IntrinsicIntrinsic
← All summaries

ONEOK INC /NEW/

OKE
Financials & Chart →

Business Summary

ONEOK, Inc. is a leading midstream service provider of gathering, processing, fractionation, transportation, storage and marine export services, operating as one of the largest integrated energy infrastructure companies in North America with an approximately 60,000-mile pipeline network that transports natural gas, NGLs, Refined Products and crude oil. The midstream value chain is a vital part of the energy industry, and for transportation of crude oil, natural gas, Refined Products and NGLs, pipelines are generally the most reliable, lowest cost, least carbon intensive and safest alternative for intermediate and long-haul movements between markets and end users.

The company competes for natural gas, NGL, Refined Products and crude oil volumes with other midstream companies, major integrated oil companies and independent exploration and production companies that have gathering and processing assets, fractionators, pipelines, terminals and storage facilities. ONEOK has remained competitive by executing strategic acquisitions, making capital investments to access and connect new supplies with end-user demand, increasing gathering, processing, fractionation and pipeline capacity, increasing storage, withdrawal and injection capabilities, and improving operating efficiency, and believes its assets are located strategically, connecting diverse supply areas to market and demand centers.

ONEOK generates revenue primarily through fee-based services and commodity sales across four reportable segments: Natural Gas Gathering and Processing, Natural Gas Liquids, Natural Gas Pipelines, and Refined Products and Crude. The company's consolidated earnings were approximately 90% fee-based in 2025 , and its business model is designed to reduce exposure to direct commodity price volatility, with primary customer segments including major and independent crude oil and natural gas producers, petrochemical companies, propane distributors, utilities, and large industrial companies.

The Natural Gas Gathering and Processing segment provides midstream services to producers in the Rocky Mountain region, Mid-Continent region, and Permian Basin, with more than 3 million dedicated acres in the Williston Basin, more than 300 thousand dedicated acres in the Powder River Basin, more than 1 million dedicated acres in the Mid-Continent region, and more than 400 thousand dedicated acres in the Permian Basin . This segment includes 22,600 miles of natural gas gathering pipelines and natural gas processing plants with 1.9 Bcf/d of processing capacity in the Rocky Mountain region, 3.5 Bcf/d in the Mid-Continent region and 1.8 Bcf/d of processing capacity in the Permian Basin, which were 78% and 84% utilized in 2025 and 2024, respectively . The Natural Gas Liquids segment includes 10,100 miles of gathering pipelines, 4,800 miles of distribution pipelines, NGL fractionators with combined operating capacity of 1.2 MMBbl/d including 310 MBbl/d in the Mid-Continent region and 890 MBbl/d in the Gulf Coast region which were 94% and 92% utilized in 2025 and 2024, respectively, one isomerization unit with operating capacity of 10 MBbl/d, one ethane/propane splitter with operating capacity of 40 MBbl/d, NGL storage facilities with operating storage capacity of 40 MMBbl, and eight Purity NGLs terminals . The Natural Gas Pipelines segment includes 8,300 miles of natural gas pipelines which were 91% and 97% subscribed in 2025 and 2024, respectively, and eleven underground natural gas storage facilities with 74 Bcf of total active working natural gas storage capacity which were 83% and 75% subscribed in 2025 and 2024, respectively . The Refined Products and Crude segment includes 9,800 miles of Refined Products pipelines, 1,100 miles of crude oil transportation pipelines, 2,100 miles of crude oil gathering pipelines, 53 Refined Products terminals, two marine terminals, and 100 MMBbl of operating storage capacity .

