ONEOK Delivers 6% Yield and Outperforms S&P 500

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Investing in ONEOK ($NYSE:OKE) can be a smart choice for those looking to increase their portfolio yield without sacrificing performance. With a 6% yield and performance that has outpaced the S&P 500, ONEOK has been delivering returns for both value-oriented and growth-oriented investors alike. ONEOK is a diversified energy company involved in natural gas gathering, processing, storage and transportation as well as natural gas liquids (NGL) fractionation, marketing, storage and transportation. It’s operations are located in the Oklahoma and Texas Panhandle regions as well as in the Midcontinent region.

Furthermore, ONEOK is the largest natural gas distributor in the state of Oklahoma. Given its underlying fundamentals, investors can feel confident that their investment in ONEOK will deliver returns that outperform the S&P 500 while also providing a reliable 6% yield. With its unique combination of yield and performance, ONEOK is an attractive option for any investor looking to enhance their portfolio’s returns.

Analysis

GoodWhale has conducted an analysis of ONEOK‘s financials and have identified that ONEOK is strong in asset, dividend, and growth, as seen by our Star Chart. Furthermore, ONEOK is rated as intermediate in terms of profitability with a health score of 6/10. This score reflects the company’s ability to sustain operations in times of crisis, due to its cashflows and debt. We have concluded that ONEOK is a ‘gorilla’ type of company; one that has achieved stable and high revenue or earning growth due to its competitive advantage. Such a company may interest value investors or those looking for long-term growth as they have confidence in the company’s financials. Additionally, investors with a short-term focus may be attracted to ONEOK due to its dividend and growth patterns. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Oneok. ONEOK_Delivers_6_Yield_and_Outperforms_SP_500″>More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Oneok. ONEOK_Delivers_6_Yield_and_Outperforms_SP_500″>More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Oneok. ONEOK_Delivers_6_Yield_and_Outperforms_SP_500″>More…

Key Ratios Snapshot

Some of the financial key ratios for Oneok are shown below. ONEOK_Delivers_6_Yield_and_Outperforms_SP_500″>More…

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 offering investors the opportunity to earn a 6% yield while beating the S&P 500. It is recommended for those seeking strong returns with relatively lower risk. Analysts note that ONEOK has a solid balance sheet with manageable debt, and a sound business strategy and operations.

Additionally, the company is well-positioned to benefit from a deregulated environment with strong customer relationships. Furthermore, the company has a record of delivering reliable dividends, and has seen a steady increase in its share price over the past few years. This makes it an attractive long-term investment for those seeking greater returns than the S&P 500.