ONEOK Inc. (OKE) Targets Growth Amid Competitive Pipeline Sector

Publication Date: 2025-07-15 13:07:22

ONEOK Inc. (NYSE:OKE), a significant player in the natural gas industry, is strategically expanding its operations through targeted acquisitions and substantial capital investments. The company, which focuses on gathering, processing, storage, and transportation of natural gas, is navigating a competitive pipeline sector by bolstering its market position and operational footprint.

Analyst Outlook and Price Target

On July 15, 2025, Holly Stewart, an analyst from Scotiabank, set a price target of $92 for OKE. This target suggests a potential upside of approximately 12.77% from the stock's current trading price of $81.58. This optimistic forecast is underpinned by ONEOK's strategic maneuvers, including the acquisition of EnLink Midstream and gaining full control of Delaware G, which have significantly enhanced its presence in high-production regions.

Strategic Growth Initiatives

ONEOK's growth strategy is heavily centered on increasing its fee-based earnings, with projections indicating that 90% of its revenue will stem from these sources in 2025. To further solidify its operational capabilities and maintain competitiveness, the company plans to invest between $2.8 billion and $3.2 billion in capital projects. These investments are deemed crucial for sustaining its market position within the pipeline business, where ONEOK currently holds a Zacks Rank #3 (Hold).

Market Performance and Valuation

As of the latest trading session, ONEOK's stock price stands at $81.58, reflecting a slight increase of 0.30% for the day. Intraday trading saw the stock fluctuate between $80.73 and $81.68. The company commands a market capitalization of approximately $50.96 billion. Over the past year, OKE has experienced notable volatility, with its stock price ranging from a high of $118.07 to a low of $75.47.