In the Natural Gas Gathering and Processing segment, adjusted EBITDA increased $654 million in 2025 compared with 2024, due primarily to a full year of earnings from EnLink and higher volumes in the Mid-Continent and Rocky Mountain regions, offset partially by lower realized NGL prices, net of hedging, and the impact from the divestiture of certain nonstrategic assets in 2024. In the Natural Gas Liquids segment, adjusted EBITDA increased $236 million in 2025 compared with 2024, due primarily to a full year of earnings from EnLink, higher exchange services and higher optimization and marketing, offset partially by higher operating costs. In the Natural Gas Pipelines segment, adjusted EBITDA decreased $39 million in 2025 compared with 2024, due primarily to the impact of the interstate pipeline divestiture in 2024, offset partially by a full year of earnings from EnLink in 2025 and higher optimization and marketing. In the Refined Products and Crude segment, adjusted EBITDA increased $285 million in 2025 compared with 2024, due primarily to a full year of earnings from Medallion and EnLink and lower operating costs, offset partially by lower earnings on BridgeTex associated with the nonrecurring recognition of deferred revenue in 2024.

On January 31, 2025, ONEOK completed the EnLink Acquisition, issuing 41 million shares of common stock with a fair value of $4.0 billion as of the closing date. On May 28, 2025, ONEOK completed the Delaware Basin JV Acquisition for $941 million , paying $550 million in cash and issuing approximately 4.9 million shares of ONEOK common stock to the seller with a fair value of $391 million as of the closing date. On July 22, 2025, ONEOK completed the BridgeTex Additional Interest Acquisition, paying approximately $270 million in cash, and now has a 60% ownership interest in BridgeTex. In August 2025, ONEOK announced plans to construct the Bighorn natural gas processing plant in the Permian Basin with processing capacity of 300 MMcf/d expected to cost approximately $365 million and be completed in mid-2027. In February 2025, ONEOK announced definitive agreements to form joint ventures with MPLX LP to construct a 400 MBbl/d liquified petroleum gas export terminal in Texas City, Texas, and a new 24-inch pipeline from its Mont Belvieu, Texas, storage facility to the new terminal, with expected total investment of approximately $1.0 billion and completion expected in early 2028. In 2025, ONEOK, WhiteWater, MPLX LP and Enbridge Inc. announced the new approximately 450-mile, 48-inch Eiger Express Pipeline designed to transport up to approximately 3.7 Bcf/d of natural gas from the Permian Basin to Katy, Texas, with expected total investment of approximately $350 million and completion expected in mid-2028. In August 2025, ONEOK completed an underwritten public offering of $3.0 billion senior unsecured notes. During 2025, ONEOK repurchased $62 million of its outstanding common stock under its $2.0 billion share repurchase program authorized in January 2024.

Total revenues for 2025 were $33.629 billion compared to $21.698 billion in 2024 and $17.677 billion in 2023. Net income attributable to ONEOK was $3.393 billion in 2025, compared to $3.035 billion in 2024 and $2.659 billion in 2023. Diluted EPS was $5.42 in 2025, compared to $5.17 in 2024 and $5.48 in 2023. Operating income was $5.741 billion in 2025, compared to $4.989 billion in 2024 and $4.072 billion in 2023. Adjusted EBITDA was $8.020 billion in 2025, compared to $6.784 billion in 2024 and $5.243 billion in 2023. Cash provided by operating activities was $5.599 billion in 2025, compared to $4.888 billion in 2024 and $4.421 billion in 2023.

Business Outlook

ONEOK expects total capital expenditures of $2.7 - $3.2 billion in 2026. In January 2026, the Board of Directors increased the quarterly dividend to $1.07 per share , an increase of 4% compared with the same quarter in the prior year, representing $4.28 per share on an annualized basis .

In the Natural Gas Gathering and Processing segment, ONEOK is relocating a 150 MMcf/d processing plant to the Permian Basin from North Texas, expected to be completed in the first quarter of 2026, and expanding two existing facilities in the Permian Basin which will provide an incremental 110 MMcf/d of processing capacity expected to be completed in the third quarter of 2026. The Bighorn natural gas processing plant with processing capacity of 300 MMcf/d is expected to cost approximately $365 million and be completed in mid-2027, supported by acreage dedications with long-term primarily fee-based contracts.

