines, and Refined Products and Crude.
On December 4, 2024, OKE announced the completion of the MB-6 NGL fractionator, adding 125,000 bpd capacity, and the full looping of the West Texas NGL Pipeline system, expanding capacity to 515,000 bpd.
On November 24, 2024, OKE announced a $4.30 billion stock-for-stock acquisition of EnLink Midstream's outstanding publicly held common units, with each unit converted into 0.14 shares of OKE. The tax-free merger is expected to close in Q1 2025, enhancing value for stakeholders.
OKE's 16.87% trailing-12-month Return on Common Equity is 35.6% higher than the 12.44% industry average. Similarly, the stock's 5.48% trailing-12-month Return on Total Assets ratio is 7.9% higher than the 5.08% industry average. Its 22.89% trailing-12-month EBIT margin ratio is 17% higher than the 19.57% industry average.
OKE pays an annual dividend of $3.96, which translates to a yield of 3.89% at the current share price. Its four-year average dividend yield is 5.93%. Its dividend payouts have increased at a CAGR of 2.3% over the past five years. OKE has paid dividends for the past 26 years.
OKE's operating income for the third quarter that ended September 30, 2024, rose 52.6% year-over-year to $1.13 billion.  For the same quarter, OKE's net income came in at $693 million, up 52.6% from the prior year's quarter. In addition, the company's earnings per common share increased 19.2% year-over-year to $1.18.
For the quarter ending December 31, 2024, OKE's EPS and revenue are expected to increase 29.8% and 30.5% year-over-year to $1.53 and $6.83 billion, respectively. Over the past year, the stock has gained 49.8% to close the last trading session at $101.78.
OKE's POWR Ratings reflect its robust fundamentals. OKE has an A grade for Momentum and a B grade for Growth. Within the <a href="https://stocknews.com/category/utilities-domestic/">Utilities - Domestic</a> industry, it is ranked #12 out of 57 stocks. To see OKE's rating for Sentiment, Value, Stability, and Quality, <a href="https://stocknews.com/stock/OKE/">click here</a>.
Kinder Morgan, Inc. (<a href="https://stocknews.com/stock/KMI/">KMI</a>)
KMI operates as an energy infrastructure company primarily in North America. The company operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments.
In terms of the trailing-12-month EBIT margin, KMI's 28.39% is 45.1% higher than the 19.57% industry average. Likewise, its 43.36% trailing-12-month EBITDA margin is 25.9% higher than the 34.45% industry average. Also, the stock's 29.04% trailing-12-month Capex / Sales is 83.9% higher than the 15.79% industry average.
KMI has paid dividends for 13 consecutive years. Its annual dividend is $1.15, which translates to a yield of 4.32% at the current share price. Its four-year average dividend yield is 6.16%. Moreover, the company's dividend payouts have increased at a CAGR of 3.8% over the past five years.
In the third quarter that ended on September 30, 2024, KMI's revenues totaled $3.70 billion. The company's operating income increased 8.2% year-over-year to $1.02 billion. Additionally, its adjusted net income attributable to KMI was $557 million, while its adjusted EPS remained flat at $0.25 year-over-year.
Analysts expect KMI's EPS for the quarter ending December 31, 2024, to increase 17% year-over-year to $0.33. Its revenue for the same quarter is expected to grow 2.3% year-over-year to $4.13 billion. It surpassed the consensus EPS estimates in three of the trailing four quarters. Over the past year, KMI's stock has gained 52.1% to close the last trading session at $26.61.
KMI's positive outlook is reflected in its POWR Ratings. It has an A grade for Momentum. It is ranked #46 out of 76 in the <a href="https://stocknews.com/category/energy-oil-gas/">Energy – Oil &amp; Gas</a> industry. <a href="https://stocknews.com/stock/KMI/">Click here</a> to see KMI's ratings for Growth, Value, Stability, Sentiment, and Quality.
What To Do Next?
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<hr />
ENB shares . Year-to-date, ENB has gained 20.61%, versus a 24.51% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Abhishek Bhuyan</h2> <img src='https:/wp-content/uploads/2023/07/ABhuyan.jpg' style="float:left; padding:5px;width:125px;">Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments.<a href="https://stocknews.com/authors/?author=abhishek-bhuyan">More...</a>The post <a href=https://stocknews.com/news/enb-oke-kmi-3-high-dividend-energy-stocks-for-income-seekers/>3 High-Dividend Energy Stocks for Income Seekers</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 High-Dividend Energy Stocks for Income Seekers

ONEOK: A Solid Midstream Play

ONEOK,(OKE) and EnLink Midstream (ENLC) announced the filing of EnLink's definitive proxy materials with the U.S. Securities and Exchange Commissio...

Oneok, EnLink announce filing of EnLink's proxy materials with U.S. SEC

An update from Oneok ( ($OKE) ) is now available. ONEOK, Inc. and EnLink Midstream, LLC have announced the filing of definitive proxy materials wit...

ONEOK to Acquire Remaining EnLink Units by 2025

DT Midstream (DTM) closed on the acquisition of a portfolio of three FERC-regulated natural gas transmission pipelines from ONEOK (OKE), effective ...

DT Midstream closes Midwest pipeline acquisition

ONEOK (OKE) announced that it has closed the sale of its three wholly owned interstate natural gas pipeline systems to DT Midstream (DTM), effectiv...

ONEOK closes sale of natural gas pipelines to DT Midstream for $1.2B

According to "experts" 2024 would be a doom and gloom year for investors. Instead the S&P500 ended the year up 23.3% and my portfolio enjoyed a 41.5% gain.  Those performances deserve a look in the rear view mirror.

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ONEOK Foundation Donates $100,000 to Wildfire Disaster Relief Program

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ONEOK Announces Completion of NGL Fractionation and Pipeline Expansion Projects

ONEOK to Participate in Investor Conference

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