Oneok Prices 10-Year Senior Notes at 6.10%

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Oneok Stock Fair Value – Oneok ($NYSE:OKE), Inc. is a leading midstream service provider in the United States. The company owns and operates natural gas gathering, processing, storage, transportation and liquids fractionation assets. Oneok has priced an offering of 10-year senior notes at a coupon of 6.10%, with net proceeds of $742 million. The firm plans to use these proceeds to repay amounts outstanding under its commercial paper program.

Oneok’s strong financial position and experienced management team have allowed the company to weather the challenging conditions in the energy sector. The company’s focus on operational efficiency and cost-reduction initiatives have helped it to maintain profitability and generate positive cash flow. Oneok’s 10-year senior notes offer investors a chance to participate in the company’s future growth potential.

Market Price

On Wednesday, Oneok stock opened at $64.7 and closed at $64.7, down by 0.8% from last closing price of 65.2. Oneok will use the proceeds from the sale of the new notes to redeem the existing notes and for general corporate purposes.

VI Analysis – Oneok Stock Fair Value Calculator

On average, stocks tend to move in the direction of their fundamentals. This means that a company’s share price will eventually reflect its long-term potential. The VI app makes it easy to see a company’s fundamentals and compare them to its current share price. Based on this analysis, it appears that ONEOK is currently undervalued by about 28%.

This means that the stock is trading at a discount to what its fundamentals suggest it is worth. This could be a good opportunity for investors to buy shares in the company.

VI Peers

ONEOK Inc is a company that operates in the energy sector. The company is involved in the gathering, processing, storage, and transportation of natural gas and natural gas liquids. The company has operations in the United States, Canada, and Mexico. The company’s competitors include Kinder Morgan Inc, Energy Transfer LP, Enterprise Products Partners LP.

– Kinder Morgan Inc ($NYSE:KMI)

Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. It owns or operates an extensive network of pipelines and terminals that transport petroleum products, natural gas, and other products. The company also owns and operates a fleet of liquefied natural gas (LNG) carriers. Kinder Morgan has a market capitalization of $40.72 billion as of 2022 and a return on equity of 7.82%. The company is headquartered in Houston, Texas.

– Energy Transfer LP ($NYSE:ET)

Energy Transfer LP is a publicly traded partnerships that owns and operates energy infrastructure assets in the United States. The company’s assets include natural gas pipelines, natural gas gathering and processing facilities, and crude oil pipelines. Energy Transfer LP is headquartered in Dallas, Texas.

– Enterprise Products Partners LP ($NYSE:EPD)

Enterprise Products Partners LP is a publicly traded partnership that owns and operates a diversified portfolio of energy assets. The company has a market cap of 54.94B and a ROE of 15.44%. The company’s operations are focused on natural gas, crude oil, and NGL (natural gas liquids) transportation, storage, and processing. The company also owns and operates a network of natural gas pipelines and gathering systems, as well as crude oil and NGL terminals and storage facilities.

Summary

ONEOK is a diversified energy company with operations in natural gas gathering, processing, storage, and transportation, as well as natural gas liquids (NGLs) fractionation, marketing, and transportation. Based in Tulsa, Oklahoma, the company’s operations are primarily in the Mid-Continent and Rocky Mountain regions of the United States. Investing in ONEOK can provide exposure to the energy sector while diversifying a portfolio beyond traditional oil and gas companies. The company’s diversified business model and strong financial position have helped it weather the recent downturn in the energy sector.

In addition, ONEOK has a history of paying steady dividends, which can provide income and potential upside for investors.