In the Natural Gas Liquids segment, ONEOK completed construction of the Elk Creek pipeline expansion project in 2025, which increased capacity to 435 MBbl/d and brought total pipeline capacity out of the Rocky Mountain region to 575 MBbl/d . The Texas City Logistics and MBTC Pipeline joint ventures with MPLX LP to construct a 400 MBbl/d liquified petroleum gas export terminal in Texas City, Texas, and a new 24-inch pipeline from Mont Belvieu, Texas, storage facility to the new terminal are expected to involve total investment of approximately $1.0 billion and be completed in early 2028. The Medford fractionator rebuild project for the 210 MBbl/d NGL fractionation facility in Medford, Oklahoma, is expected to cost approximately $485 million and be completed in two phases, with the first phase expected in the fourth quarter of 2026 and the second phase in the first quarter of 2027.

In the Natural Gas Pipelines segment, the Eiger Express Pipeline, an approximately 450-mile, 48-inch pipeline designed to transport up to approximately 3.7 Bcf/d of natural gas from the Permian Basin to Katy, Texas, is expected to involve total investment of approximately $350 million and be completed in mid-2028. The Jefferson Island Storage Hub facility in Louisiana is being expanded to increase working gas storage capacity from 2 Bcf to 11 Bcf , expected to be completed in two phases with the first phase in the second half of 2028 and the second phase in early 2029.

In the Refined Products and Crude segment, the greater Denver area Refined Products pipeline expansion project includes construction of a new 230-mile, 16-inch diameter pipeline from Scott City, Kansas, to DIA and the addition or upgrading of certain pump stations, increasing total system capacity by 35 MBbl/d with additional expansion capabilities, expected to cost approximately $480 million and be completed in mid-2026, fully subscribed under long-term contracts.

ONEOK expects its internally generated cash flows will allow it to fund high-return capital projects in its existing operating regions, grow its dividend, reduce debt and fund its $2.0 billion share repurchase program. The company expects total capital expenditures of $2.7 - $3.2 billion in 2026. In January 2026, the Board of Directors increased the quarterly dividend to $1.07 per share , an increase of 4% compared with the same quarter in the prior year. As of December 31, 2025, ONEOK had $78 million of cash and cash equivalents on hand and $3.5 billion of available capacity under its $3.5 Billion Credit Agreement. As of February 16, 2026, no shares have been sold through the $1.0 billion at-the-market equity program.

ONEOK faces structural headwinds including the volatility of natural gas, NGL, Refined Products and crude oil prices, which could reduce drilling and production activity and decrease demand for its services. The company's Natural Gas Gathering and Processing and Natural Gas Liquids segments are exposed to volumetric risk as a result of drilling and completion activity, severe weather disruptions, operational outages, global crude oil, NGL and natural gas demand and normal volumetric well declines, while the Refined Products and Crude segment is exposed to volumetric risk due to demand for Refined Products and crude oil in the markets it serves.

ONEOK faces execution risks related to constructing new pipelines and facilities, including that projects may require significant capital expenditures which may exceed estimates, involve numerous regulatory, environmental, political, legal and weather-related uncertainties, and may not be completed on schedule or at budgeted cost. The company also faces risks from inflationary pressures that have resulted in, and may continue to result in, additional increases to the cost of materials, services and personnel, which could increase capital expenditures and operating costs, and future tariffs, trade restrictions or retaliatory measures could further increase input costs, lengthen delivery schedules or disrupt the availability of key components.

