Oneok Settles $930M Insurance Claim, Increasing NGL Fractionation Capacity in Gulf Coast Region
January 11, 2023
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Oneok Stock Fair Value – ONEOK ($NYSE:OKE) is a New York Stock Exchange-listed energy services company. It is engaged in natural gas gathering, processing, storage and transportation, as well as the marketing, trading and storage of natural gas liquids (NGLs). The company recently announced the settlement of a $930 million insurance claim related to the Medford incident last July. The settlement covers physical damage and business interruption claims related to the incident and includes an initial payment of $100 million already received by the company.
This will improve the company’s ability to meet customer demand in key market areas in the Gulf Coast region. The new fractionator will also provide additional flexibility and redundancy to ONEOK’s existing fractionation operations, which are currently operating at near capacity. In addition to the new fractionator, ONEOK also plans to invest in additional infrastructure such as a new cryogenic plant and additional storage capacity. The completion of these projects will further solidify ONEOK’s position as one of the largest NGL producers in the United States.
Market Price
On Monday, ONEOK Inc. announced the settlement of a $930 million insurance claim which will be used to increase the natural gas liquids (NGL) fractionation capacity in the Gulf Coast region. The company’s stock opened at $67.4 and closed at $67.7, up 1.7% from its prior closing price of 66.6. It will also provide access to a full suite of NGL products and services, including natural gasoline, ethane, propane and butane. The increased fractionation capacity will enable ONEOK to better meet the growing demand for natural gas liquids in the region.
Additionally, it will allow the company to capture additional midstream margin opportunities associated with the production of higher-value products. The project is expected to generate a significant amount of additional revenue for ONEOK, which will serve as a long-term growth driver for the company. It is also expected to result in an increase in cash flows and dividends, which could lead to further gains in the stock price. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Oneok. More…
| Total Revenues | Net Income | Net Margin |
| 22.78k | 1.62k | 7.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Oneok. More…
| Operations | Investing | Financing |
| 2.92k | -1.05k | -2.07k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Oneok. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 24.44k | 18.13k | 14.12 |
Key Ratios Snapshot
Some of the financial key ratios for Oneok are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 28.9% | 12.4% | 12.4% |
| FCF Margin | ROE | ROA |
| 8.0% | 28.4% | 7.2% |
VI Analysis – Oneok Stock Fair Value
The fundamentals of ONEOK, a company that is engaged in the gathering, processing, storage and transportation of natural gas, provide a solid long-term potential. For investors looking to understand the intrinsic value of ONEOK shares, the VI Line can simplify the analysis. The VI Line calculates the intrinsic value of ONEOK shares to be around $81.1. However, currently ONEOK stock is trading in the market for $67.7, which is 17% undervalued compared to its intrinsic value. This provides investors an opportunity to buy well-performing stocks at a discounted price. Although this may be a good opportunity to invest, investors should remember to do their own research and exercise due diligence before making any decisions. Overall, the fundamental of ONEOK shares and its current discounted price make it an attractive option for investors looking for long term gains. More…
VI Peers
ONEOK Inc is a company that operates in the energy sector. The company is involved in the gathering, processing, storage, and transportation of natural gas and natural gas liquids. The company has operations in the United States, Canada, and Mexico. The company’s competitors include Kinder Morgan Inc, Energy Transfer LP, Enterprise Products Partners LP.
– Kinder Morgan Inc ($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 an energy company with operations focused on the midstream sector of the oil and natural gas industry. The company recently settled a $930 million insurance claim, which will be used to expand its natural gas liquids (NGL) fractionation capacity in the Gulf Coast region. This settlement will increase ONEOK’s ability to process and distribute NGL products to customers, resulting in increased earnings potential and a possible boost to the company’s stock price. Investors should consider this news as a positive sign that ONEOK is well-positioned for future growth and profitability.
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