Oneok

ONEOK Inc. (NYSE: OKE) stands as one of the leading midstream energy companies in North America, headquartered in Tulsa, Oklahoma. With a history spanning over a century since its founding in 1906, ONEOK has evolved from a local natural gas distribution utility into a diversified energy infrastructure powerhouse operating one of the largest natural gas liquids (NGL) systems in the United States. As of 2024, the company employs approximately 5,177 people and maintains a market capitalization of $43.641 billion, reflecting its position as a major player in the North American energy infrastructure landscape.

ONEOK's extensive infrastructure network encompasses approximately 38,000 miles of pipeline and more than 60 processing plants strategically positioned across key energy-producing regions. The company operates through four primary business segments: natural gas liquids, natural gas gathering and processing, natural gas pipelines, and refined products and crude oil. This diversified business model provides multiple revenue streams and positions ONEOK to serve critical functions across the energy value chain, from wellhead gathering to final delivery of processed products to end markets.

The company's natural gas liquids segment represents a core competency, with ONEOK operating one of the most extensive NGL systems in the nation. This system gathers raw natural gas liquids from processing plants, fractionates them into individual NGL products (ethane, propane, butane, and natural gasoline), and transports them to key market centers and petrochemical facilities. Major pipeline assets include the Arbuckle Pipeline, Elk Creek Pipeline, and the recently acquired Gulf Coast NGL Pipelines, which collectively connect prolific production basins to Gulf Coast petrochemical markets and export terminals.

In natural gas gathering and processing, ONEOK provides essential midstream services in major production basins including the Williston Basin (Bakken), Permian Basin, Mid-Continent, and Rocky Mountain regions. The company's processing plants extract NGLs from raw natural gas streams, producing pipeline-quality natural gas for delivery to interstate pipelines while capturing valuable NGL products. This segment has expanded significantly through strategic acquisitions, particularly the transformative purchases of Medallion Midstream and EnLink Midstream in late 2024 and early 2025.

The natural gas pipelines segment operates both wholly owned assets and joint venture interests in interstate pipelines. ONEOK holds 50% ownership interests in the Northern Border Pipeline and Roadrunner Gas Transmission Pipeline, complementing its intrastate transmission network. The company operates 5,200 miles of state-regulated intrastate pipelines with peak transportation capacity of 4.3 Bcf/d and seven underground storage facilities with 61 Bcf of total active working storage capacity. In December 2024, ONEOK completed the strategic divestiture of three interstate pipeline systems (Guardian Pipeline, Midwestern Gas Transmission, and Viking Gas Transmission) to DT Midstream for $1.2 billion, streamlining its portfolio to focus on higher-growth opportunities.

ONEOK's refined products and crude oil segment, significantly enhanced by the September 2023 acquisition of Magellan Midstream Partners for $18.8 billion, provides transportation, storage, and distribution services for refined petroleum products and crude oil. This segment operates extensive pipeline networks and terminal facilities serving key markets across the central United States, connecting refineries to distribution terminals and end-use markets.

The company's strategic focus centers on the Permian Basin, America's most prolific oil and gas producing region. Through its 'wellhead-to-water' strategy, ONEOK aims to provide integrated services from wellhead gathering through processing, fractionation, and pipeline transportation to Gulf Coast markets. The acquisitions of Medallion Midstream (completed October 2024) and EnLink Midstream (completed January 2025) for a combined $5.9 billion dramatically expanded ONEOK's Permian presence, adding critical gathering and processing infrastructure that complements existing NGL pipelines.

ONEOK's business model emphasizes fee-based revenue, with approximately 75% of earnings derived from fee-based contracts that provide relatively stable cash flows insulated from commodity price volatility. This fee-based approach, combined with long-term customer contracts and strategically positioned infrastructure assets, generates consistent cash flow that supports a strong dividend program. In January 2025, ONEOK increased its quarterly dividend by 4% to $1.03 per share ($4.12 annualized), continuing a track record of dividend growth that appeals to income-focused investors.

Financial performance in 2024 demonstrated the benefits of ONEOK's growth strategy. The company reported full-year 2024 revenue of $21.70 billion, an increase of 22.75% compared to $17.68 billion in 2023, with earnings of $3.03 billion representing 14.15% growth. Third-quarter 2024 results showed net income of $693 million ($1.18 per diluted share) and adjusted EBITDA of $1.55 billion. The company achieved 12% Q2 2025 EBITDA growth to $1.98 billion, demonstrating operational momentum from recent acquisitions. Strong financial discipline was evident in $600 million of debt repayment, reducing leverage ratios post-acquisition.

Looking forward, ONEOK's consolidated 2024 net income guidance range was $2.895 billion to $3.095 billion, with adjusted EBITDA guidance of $6.525 billion to $6.725 billion. CEO Pierce H. Norton II stated that 'ONEOK's strong performance in 2024 was driven by contributions from multiple strategic acquisitions, volume growth and fee-based earnings,' highlighting the company's successful execution of its growth strategy. With EBITDA of $6.2 billion, a strong return on equity of 18%, and positioning as one of the largest diversified energy infrastructure companies in North America, ONEOK is well-positioned to capitalize on growing demand for energy infrastructure services driven by increased natural gas production, NGL export growth, and domestic petrochemical expansion.