Risk Factors

If the level of drilling in the regions in which ONEOK operates declines substantially near its assets, volumes and revenues could decline, as gathering and transportation pipeline systems are dependent upon production from natural gas and crude oil wells which naturally decline over time. The volatility of natural gas, NGL, Refined Products and crude oil prices could adversely affect earnings and cash flows, as lower commodity prices could reduce crude oil, natural gas and NGL production and decrease demand for services, while a portion of revenues are derived from the sale of commodities received or purchased in conjunction with services. ONEOK's operations are subject to operational hazards and unforeseen interruptions including leaks, pipeline ruptures, damage by third parties, adverse weather conditions, and catastrophic events, and the company is not fully insured against all risks inherent to its business. A breach of information security, including a cybersecurity attack, or failure of one or more key information technology or operational systems, or those of third parties, may adversely affect operations, financial results or reputation. As of December 31, 2025, ONEOK had total indebtedness of $34.0 billion , and its indebtedness and guarantee obligations could impair financial condition and ability to fulfill obligations, including making it more difficult to satisfy obligations with respect to senior notes and other indebtedness.

Management Priorities

Management's message emphasizes that ONEOK delivered earnings growth across its value chain over the past year due primarily to a full year of earnings from EnLink and Medallion across its segments and higher NGL and natural gas processing volumes. Management states that with the company's large asset base, multi-basin exposure and continued asset integration, most of its growth opportunities are not contingent on improving commodity prices. The strategic priorities emphasized for the period ahead include maintaining prudent financial strength and flexibility, focusing on capital projects that provide value-added products and services that contribute to long-term growth, profitability and business diversification, and maximizing total shareholder return through high-return capital projects, increasing the dividend, and repurchasing shares under the $2.0 billion share repurchase program. In January 2026, the Board of Directors increased the quarterly dividend to $1.07 per share , an increase of 4% compared with the same quarter in the prior year.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Executive Summary
  2. [2] Item 1, Business — Natural Gas Gathering and Processing
  3. [3] Item 1, Business — Natural Gas Gathering and Processing
  4. [4] Item 1, Business — Natural Gas Liquids
  5. [5] Item 1, Business — Natural Gas Pipelines
  6. [6] Item 1, Business — Refined Products and Crude
  7. [7] Item 7, MD&A — Natural Gas Gathering and Processing
  8. [8] Item 7, MD&A — Natural Gas Liquids
  9. [9] Item 7, MD&A — Natural Gas Pipelines
  10. [10] Item 7, MD&A — Refined Products and Crude
  11. [11] Item 7, MD&A — Recent Developments; Item 8, Note B — Acquisitions and Divestitures
  12. [12] Item 7, MD&A — Recent Developments; Item 8, Note B — Acquisitions and Divestitures
  13. [13] Item 7, MD&A — Recent Developments; Item 8, Note B — Acquisitions and Divestitures
  14. [14] Item 7, MD&A — Recent Developments; Item 8, Note B — Acquisitions and Divestitures
  15. [15] Item 7, MD&A — Recent Developments; Item 8, Note B — Acquisitions and Divestitures
  16. [16] Item 1, Business — Executive Summary
  17. [17] Item 1, Business — Executive Summary
  18. [18] Item 1, Business — Executive Summary
  19. [19] Item 1, Business — Executive Summary
  20. [20] Item 1, Business — Executive Summary
  21. [21] Item 1, Business — Executive Summary
  22. [22] Item 7, MD&A — Recent Developments
  23. [23] Item 7, MD&A — Recent Developments
  24. [24] Item 7, MD&A — Recent Developments
  25. [25] Item 8, Consolidated Statements of Income
  26. [26] Item 8, Consolidated Statements of Income
  27. [27] Item 8, Consolidated Statements of Income
  28. [28] Item 8, Consolidated Statements of Income
  29. [29] Item 8, Consolidated Statements of Income
  30. [30] Item 8, Consolidated Statements of Income
  31. [31] Item 8, Consolidated Statements of Income
  32. [32] Item 8, Consolidated Statements of Income
  33. [33] Item 8, Consolidated Statements of Income
  34. [34] Item 8, Consolidated Statements of Income
  35. [35] Item 8, Consolidated Statements of Income
  36. [36] Item 8, Consolidated Statements of Income
  37. [37] Item 7, MD&A — Non-GAAP Financial Measures
  38. [38] Item 7, MD&A — Non-GAAP Financial Measures
  39. [39] Item 7, MD&A — Non-GAAP Financial Measures
  40. [40] Item 8, Consolidated Statements of Cash Flows
  41. [41] Item 8, Consolidated Statements of Cash Flows
  42. [42] Item 8, Consolidated Statements of Cash Flows
  43. [43] Item 7, MD&A — Liquidity and Capital Resources
  44. [44] Item 7, MD&A — Recent Developments
  45. [45] Item 7, MD&A — Recent Developments
  46. [46] Item 1, Business — Executive Summary
  47. [47] Item 1, Business — Executive Summary
  48. [48] Item 1, Business — Executive Summary
  49. [49] Item 1, Business — Executive Summary
  50. [50] Item 1, Business — Executive Summary
  51. [51] Item 1, Business — Executive Summary
  52. [52] Item 1, Business — Executive Summary
  53. [53] Item 1, Business — Executive Summary
  54. [54] Item 7, MD&A — Recent Developments
  55. [55] Item 7, MD&A — Recent Developments
  56. [56] Item 1, Business — Executive Summary
  57. [57] Item 1, Business — Executive Summary
  58. [58] Item 1, Business — Natural Gas Pipelines
  59. [59] Item 1, Business — Executive Summary
  60. [60] Item 7, MD&A — Recent Developments
  61. [61] Item 1, Business — Business Strategy
  62. [62] Item 7, MD&A — Liquidity and Capital Resources
  63. [63] Item 7, MD&A — Recent Developments
  64. [64] Item 7, MD&A — Liquidity and Capital Resources
  65. [65] Item 7, MD&A — Liquidity and Capital Resources
  66. [66] Item 7, MD&A — Liquidity and Capital Resources
  67. [67] Item 1A, Risk Factors — Financing Our Business
  68. [68] Item 1, Business — Business Strategy
  69. [69] Item 7, MD&A — Recent Developments
  70. [70] Item 8, Consolidated Statements of Income
  71. [71] Item 8, Consolidated Statements of Income
  72. [72] Item 8, Consolidated Statements of Income
  73. [73] Item 8, Consolidated Statements of Income
  74. [74] Item 8, Consolidated Statements of Income
  75. [75] Item 8, Consolidated Statements of Income
  76. [76] Item 8, Consolidated Statements of Income
  77. [77] Item 8, Consolidated Statements of Income
  78. [78] Item 8, Consolidated Statements of Income
  79. [79] Item 8, Consolidated Statements of Income
  80. [80] Item 8, Consolidated Statements of Income
  81. [81] Item 8, Consolidated Statements of Income
  82. [82] Item 7, MD&A — Non-GAAP Financial Measures
  83. [83] Item 7, MD&A — Non-GAAP Financial Measures
  84. [84] Item 7, MD&A — Non-GAAP Financial Measures
  85. [85] Item 8, Consolidated Statements of Cash Flows
  86. [86] Item 8, Consolidated Statements of Cash Flows
  87. [87] Item 8, Consolidated Statements of Cash Flows
  88. [88] Item 7, MD&A — Consolidated Operations
  89. [89] Item 7, MD&A — Consolidated Operations
  90. [90] Item 7, MD&A — Consolidated Operations
  91. [91] Item 8, Consolidated Statements of Income
  92. [92] Item 8, Consolidated Statements of Income
  93. [93] Item 8, Consolidated Statements of Income
  94. [94] Item 7, MD&A — Recent Developments
  95. [95] Item 7, MD&A — Natural Gas Gathering and Processing
  96. [96] Item 7, MD&A — Natural Gas Gathering and Processing
  97. [97] Item 7, MD&A — Natural Gas Liquids
  98. [98] Item 7, MD&A — Natural Gas Liquids
  99. [99] Item 7, MD&A — Natural Gas Pipelines
  100. [100] Item 7, MD&A — Natural Gas Pipelines
  101. [101] Item 7, MD&A — Refined Products and Crude
  102. [102] Item 7, MD&A — Refined Products and Crude

Analysis on 6/21/2026